Lesson to be learned from apartment fire

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The insurance industry could hardly asked for a more effective illustration of the value of renter’s insurance than the fire at Thomasbrook Apartments a week ago.

Apartment residents who haven’t gotten around to getting a policy should use the example as motivation to explore that option.

Michael R. Adams was glad he had taken that step after a fire swept through the building and forced tenants from 23 apartments. The blaze started when a tenant discarded a cigarette in a plastic coffee container on a balcony.

“I’m just glad I decided to get insurance,” said Adams, 23. Because he paid $110 for a policy, he had coverage to get a hotel room and to buy food, even though he fled the apartment so fast he left his wallet behind.

Alicia Harms had just moved in recently and had not yet found coverage.

“I grabbed my laptop and purse and ran. I lost everything,” she said.

Ten of 23 apartments vacated as a result of the fire had no renter’s insurance, according to Bob Kelley of the Red Cross.

That percentage actually is better than the national statistics. A 2006 survey by the Insurance Research Council found that 57 percent of tenants had no renter’s insurance.

A prevalent myth is that apartments are protected by the apartment building owner’s property insurance, according to industry representatives. But those policies cover only the structure, not tenant’s belongings.

Many tenants don’t realize how much their possessions are worth. Agents suggest a tenant debating whether to purchase a policy just take a minute or two to add up how much their clothes, toiletries and electronic equipment are worth. It doesn’t take that much to get into five figures.

Here are a few tips for purchasing renter’s insurance, which typically covers damage from fire, smoke, tornadoes and windstorms and water damage from fire sprinkler systems.

* Shop around. Prices and types of coverage vary.

* Make sure whether your policy covers replacement cost or actual cost. The difference in payoff could be substantial.

* The cost of coverage can be lowered by switching to a higher deductible. Tenants also might be eligible for discounts if their apartment has features such as a sprinkler system.

* Remember that most renter’s insurance policies do not cover flood damage. If your apartment might be subject to flooding, you’ll have to purchase a separate policy.

* Compiling an inventory of belongings will help you remember what you own, which isn’t always easy after a traumatic event like a fire. Photos and receipts will help if an insurance company questions a claim.

As last week’s fire illustrated, sometimes innocent tenants have to pay the price for someone else’s mistake. Any apartment residents could suddenly find themselves standing outside, watching flames devour their possessions. The tenants at Thomasbrook could tell you how important coverage seems at that moment.