Moving into a new place? Consider renters' insurance. (Tribune file photo)
With a busy moving day approaching Thursday, renters have a lot on their minds.
Finding an apartment at the right price in the preferred neighborhood. Packing up all their stuff. Scheduling movers.
Experts say getting renters? insurance should be on that checklist as well. Some landlords require it. It?s a safeguard to protect personal, valuable items should they be stolen or destroyed in a fire, like the extra-alarm fire in Lakeview over the weekend that engulfed two apartment buildings.
?People don?t realize in a fire like that their personal items are not covered,? said Maurice Ortiz, marketing director for The Apartment People.
At least one renter from the weekend apartment fire had renters? insurance from Allstate, said Char Schoenbach, an agent in Lakeview a few blocks away from the fire.
Because he had a policy, he is able to stay in a hotel and the insurance company could put him up in corporate housing depending on how long it takes to move back into the building.
The company pays 100 percent above the normal living cost up to one year. That means the company also helps pay for meals, dry cleaning, transportation costs incurred as a result of being displaced. For example, if it costs $2,000 a month to live in the apartment and now is double the cost because of being displaced, the company pays the difference, she said. The insurance company also covers the cost of buying items that need to be replaced.
?We put you back whole is what we do should there be a bad loss,? Schoenbach said.
A neighbor down the block from the fire bought a renters? insurance policy Tuesday, she said.
?They think, ?Oh my God what if that happened to me?? It kind of freaks people out a little bit,? Schoenbach said.
Still only three in 10 renters have renters insurance, said Missy Lundberg, State Farm?s Chicago area spokeswoman, citing a stat by the Insurance Information Institute.
?That just shows there?s a huge misconception that you don?t need it,? she said.
?It?s going to give you peace of mind,? Lundberg said.
Besides, more landlords and property management companies in Chicago over the last 5 to 10 years are requiring renters? insurance in both condo and apartment buildings, Ortiz said.
The apartment-finding service gives every renter a welcome packet once they find an apartment with moving information, coupons for area retailers, CTA maps and a list of insurance agents to contact for insurance rates, he said.
Lundberg of State Farm tells RedEye five things renters should know about securing renter?s insurance. Scroll through the gallery to see them.
1. It?s the renter?s responsibility to insure their belongings inside their apartment like furniture, TV, jewelry, clothes.
One of the big misconceptions is that landlords will take care of anything if there?s a fire or damage to the apartment. Not true. The landlord is responsible for the structure itself, but not the renter?s stuff.
2. It?s affordable.
Renter?s insurance averages about $200 a year. That comes out to about $15 to $20 a month. Renters can pay for the policy up front or get billed monthly. They can get a discount if they get renter?s insurance from the same company that provides their car insurance.
3. Renters need to assess what they have, create an inventory list and guesstimate a value for it.
They can enlist the help of a video cam to take note of what they own and then keep the memory card in a safe deposit box.
The insurance agent will help figure out a policy limit, which is the maximum amount of money the renter will get should something happen to his or her possessions. They?ll also work with them to determine the deductible, which is what the renter will pay out-of-pocket before the insurance covers the rest of what was lost up to the policy limit amount.
4. Insurance can help cover cost of living expenses.
In case of a fire, for example, the insurance policy will pay for a hotel stay if the renter is displaced and costs associated with going to the store and buying essentials such as clothing. Within 24 to 48 hours, a renter?s claim is moving through the process. How long it takes to replace all the items in the apartment depends on the fire investigation.
5. Even if renters don?t think they own pricey items, what they do possess adds up in value.
Everything adds up: clothes, furniture, dishes, TV, etc. Without renters insurance, tenants can end up spending thousands of dollars out of their own pockets to pay to replace those items.
lvivanco@tribune.com
Read more: PHOTOS: Residents scramble after Boystown apartment fire
Read more: Column: I live two doors down from the fire-ravaged buildings
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