Because you never know. Let’s face it, anything could happen, right? You have no idea when you’ll need insurance. That’s why it’s so important to plan ahead and get out in front of threats to the things you care about.
When it comes time to repair or replace your property, insurance becomes critical to your peace of mind. Its basic function is a transfer of risk aimed at reducing financial uncertainty and making accidental loss manageable.
Liability insurance is exactly what it sounds like. It protects you in the event that someone has an accident on your property. The good news is most standard renter packages come with $100,000 of liability coverage. Some examples of accidents that this type of insurance pays for are things like you leaving the garden hose on the sidewalk and someone tripping and falling because of it. Or perhaps you have a kitchen fire and it damages the apartment you live in.
Let’s hope you never encounter any of these events, but fire and theft are the most common causes of loss by renters.
You might ask what is a deductible? Well, it’s a co-payment prior to your insurance company paying on a loss. When deciding on a deductible (most insurance companies offer $250, $500, $1,000, $2,500 deductible options), When deciding on a deductible most insurance companies offer $250, $500, $1,000, $2,500 deductible options.
Ask yourself what kinds of things can happen to your home. Tornados or fires, floods, wind damage … Now, how much cash do you have easily accessible? Do you have a savings account with $1,000 in it? If your property were damaged by fire would you be able to put that money toward the damage? Whatever you decide, don’t go with the cheapest coverage based on that alone … a reputable company will go over your coverages until you understand them. When you know what you are paying for, and what the limits are, as well as exactly what is covered, it’s a lot easier to understand.
There are few things harder to replace than one’s home. Think about it for a minute. Who can afford to lose everything they have ever worked for? Homeowner’s and renter’s insurance provides financial protection against disasters. A typical policy insures the home itself and everything in it. Homeowner’s insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people, including damage caused by household pets.
Damage caused by most disasters are also covered but there are exceptions. The most significant are those damages caused by floods, earthquakes and poor maintenance. You must buy additional policies for flood and earthquake coverage while maintenance-related problems are the homeowner’s responsibility.
Did you know the average person has between $20,000 – $30,000 worth of personal property – flat screen TVs, furniture, military uniforms and other clothing, electronics – everything. Don’t forget your items in storage, your closets and other places. Most people are shocked at how much property they actually have.
Use your camera to take pictures of all of your property to create an inventory. Assign a value to each item. Jump online and search the large retail department stores, etc., to retrieve the value of your items. This might take some time, but if you ever have a loss, you will be happy you have insurance. It’s the surest way to get completely reimbursed if you have a loss.
An important side note: ALWAYS get replacement cost included in your policy. Otherwise, if you have a loss, your policy will only pay you fair market value.
So don’t hesitate when it comes to getting the coverage you need.
For starters it’s a legal requirement but how else does it protect you? It protects you against loss if you have an accident or theft. The basic personal auto insurance mandated by most U.S. states provides some financial protection if you or another driver using your car causes an accident that damages someone else’s car or property, injures someone or both. It provides property, liability and medical coverage in the form of payment for damage to or theft of your car. Liability also covers your legal responsibilities to others for bodily injury and property damage, while medical covers the cost of treating injuries, rehabilitation and, in some cases lost, wages and funeral expenses.