Renters Insurance

Make It Simple- Renters Insurance

This is our fourth installment in the Make It Simple series. Have you tried to read your insurance policy and just given up? It can be very confusing! Let me try to simplify it for you.

Every policy (regardless of type) should have a Declarations Page, commonly referred to as the “Dec Page”. This page “declares” who you are, what property you have insured, your coverage choices and how much you are paying for this policy period.

Similar to Homeowners insurance, there are 2 types of coverage on your Renters insurance policy; Coverage that protects the other party and coverage that protects you.

Coverage that protects the other party:

Personal Liability: Covers you if someone is injured on your property due to your negligence.  It may help pay for treatment of their injuries and your legal costs.

Guest Medical Payments: May provide reasonable and necessary medical expenses to a guest on your property injured in an accident.

 

Coverage that protects you:

Personal Property:  This is your contents on the property. This can be written as Actual Cash Value (ACV) or Replacement Cost (RC) coverage. ACV coverage means your belongings are covered at the amount it would cost to replace them minus depreciation. So if you have a 5 year old tv that is stolen, you will receive the amount it would cost to replace the tv 5 years ago.  RC coverage means your belongings are covered at the amount it would cost to replace them at the time of the claim. So if you have a 5 year old tv that is stolen, you will receive the amount it would cost to replace the tv at todays cost.

Loss of Use:  May provide reimbursement for reasonable increases in living expenses (such as a hotel room or apt) due to a covered loss, if your rental home is uninhabitable.

Deductibles:  is the amount you pay out of pocket when you file a claim for a covered loss. You will have several options to choose from for your deductible. If you have a $500 deductible and a $6,000 loss, the insurance carrier would pay you $5,500 for the claim. A higher deductible will generally                                                             mean a lower premium and vice versa.

Additional coverage: You may be able to add optional coverage such as extra jewelry coverage or Identity theft restoration or increased coverage for business property.

For Parents of college students:  if you have kids living in dorm, remember- personal property coverage  on your home insurance policy will extend to the dorm. But it only covers up to 10% of your personal property coverage amount. A renters policy is an inexpensive way to make sure you child is covered at school!

    If you have questions about your home, auto and commercial insurance, please call Brockman Premier Insurance at 877-987-8683 or email us at  brian@brockmanpremier.com.
Please visit our website for more insurance tips and information.

Personal property on vacation

Are you covered while traveling?

   Most of us take the "necessities" with us while traveling. My computer, my phone, my tablet are all necessary for me to survive a trip. (Don't worry - I consider my toothbrush necessary too!)
   So what if your personal property is stolen, broken or lost while traveling with you? Your stuff isn't at home, so will your homeowners/renters insurance policy cover this loss? Most will. But there are restrictions. The coverage varies from carrier to carrier, policy to policy. Always call your agent before you take a trip and make sure you know the specifics of your policy.
   For most policies, these necessities would be covered under Off Premises coverage. Most policies will cover up to 10% of the Personal Property coverage for off premises personal property. So if your Dwelling value is set at $200,000 and you have 50% personal property coverage ($100,000) then your off-premises coverage would be $10,000. Personal property means your necessary electronics, as mentioned above, but it also means your jewelry and your clothing. Keeping that in mind, $10,000 can go quickly. So think about the value of what you are taking with you. You may want to leave some things at home. You may want to add a jewelry rider to your policy. This would list specific pieces of jewelry at their appraised value. They would not detract from your off-premises coverage. You can also add extra coverage for cameras and computers on some policies. Again, contact your agent and see what your options are for your policy.
   Also- keep in mind that your personal property is subject to your All Other Perils deductible. So keeping with the $200,000 dwelling amount, if you have a 1% deductible, you will pay out the first $2,000 for any property loss. So if you have a $10,000 loss, you will only be compensated up to $8,000. If you add the extra coverage for a specific piece of jewelry or a camera, there is no deductible.
   Traveling can be great fun. Make sure you protect your property while you are traveling so your trip isn't ruined by loss.

Do you have questions about your home, auto or commercial insurance? 
Call Brockman Premier Insurance:
Local: 214-592-0859
Toll Free: 877-987-8683
or email: brian@brockmanpremier.com
Visit our website for great tips! www.wekeepuinsured.com