Tag Archives: renters insurance

Renters Insurance

The Importance of Renters Insurance

If you live in a rental or apartment, there is a 60% chance that you don’t have the proper insurance. Despite the fact that rented homes are more likely to be burglarized than owner-occupied properties, nearly 60 percent of renters don’t have renters insurance.

Why does it matter?

“If you rent a house or apartment and think that your landlord is financially responsible when there is a fire, theft or other catastrophe—think again,” warns the Insurance Information Institute*. Landlords may have insurance to protect the building, but your landlord’s policy won’t replace your personal possessions. The best way to protect yourself financially against theft, fire, etc. is to buy a renters insurance policy.  Renters insurance can cover your possessions, liability, and additional living expenses. Let’s take a look at these three types of protection:

 Possessions

Standard renters insurance protects your personal belongings against damage from fire, smoke, lightning, vandalism, theft, windstorm, water, and other disasters listed in the policy (see the policy for details) – floods are not covered. There are “special form” policies available as well and they cover many more perils than standard “broad form” policies.

To decide how much insurance to buy, you need to know a ballpark value to replace of all your personal possessions—including furniture, clothing, electronics, appliances, dishes, and even towels or bedding (most people insure their “stuff” for $20,000-$100,000). There are two types of settlement options for your possessions if there is a claim:

Actual Cash Value pays to replace your possessions minus an amount for depreciation up to the limit of your policy.

Replacement Cost pays the full cost of replacing your possessions (with no deduction for depreciation), up to the limit of your policy. The price to add replacement cost coverage is minimal, so always ask for replacement cost.

Note that most renters policies offer only limited coverage for items such as jewelry, guns, etc. If you own these items, you may want to supplement your policy with an endorsement. An endorsement is added to the policy providing additional insurance for valuables and covers them for perils not included in your policy such as accidental loss.

Liability

This coverage is not what you typically think about when you think renters insurance.  Renters insurance policies usually provide liability protection in the event you unintentionally cause injury to others or damage their property.  It also pays for damage or injury caused by your pets.  If you are sued, the liability portion of a renters policy may pay for both the cost of defending you in court and for the damages, up to the limit of the policy. Liability limits generally start at about $100,000.

Additional Living Expenses

Many people are pleasantly surprised to learn that Additional Living Expense (ALE) coverage is typically included in a renters insurance policy. If the home or apartment you are renting is damaged or destroyed and you need to live elsewhere while it is being repaired or rebuilt, renters insurance will cover your additional living expenses—namely the difference between your regular living expenses and the additional costs incurred by having to live away from your home, such as hotel bills, temporary rentals, restaurant meals, etc.

A typical renters policy costs $10 – $40 per month. Contact us today at 414-744-6614!

*Insurance Information Institute, September 30, 2009

Preparing for College

Insurance Tips for Back-to-School Time

College is expensive enough without finding out that an accident or theft isn’t covered under your current insurance policies. As you get your children ready to head off to school, there’s one vital item to add to your list – a review of your insurance coverage. It’s important to keep in mind that policy language varies from state to state, and there are never “one-size-fits-all” situations, but below is a general guide. If you have questions about Wisconsin policies, or want to go over your insurance needs, don’t hesitate to contact us!

HOMEOWNERS (may vary by state and individual policy)

  • Coverage of personal property: Most homeowners policies provide 10% of Coverage C (Personal Property) for property owned by an insured that is at a residence other than the insured’s.  For example, if the contents of a policyholder’s home are insured for $100,000, a student’s property up to $10,000 would be covered if living in a dormitory – provided the damage is caused by a covered peril and the student meets the definition of an insured.
  • Liability coverage: There usually is an exclusion for damage to property rented to an insured, so generally damage to a dorm room or apartment would not be covered.  See your specific policy language for details.
  • Ensuring adequate coverage:  Contact us to get specific answers and information about Wisconsin coverage. It’s a great idea to create an inventory of the items your student is taking to school by keeping photos and/or receipts.
  • Renters insurance: For apartments or houses off-campus, renters insurance is strongly recommended if a particular homeowners policy does not cover a student’s personal property. Certain items, such as jewelry or expensive electronics, may require special coverage, or a “rider.”  Landlord policies generally only cover the structure, not the possessions of renters.

