Fire in New Jersey Proves the Worth of Renters Insurance
Most people today know how important things like homeowners insurance and car insurance coverage are when it comes to protecting their financial security, belongings and health. However, these same people seem much less convinced of the benefits of renters insurance. Despite this, some people choose to obtain this coverage and eventually discover firsthand just how helpful it can be. A number of tenants in New Jersey, for example, were recently able to recover at least some of their losses after a fire ravaged their apartment complex in late January 2015.
Studies show that most tenants do not have renters insurance, an effective type of financial protection that typically includes liability coverage and other benefits. However, this type of insurance is slowly growing more popular, so much so the Avalon at Edgewater apartment complex in northern New Jersey actually required tenants to obtain it. The company allowed tenants to either take out a policy on their own or go through an affiliate based in Virginia. According to one resident, tenants were required to carry at least $10,000 in coverage for their belongings, and another $100,000 for liability insurance.
Now, the benefits of renters insurance have likely been made clear to these tenants, as the Avalon at Edgewater was ravaged by fire on Wednesday, January 21. In total, 500 people are now homeless and have lost most of their clothes and possessions. Fortunately, their renters insurance will likely be able to help replace these objects and may even be able to cover living expenses, such as hotel costs.
While it is fortunate that the apartment complex understood the benefits of renters insurance, they have not been completely absolved from blame: several legal experts have commented that if the company was negligent, the tenants could have grounds for a lawsuit. Officials have stated that the fire was caused by a worker using a blowtorch, but little else is currently known. Meanwhile, tenants in other areas should keep this case in mind: before you search for more affordable auto insurance or car insurance tips, consider whether you can afford to go without renters insurance in the event of a disaster. For more, read this link.