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renters insurance

Renter’s Insurance

If you’re considering living in an apartment or currently reside in one, it’s important to make sure you have renter’s insurance. Renter’s insurance is an often-overlooked risk management tool for an overall financial plan, but it’s critical for protecting your assets and liability. Renter’s insurance covers your personal property in your apartment. This includes clothes, furniture, electronics – pretty much all your stuff. It also provides liability coverage. This means that if you’re liable for damages to the apartment complex, someone’s injured in your apartment, or you’re liable for other damages, the liability coverage provides an amount to help pay for these damages. In other words, if you’re found liable or negligent it doesn’t come out of your pocket. The renter’s insurance pay for it. A typical renter’s insurance policy can provide $15,000 of protection for your personal property (you can get more if needed) and $100,000 for liability coverage. […]

When It Rains…

The other night I was awoken by a pretty severe thunderstorm. Bright lightning and heavy rains lasted throughout the night. By daybreak, it had rained nearly three inches in the span of six hours. Naturally, I thought, “time for an article.” The heavy rain made me think about what would happen in the event of a flood. The reason why is that most home insurance policies specifically exclude damage from flooding. That is, if water seeps into a basement from heavy rains and damages the area, homeowner’s insurance would not apply. A specific flood insurance policy is needed. However, flood is not the only peril home insurance policies will generally exclude. In many cases, most home policies will exclude the following perils. Flood Earthquake Neglect Termites War Intentional loss Additionally, most home policies (including renters or condo insurance) will exclude or limit coverage on personal property for the following. Business […]

Are You Protected?

I recently received a call from a friend of mine asking questions about his newly acquired rental property. He had just moved from a duplex where he owned the entire duplex and lived on one side. Having purchased a home and finding a new tenant to replace where he was living, he was surprised and upset when his insurance on the duplex nearly doubled. After some debate he decided to reduce the replacement cost of the building that the insurance company had placed on the building from $500,000 to $250,000. This, of course, sent red flags flying in every direction in my brain. His first question to me was why his insurance nearly doubled. The reason was that since he was no longer a tenant in his own duplex the insurance company assesses that as more risky and adjusts the premium accordingly. He further commented that the replacement cost was […]

Holy Priceless Collection of Etruscan Snoods

Pretty weird title right? It actually comes from the classic Batman TV series starring Adam West and Burt Ward. Burt Ward’s character, Robin was notorious for his exclamations categorizing different objects or dilemmas as righteous. How does this relate to financial planning? We all have our snoods that we collect or have value to us. When we purchase renters or homeowners insurance, we often assume that our personal property is covered under the specified limits on the policy. Normally this is 50% of the home’s insured value. But it pays to read the fine print. Most policies will only allow for coverage for certain items and only for specific limits. For example, a typical home insurance policy will cover jewelry only up to $1,000 total – for all of the jewelry you own. In order to have coverage for a specific item of jewelry such as a wedding ring, engagement […]

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