AUTO (may vary by state and individual policy)

  • Coverage without a car at school: If your student will continue to drive while at home on school breaks, they should continue to be listed on your auto policy. If they are attending school more than 100 miles from home, and are not taking a vehicle with them, he/she may qualify for a distant-student discount.
  • Coverage with a car at school: In most instances, a car registered to parents and listed on their policy will be covered if used by a student (listed as a driver) while away at school, however, you should check with your insurance company to make sure. And note that a change to the principal location of the vehicle could result in a change in premium.
  • Driving a friend’s car at school: Students generally would be covered while driving a friend’s car if the students are listed on their own policy or their parents’ policy and do not have regular use of the vehicle. The coverage would likely be secondary in this case, as the carrier for the friend’s vehicle likely would be the primary coverage.
  • Coverage discounts: In addition to the possible distant-student discount mentioned above, students may qualify for a good-student discount. To qualify, most insurance carriers require that a student be enrolled as a full-time student at an accredited college or university and meet certain academic qualifications (typically a 3.0 GPA).

Going away to school is an exciting time for students and their parents. Making sure you’ve got the right insurance coverage can help you protect your assets as you invest in your child’s future. We’re happy to discuss your coverage and options — just give us a call (414-744-6614), email (info@insurancecentermilwaukee.com), or stop at our office!

Tornado Truths

Tornado truths that can help you stay safe

Tornadoes have caused severe and irreparable damage to tens of thousands of Americans and their property in recent years.  Although you can never control the weather or the outcome of a destructive storm, there are steps you can take to help you and your family remain protected in the event of a tornado. Those steps of action begin with knowing the facts.

Here are a few tornado truths that could help keep you and those you love safe:

When indoors, shut all windows and doors. Do not leave them open in an attempt to follow the mythical need to “pressurize” your home because the result would more likely be debris flying through the window and causing severe harm, or wind pressure working to lift the roof off the house from the inside.

If you are inside your home or other structure, retreat to the lowest level (a basement is ideal) or the room closest to the middle of the home or farthest from windows and doors. Do not seek a “corner” of the structure for your retreat; instead, go to the center-most point, away from windows and anything heavy that could fall on your head.

If you’re outdoors, find the lowest spot, such as a ditch, and lie flat on your stomach, covering the back of your head with your hands.  Do not follow the myth of seeking shelter underneath a bridge or overpass because it could collapse on top of you or large debris and winds could come rushing underneath and potentially sweep you up into the tornado itself.

If you are in a vehicle, abandon the vehicle and try to find shelter in a structure or outdoors in a low place where you should lay stomach-down and cover the back of your head with your hands. Most importantly, do not attempt to drive away from the storm unless it’s very obviously far away and moving in the opposite direction.

Do not take shelter near a road and expect the tornado to miss you. Some myths say that tornadoes will reverse their directions when nearing a road or foothill, but a tornado doesn’t discriminate and will keep on its path.

Use head gear, if available. Head protection can be the number-one most important factor in remaining protected from flying debris—indoors or outdoors—so know where bike, football, batting, boxing and other helmets are in the house, and make them easily accessible.

At the Insurance Center of Milwaukee we want to help you know the tornado truths that will help keep you and your family safe. For more tornado safety tips, visit the Storm Prediction Center’s comprehensive guide at http://www.spc.noaa.gov/faq/tornado/safety.html.

 Contact Us!

 At the Insurance Center of Milwaukee, we can work with you to make sure you’ve got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable. Just give us a call at 414-744-6614 or send us a note at info@insurancecentermilwaukee.com. We want to help you meet your goals, and make sure what’s important to you is protected!

College Graduation – Insurance Tips

Protect your college grad with the right insurance

College graduation is an exciting time for students and their parents alike.  While the graduate is focused on job offers and first-job jitters, it’s a time of major transitions and it’s essential to prepare for what comes next.

One area new college graduates need to address is insurance.  At the Insurance Center of Milwaukee, we know insurance can be a confusing topic.  We also know that seemingly small missed details can result in very large losses.  We want to ensure your college graduate is protected before heading out into the real world, so we have compiled the following pointers.

 

  • Review your family’s current insurance. The first step when considering insurance for your new graduate is evaluating the coverage you have currently.  Make an appointment with your agent, who can advise on whether it’s appropriate given the pending changes, and whether it will cover your son or daughter.
  • Know the law. Most states require drivers to have auto insurance, and most of those have minimum policy limit requirements.  Consult with your agent, to make sure they are covered adequately.
  • Read your lease. Many apartment, condominium and home rental properties require tenants to maintain renter’s insurance, which covers the contents of the home in the event of a robbery, fire, liability claim, or specified other losses. Make sure you know the terms of your son or daughter’s new lease.
  • Don’t end up liable. Any renter or owner is exposed to liability risk. To ensure there is adequate coverage in the event someone gets injured on your son or daughter’s property, speak with your agent about liability insurance.
  • Don’t gamble! Never go without. It’s simple: your son or daughter should always have insurance in place. Be sure to discuss with your agent what types they need.

We, at the Insurance Center of Milwaukee, congratulate you on the graduation of your daughter or son!  Please contact us with any questions at 414-744-6614.