PASSAIC — Last month’s four-alarm downtown fire left 60 people without a home, and most have no insurance coverage to replace their possessions. The city has since proposed an ordinance that would require landlords to inform tenants of the benefits of renters insurance.
“Almost none of them had renters insurance,” Passaic Mayor Hector Lora said.
Those who lost their homes have received help to find new apartments and some necessities, but the mayor said they “took it on the chin.”
In response, local insurers and homeowners agree there are several excellent reasons for having renters insurance:
- Protection of personal belongings.
- Liability coverage if someone gets hurt at a rental home or apartment
- Coverage for additional living expenses, including temporary stays in a hotel or housing.
- It’s affordable.
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If the people who lost their homes and belongings in the Oct. 14 fire had insurance, it would have softened the blow and helped them get on their feet faster, city officials said. They would have received insurance money to buy clothing, appliances and other necessities.
After five years in office, Lora said he’s seen many people lose it all in fires or other disasters. That’s behind his push for an ordinance that requires landlords to inform prospective tenants about the benefits of insurance.
“Most people don’t know it exists,” Lora said.
Michael Boggio, an agent with Acrisure insurance in Fairfield, said too often renters are not aware that the policies are available and affordable.
“It is not too expensive,” Boggio said. “Somewhere between $200 and $250 dollars a year for coverage of about $20,000 in property.”
Boggio said more and more he sees language in leases that require renters to have insurance. It helps limit the liability of the property owner.
“It’s a good move,” said Alex Perez, whose family owns and operates the Perez Group and a few other companies that rent out about 1,000 apartments in Passaic. “People think that it is $600, $700 a year and forgo it.”
Perez said his company in its lease sets the expectation that both parties will have insurance and that it is a fine idea to require all the city landlords to provide information about renters insurance to tenants.
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About 80% of Passaic’s 70,000 residents are renters. Formally requiring landlords to educate their tenants could do much to protect people, many of whom will not easily bounce back if they lose their apartments to a fire, said insurance officials.
“It should make it easier for them to move on,” Perez said.
He also liked Lora’s idea of possibly holding an insurance fair for renters. Lora said he has five local insurance companies that will participate in the fair and is trying to figure out a date
The Passaic City Council is expected to vote on the measure at its Nov. 10 meeting.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.