Many consumers wonder if they should purchase insurance to cover the contents of their apartment? After all the landlord has building insurance. If there is a fire or some other catastrophic event, won’t his insurance cover your personal belongings? Would your contents be covered if there is a fire in the unit next door, and there is smoke damage to your apartment?
Most people mistakenly believe that they would be covered for these types of events, and their belongings would be cleaned or replaced as needed. The reality is that each occupant is responsible for maintaining insurance coverage on their personal belongings. If there is a claim for damage of some sort, their insurance would cover their losses.
Another area of concern is the damage caused by your negligence. For example, if there is a water leak in your apartment or if you allowed the tub to overflow, would you be responsible for any damages caused to your unit and the units near or below you? The answer is that you could be. It is so much simpler to have apartment contents insurance in place to provide insurance coverage for all potential calamities.
An example may help to illustrate the risk of not having insurance coverage. A student living on the top floor of an apartment building lost everything due to a fire in a unit several floors below. There was a lot of smoke damage. But in addition, the fire had spread to the roof, and although her unit was not touched by the flames, the firemen cut holes in the ceiling, checking for fire spreading into adjacent units. Her apartment was destroyed, her personal belongings were damaged by water and smoke. She lost everything.
Apartment contents insurance would have allowed her to recover and replace all of her clothing, computer, and furniture!