What Happens if Your Apartment Burns Down?

House fires and apartment fires are unfortunately common. Candles are left burning, stoves and ovens are left unattended, cigarettes aren’t put out properly, etc. 

While it’s important to keep in mind these dangers and be cautious of potential threats, accidents happen. All renters should have a clear plan when it comes to the possibility of their apartment catching fire.

Leasing and Renters Insurance 

First, make sure you are aware of the limitations and rules on both your lease and your renters insurance policy. 

When a fire occurs, the landlord is typically responsible for covering damages to the physical property. This doesn’t mean a landlord won’t seek compensation from you, as the renter, however. If the fire is determined to be due to negligence of someone within the apartment, the landlord may seek compensation for the damages. 

Renters insurance is not designed to cover damages to the actual property. Unlike home insurance, renters insurance is limited to covering your personal belongings as well as liability coverages. 

Does the Landlord Help with the Cost of Moving? 

In case of a fire that no longer allows the renter to live in the apartment, the landlord is not required to provide compensation if the renter has to move elsewhere. This is one reason that most landlords require renters insurance for all tenants. Part of renters insurance includes additional living expenses.

This coverage provides financial assistance in case a renter has to temporarily move out after a disaster. It can help with the cost of a hotel room, food, etc. for a certain amount of time as specified on the renters insurance policy. It generally only lasts until the rental property is repaired or rebuilt, but depending on the situation, may end sooner. 

Replacing Your Items After a Fire 

Once the fire is put out and everyone is safe, it’s time to assess the damage and file a claim. This is where it’s important to understand your renters insurance policy. There are two types of compensation you may receive for personal belongings coverage: actual cash value and replacement cost value. 

Actual cash value policies provide compensation based on the actual cash value of your items, along with depreciation. This means that as the cash value of your belongings goes down, so does the amount of compensation you can receive. 

Replacement cost value policies provide compensation without accounting for depreciation and replace your items with one of the same or similar value. This type of policy is more likely to allow you to replace your items, but it also tends to be more expensive. Keep in mind that certain items, such as electronics, jewelry, furs and art, have limited to no coverage under a basic renters insurance policy. If you have any expensive items such as these, make sure to purchase a policy floater to ensure they’re covered. 

Consider the damage done with the cost of your deductible before filing a claim. If the cost to replace your items costs less than your deductible, you may not want to file a claim and instead pay for the damages out of pocket. On the other hand, if the cost of replacing your belongings is well above your deductible, it may be more cost effective to file a claim and receive compensation.