Are you getting ready to move into your very first apartment? Are you currently making a list of all your potential expenses, to make sure that you can afford the place you want? Budgeting for your first apartment can seem tricky when you're trying to figure everything out, especially if rent turns out to be higher than you'd like. But one thing that you shouldn't skip out on getting is fire insurance. Here are some reasons why you need it:
Landlord's insurance doesn't cover you: If you've never lived in your own apartment, you may expect that your landlord will pay for the insurance. While it's true that your landlord will likely have fire insurance, it will only cover the property that he or she owns. Typically, this only includes the building itself. If your apartment is fully furnished, your landlord may get reimbursed if the furniture is destroyed in a fire. However, your landlord's insurance company will not pay you to replace your personal belongings. If your prize guitar or your computer gets damaged or destroyed, you're not going to be reimbursed unless you have your own insurance.
Pays for unexpected expenses: If a neighbor accidentally starts a cooking fire that forces you to evacuate your apartment, you will probably have to find somewhere else to stay for at least a few days. While some people have friends or family that they can stay with, you may be forced to move into a hotel. Your local Red Cross may pay for a day's worth of hotel costs, but then you're responsible for further accommodations. When you have fire insurance, your insurance company will cover part or all of the remaining costs of your hotel stay. If you are forced to purchase clothes so that you can continue to go to work, your policy may cover that as well. Due to the potential high costs of hotels and clothing, paying for insurance now may save you hundreds or even thousands of dollars in unexpected out of pocket costs.
Avoid being sued: Should you accidentally start a fire in your own apartment, your landlord may expect you to cover what his or her own insurance won't pay for. This may include the cost of paint or paying for a contractor to come in and repair any smoke damage. If you're unable to pay this, your landlord could try to take you to court. But if you have a good fire insurance policy of your own, it may cover reimbursing your landlord for these expenses.
For more information, talk to a company like Scovotti Insurance.