DENVER, Jan. 18 — Apartment destroyed by fire. Condo unit burglarized. Those are sad headlines that are seen all too often. The National Fire Protection Agency estimates 94,000 apartment fires happened in 2005. Despite that fact, less than 50 percent of renters buy renters’ insurance that would provide coverage in case of fire, theft or damage. AAA Colorado has designated January as Insurance Review Month to remind everyone that an annual review of all insurance coverage is critical for safety, security and peace of mind. Following are some tips from AAA Colorado, one of the largest agencies in the state specializing in personal lines insurance. Don’t believe the myths Many people believe renters’ or condo insurance is not necessary because their landlord or Homeowners’ Association (HOA) has insurance that covers them. In almost all cases, this is not true. In fact, the majority of landlord or HOA insurance only covers the structure and does not replace valuables or provide liability coverage. In addition, many believe renters’ or condo insurance is expensive, when in reality it’s one of the least expensive insurance products you can buy — and just as essential as more commonly purchased products such as auto insurance. 2. Go with replacement value If you had to replace all of your possessions with new items, how much would it cost? Many people are surprised when they calculate the cost of replacing personal property such as clothing. Make an inventory and keep it in a safe place away from home — for example, in a safe deposit box or email it to yourself where it could be pulled up from any computer. 3. Homeowners’ Association (HOA) insurance If you own a condo, identify the amount of coverage already offered by your HOA. Many condo owners assume their HOA-provided insurance covers all the repairs necessary after a fire and are surprised that it will not replace flooring, dry wall, kitchen and bathroom fixtures, and the other “guts” of a condo unit. Ask your HOA what is covered and what’s not including losses on common grounds (such as a swimming pool or clubhouse). Often, when there is damage to a HOA community — used property that exceeds the HOA insurance, condo unit owners are responsible to make up the rest of the losses via a special assessment. Among the options in a condo insurance policy is coverage for this scenario. 4. Protect your liability The possibility often exists in apartment and condo dwellings that a leaky pipe in your own unit could cause water damage to your neighbor’s. Unless, you have personal liability coverage, you are responsible for paying the repair costs out of your own pocket. Personal liability damage also covers you in case you are sued if someone slips on ice on your property or similar incidents. In today’s highly litigious society, it’s as important to protect your liability as it is to protect yourself in case of fire or theft. 5. Your current insurance carrier Don’t ever assume that your coverage protects you in all scenarios. A qualified insurance agent should be expected to take the time to explain all coverage options. Shop around for the most detailed information, extensive coverage, service and discounts. Taking the easy way out can often lead to poor service and an insurance product that does not cover you as you expect when you need it most. For more insurance information visit www.rmiia.org (website for the Rocky Mountain Insurance Information Association, a non-profit insurance communications organization or www.aaa.com and click on “Insurance/Financial.” / AAA Colorado reaches one in four households in the state and is an advocate for safety and security for all travelers. As North America’s largest motoring and leisure travel organization, AAA provides nearly 50 million members with travel, insurance, financial and automotive-related services, as well as member-exclusive savings. ###
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