Archive for the ‘Renters Insurance Questions and Answers’ Category

Should Sky Rocketing Gas Prices Push You to Give Renters Insurance a Pass?

Tuesday, May 22nd, 2012

If you are a resident of South Florida, the rising gas prices might be giving you sleepless nights. Consumers are baffled and angry with these relentless price rises, even as the United States boosts its own oil production capabilities in a bid to become less dependent on supplies from foreign countries. During the week of May 7, 2012, oil prices in Florida hit the $3.75 mark from $3.66 the previous week and $3.38 a year ago! At some specific stations across Florida, the prices have even touched $4!

Some of the reasons for this abnormal price rise include a latent fear that Iran would refuse to supply oil to the United States and, of course, the phenomenal rise in the prices of crude. Moreover, the ever-exceeding demand for energy is making matters more and more difficult with every passing day. But how does all this link to Renters Insurance? The first misconception many people have is that if you are a renter, insurance should the landlord’s problem and not yours.

Should Renters Insurance Premiums Take a Backseat?

In a situation like this, where gas prices have clearly managed to throw your monthly budget out of gear, should other equally important things like paying your renters insurance premiums take a backseat? Well, the answer is, Certainly NOT! If you are living on rented property, renters insurance will allow you to cover the expenses associated with theft or damage of valuables in within the rented property. Similarly, it would also cover medical expenses in case of accidents that take place within the premises. Therefore, having a renter’s insurance policy is a smart way to minimize unexpected expenditures.

How Much Would Renters Insurance Cost?

Some of the factors on which your renters insurance premiums depend include:
• The extent of coverage you desire.
• The number of people residing in the rented premises.
• The location and age of the rented property.
• Deductibles applied and presence of pets and types of pets present.
• When you check renters insurance online or otherwise, the insurance provider would carry out a complete evaluation on your credit rating. This would be carried out for a comprehensive risk analysis. If you have been bankrupt in the past or delinquent on your payments, the perceived risks would be higher and you might be required to pay higher premiums.
• Your past claim frequencies and amounts you have claimed will also be taken into consideration.

Shopping for the right renters’ insurance quote online could be a great way to save hundreds of dollars. Make sure you have time for some research the best deals as the savings you obtain can help offset high gas prices this summer! To quickly compare renter’s insurance rates right now, just enter your zip code into the box on this page.

Importance of Creating Home Inventory in Home and Renters Insurance: A Reminder from the Delaware Insurance Commissioner

Wednesday, May 2nd, 2012

Karen Weldin Stewart, the insurance commissioner of Delaware, was quoted by in a report published on March 20, 2012, as saying, “Creating a detailed inventory of your possessions is one of the best ways to ensure you have the right amount of homeowners or renters insurance for you and your family.” This is nothing new. After every major catastrophe, most newspapers, online journals and television talk shows remind homeowners and renters about the importance of including a home inventory in your home and renters insurance. The Better Business Bureau (BBB) recommends taking some basic steps before and after a disaster. Let’s take a quick look at the BBB recommended steps.

Renters Insurance: Things to Do Before a Catastrophe

  • Create home inventory – The BBB recommends that you take photos and/or record videos of your home, both from the outside and the inside. You should also collect and save receipts of the all major items purchased by you. It is also important to keep a copy of each of these documents somewhere outside your home.

Things to Do After a Catastrophe

  • Take pictures of the damage – After the catastrophe, you should make a list of damages caused by the catastrophe. It is better if you can take photos and videos of the damaged items immediately after the catastrophe.
  • Contact your insurance adjuster – Inform your insurance adjuster about the damage immediately after the disaster. When you have all the documents, it becomes easy for you to get a grant on your home and renters insurance claims.

According to Stewart, “Violent weather events affected approximately 80 percent of the nation’s population over the past six years. In 2011, many Delawareans experienced the effects of Hurricane Irene which left widespread destruction in her wake.”

The commissioner also recommended that home owners and renters should use NAIC’s myHOME application to simplify the process of documentation. This is a mobile phone application available for iPhone and Android smartphones for free. Consumers can also download home inventory checklists and tips from the official website of the Department of Insurance, Delaware.

Talking about the importance of creating home inventory for home and renters insurance policyholders, Stewart also said, “All renters and homeowners should develop a home inventory, and this is especially important for established families with years’ worth of family possessions,”

If you are currently planning on comparing renters insurance quotes to buy the most suitable policy, just enter your zip code in the box on this page.

The Different Types of Peril Insurance Options in Renters Insurance

Wednesday, April 11th, 2012

According to statistics from the Red Cross, occupants in only one out of the 20 units of the Hidden Cedars condo complex that were destroyed in the devastating fire on 25th March, 2012 had renter’s insurance. The report published in also revealed that “$1 a day could have saved the fire victims thousands.” Talking about the importance of having renter’s insurance, Paul Johnson of Brooks Insurance said, “Tenants policies are very important coverage…if your apartment is caught in a fire your contents would be covered.”

When it comes to buying renters insurance, you need to take into consideration the different peril insurance options. For example, the named peril type of insurance covers you only in the event of certain catastrophes such as hailstorm, fire, theft and others. On the other hand, an all-risk protection renter’s insurance policy covers you from all possible disaster risks. Let’s take a look at the different types of peril insurance options in renters insurance.

Kinds of Peril Options in Renters Insurance

Considering weather conditions and other risk factors, you should buy a renter’s insurance policy that suits your requirements the best. Following are the three types of peril renter’s insurance policies.

