Midvale apartment fire tenants feel misled into paying for insurance that didn’t cover them

MIDVALE — Residents displaced by last week’s apartment fire said they feel misled into believing they had insurance that would cover their personal belongings.

Daniel Chavez, a tenant at the North Union Apartments, told KSL the landlord had liability insurance that residents paid into every month, in case the residents damaged the property; however, many of the residents thought they were paying for coverage to protect their own belongings.

“We saw it on the receipt every month: Renters’ insurance, $15 a month. That’s self-explanatory when you see that,” Chavez said. “As a renter you’re going to think, ‘Oh why would I need another renters’ policy on top of this?'”

Chavez is not the only one who thought that. In an email shared with KSL, a coalition of the residents from the North Union apartment building laid out their grievances with management, including poor communication and delays on deposits. However, the chief item is the claim that residents were misled to believe they were given renters’ insurance.

“leasing agents told them the building’s required $15 per month charge meant they didn’t need their own renter’s insurance,” the email stated.

“It has come to everyone’s attention with these events that we have been misinformed and misguided by the monthly fee that only covers the property of the building,” the email continued. “Personal property is not covered and anyone who did not have a separate policy is now at a total loss.” 

Utah Insurance Department’s Property & Casualty Division Director Tracy Klausmeier said renters should always review the policy themselves to better understand what is and is not covered. She also recommended renters always talk to an insurance agent about a tenant’s policy.

“Unless you can afford to cover all of your belongings in this very case where a fire takes everything you own, you need that policy in place so that you can get back on your feet,” Klausmeier said.

KSL legal analyst Greg Skordas said if the phrase “renters’ insurance” was actually on the bill, then residents may have a claim, and the landlord may be liable to pay damages. 

“It would be reasonable for them to assume that they’re getting what we historically and what we in the legal community know as renters’ insurance and that is insurance on your personal property in case there’s a fire or something like that, so if that occurs, you’ll be covered,” Skordas said.

He explained that even if it did not explicitly say insurance, but residents were led to believe that is what it meant, the landlord may still be on the hook.

The apartment complex was built in 2022 and is owned by Keller Investment Properties. The company referred KSL to North Union Apartment managers, and they have not yet responded to requests for comment.

Residents in all 220 occupied units have been displaced. A preliminary investigation by crews at the scene found that the fire appeared to have started after a mechanical issue in the attic above the units on the top floor. Unresolved maintenance issues were also listed as a top complaint from residents.

Contributing: Cameron Elliott

This story was adapted from a radio broadcast script using artificial intelligence. Every story, including those adapted with AI, is reviewed by a human editor before publication to ensure that KSL’s editorial standards are upheld.