A fire last week in Warwick destroyed 38 condo units displacing over 100 people. As the reporter went on about where the fire started and how it spread, the “insurance geek” in me could not help but wonder and hope that the 100 people displaced had either condo insurance or renters insurance.
I understand that paying an insurance premium every month “in case” something happens, can feel frivolous. However, accidents happen all the time. Whether the damage is the result of fire, flood, or burglary, the stakes are too high. The people involved in the Warwick fire that do not have condo or renters insurance, lost everything and have no way of getting reimbursed.
Many people are under the misconception that their losses will be recovered through their condo association’s or landlord’s insurance. This is a critical misunderstanding that can cost you everything. Ordinarily, condominium association’s insurance covers the damage to the building which the association is responsible for and liability for the condo association, but not the contents inside of each unit that are owned by the unit owners. Similarly, landlord insurance covers the landlord’s interest in the building, their loss of rental income and liability against being sued, but nothing for their tenants’ belongings. This is really important to understand, because if you experience a fire or flood, no one is reimbursing you. Can you afford a hotel until you find somewhere else to live? How will you replace all of your furniture? You cannot afford not to have coverage.
Condo and Renters Insurance is critical to make sure are covered for your loss of belongings and your personal liability coverage. These policies also provide you with “loss of use” coverage which allows you to pay for temporary or replacement housing after a covered claim. It’s important to note that renters insurance, also called tenants insurance, is one of the least utilized types of insurance. Luckily though, it also tends to be one of the cheapest. Depending on how much coverage you choose, where you live, and your deductible amount, the average cost annually is only about $200. This is a pretty reasonable price, considering that the average renter has $20,000 worth of valuables and belongings in their apartment. Condo insurance can be equally as inexpensive depending on the amount of your valuables and whether you as the condo owner are responsible for any portion of the building or for upgrades and improvements to your unit. This varies greatly based on your condo association’s rules.
If you are interested in obtaining condo or renters insurance give us a call today. Our agents can help you discuss your current situation and help find a plan that can fit into your budget and lifestyle.
If you enjoyed reading this, please subscribe to the Blog Edition of the Loiselle Ledger, the official newsletter of Loiselle Insurance. As a subscriber you’ll receive bi-monthly emails highlighting our latest blog posts. Subscribe Now.