1. All peril – As the term suggests, all peril or all-risk protection renter’s insurance protects you against every possible type of loss. Of course, you need to pay more expensive premiums for this type of insurance.

2. Named peril – Named peril insurance policies will provide coverage only when the cause of the disaster is included in the list of named perils within the policy. In general, a named peril policy may cover you for the following.

  • Fire or lightening
  • Explosions
  • Damage due to snow, ice, or sleet
  • Vandalism
  • Theft
  • Smoke damage
  • Hailstorm or windstorm
  • Damage from electrical current
  • Falling objects
  • Volcanic outbreak
  • Damage caused by vehicles
  • Pipe freezing
  • Riots or civil disturbances
  • Damage caused by aircraft
  • Water heater cracking, tearing, and burning
  • Water damage from plumbing, heating, or air conditioning overflow

3. Multi Peril – Also referred to as a broad form insurance policy, the multi peril coverage offers more extensive coverage than that of a named peril insurance coverage. The only difference is that you have the option to exclude certain disasters from the list of disasters that are to be covered.

Make sure that when you buy renters insurance from any company, you take into consideration all the pros and cons of these types of renters insurance. If you are currently planning to buy renters insurance, just enter your zip code in the box on this page to quickly compare renters insurance quotes:

Frequently Asked Questions Regarding Renter’s Insurance

Tuesday, April 3rd, 2012

Among the more unusual kinds of insurance available on the market is renter’s insurance. This kind of insurance is a good idea for anyone who rents a home and often mandatory for anyone who rents an apartment. Read on for common inquiries people have about this kind of insurance.

1. Why is renter’s insurance needed if my landlord is insured? Your landlord’s insurance covers his assets and protects him. Namely, landlord insurance protects his property and financial interests. His insurance will replace or repair his building and land, or give him a market cash equivalent to let it go.

2. So what does renter’s insurance actually cover? Renter’s insurance covers the renter and his interests. If you live in an apartment building that burns down, the apartment’s insurance will not cover your personal belongings. You will also be liable for finding your own housing while the building is repaired or you find a new place to live.

3. What if I have restricted category belongings like firearms? You should always check with your renter’s insurance provider about specific categories of items. How these types of items are covered does vary drastically from company to company. Variations in laws can affect this as well, from both municipal and state levels.

4. How much do I have to pay for renter’s insurance? No one wants yet another monthly bill, however, renter’s insurance is not like health or homeowner’s insurance. Since it is really only covering your belongings and possibly temporary housing due to natural disaster, building problems or theft, renter’s insurance can be had in most locations for mere dollars per month.

5. How exactly do I go about getting renter’s insurance? Like most other forms of insurance, the internet is a great place to start looking. You can also check your local phone book and visit retail and commercial office locations in your community.

Deciding whether or not you need renter’s insurance is sometimes a no-brainer. Check your lease for your house or apartment, because there is typically a clause mandating a renter have their own insurance to cover their belongings. Even if not, given the minimal cost, a renter’s insurance policy is always a good idea for anyone who has a lot of high-value belongings that they would not want to just repurchase in the event of theft, natural disaster or fire. In the end, renter’s insurance is a financial protection of saved assets.

To begin comparing renters insurance quotes now, enter your zip code into the box on this page.

Renters Insurance for College Students – What You Need to Know

Thursday, February 16th, 2012

The cost of attending college continues to increase every year. Not only is tuition becoming more expensive, there is the added cost of text books, computers, other electronics, clothing, housing, furniture and all the other personal items necessary for college. Should these items ever need to be replaced, the cost could be staggering.

Every college students, those living in dorms and those living in rented housing, should carefully consider purchasing renters insurance. This protects a student’s personal property if it should be stolen or damaged as a result of some unexpected event. Renters insurance for college students can also protect against liability if someone is injured while visiting their housing.

Basic Types of Renters Insurance:

  • Personal property coverage will pay to repair or replace a student’s personal belongings if they are stolen, damaged, or destroyed. It is important to determine if the policy will reimburse for the “actual cash value” or “replacement cost” of the items.
    • With actual cash value coverage the reimbursement is for the cost of the personal property at the time of the claim. (Less any deductible.) A five-year-old laptop will be reimbursed at the current value of a five-year-old laptop.
    • Replacement cost coverage will reimburse the full cost of items at their current cost. Your five-year-old laptop would be covered for the cost of a brand new laptop.
  • Renters liability insurance provides coverage against a lawsuit and/or claim for property damage or bodily injury to others. If a visitor should be involved in an accident, this type of insurance should provide coverage.
    • The owner of the residence may be deemed liable for some types of liability or bodily injury claims. However, this can be a murky area and often difficult to pinpoint who will be held responsible.
  • Floater coverage, also called rider coverage, will provide insurance for unusually expensive items such as an art collection or jewelry.
  • Term insurance can be purchased to cover only the portion of the year when the student is actually at school. Term insurance can be reevaluated and adjusted each school year to address any changes, such as a new location or type of residence.
    • Term insurance typically is less expensive than insurance that continues in effect for a longer period of time. However, it is important to remember to renew at the beginning of each school year.

It is essential to keep track of all the personal property a student has in their college residence. Have a complete list of purchase prices, serial numbers and model numbers if applicable, and a description. Photographs are also helpful. Additionally, it is important to keep this information in a location other than your residence. Even the most detailed list will not help if it is also destroyed.

When determining if you need renters insurance, and how much, estimate the replacement value of the personal items to be covered. Check with the school’s administration for any agreements they may have arranged with insurance companies. Compare renters insurance quotes from several companies, but don’t forget to have your college student’s renters insurance in place before school starts.