Renters insurance: Part 2, additional benefits

So last week I talked briefly about why it’s important to have renters insurance, hopefully I convinced you that it’s a good idea. But if your still not convinced that you need it, let me give you a few more benefits. I guarantee there’s a couple you haven’t thought of.

Basic home insurance policies are typically known by a number. For example HO-4 is the standard number for Renters and HO-6 is the standard for condo owners and each covers losses to your personal property from 17 types of risk:

Fire or lightning
Windstorm or hail
Explosion
Riot or civil commotion
Aircraft
Vehicles
Smoke
Vandalism or malicious mischief
Theft
Damage by glass or safety-glazing material that is part of a building
Volcanic eruption
Falling objects
Weight of ice, snow, or sleet
Water-related damage from home utilities
Electrical surge damage

Some items that are not listed that may require you to get additional policies to cover are earthquake and flood. Now earthquake might not be as big of a deal in our area but depending on where you live, flood might be something to think about. So keep this in mind when you contact your agent.

Also, when you are shopping for renters insurance make sure to look out for the words ACV or “Actual Cash Value”. This basically means what it says, if you purchased something for $500 5 years ago, chances are it has less of a value now. So with ACV coverage you would only get what the current value of the item is worth. It is best to get “replacement cost coverage; this on the other hand, will pay for what it actually costs to replace the items you lost.

Additional Benefits

Here are some additional benefits that you wouldn’t normally think of:

Lets say your home becomes unlivable due to a fire, burst pipes or for any other reason that is covered by your policy, renter's insurance will cover your "additional living expenses." This means your insurance will cover the cost to live somewhere else temporarily while the problem is being fixed.

Here’s another benefit, if you own a waterbed, a waterbed liability provision is standard in most policies, according to Mike Binns, personal lines underwriting manager for Farmers Insurance Co. If your waterbed bursts and the water ends up in the apartment below yours, renter's insurance will cover the damage.

My favorite benefit is the liability coverage. I guess this is my favorite because it is so likely to happen to anyone. If someone in your apartment slips and falls, you're covered for any costs, up to your liability limit. And if this person should choose to sue you, you're covered for what they win in a court judgment up to your policy's limit, along with legal expenses, too, because, according to Binns, your insurance company agrees to defend you under your liability protection provision. Copyright insure.com. All rights reserved.

Well, hopefully I have convinced you by now that renters insurance should be something you put on the top of your priorities to get. And best of all, its cheap to obtain. Were talking FREE in some instances, if you don’t know what I'm talking about, go and look at last weeks article.

I’ll see you next week!

Dedicated to your financial success!

Kenton Becker
kentonb@empireoptions.com
Managing Partner / Land Home Financial Specialist
License # 510-LO-36929
http://www.empireoptions.com/

Renters Insurance, don’t get caught without it.

It truly amazes me how many clients I work with who do not have renters insurance on the home / apartment that they are renting. But most of them don’t truly feel like it is a good use of their money, so for that reason they don’t find the value in it. It really needs to be something that you make as important as car insurance, life insurance or health insurance.

There are so many benefits to having renters insurance vs. not having it. Plus the cost is amazingly cheep. In fact I would bet that if most of you put your car insurance with the same company that you would have renters insurance through, you’re savings on grouping them together would literally make it a free service.

Talking with my friend Kevin Hauglie with Hauglie Insurance, he says that most clients that he works with that put there auto and renter’s policies together are able to get a large enough discount on the auto insurance that their renters insurance is practically FREE! Let’s face it, renters insurance by itself is only about $15 per month! So were not talking about a lot in the first place.

I think the real problem is that most renters don’t really know that they need it. They think that if a fire is started in their home / apartment then the homeowners insurance would cover it…wrong. If you cause the fire then you would need your own insurance to cover the costs. This could be a very costly mistake to make…even if it was a small fire, the cost can add up quickly.

This is the one that always gets me, renters insurance covers personal items stolen from your home or in some cases even your car! This means that if you have someone who breaks into your home or car and steals your personal items (items that are not attached to the car) then your renter’s insurance policy will cover that. SO how many of you have had your car broken into? I’m sure a lot!

Here’s the biggest one in my opinion, renters insurance will cover your liability. Let ma ask you a question…if anyone steps foot on your property and trips or falls or has an accident of any kind and decides to sue, who would cover it? Don’t point the finger at the landlord…in most contracts it says that you must hold them harmless. The responsibility would fall on you! In the sue happy environment we live in…this is becoming more likely of a scenario.

So you have to think, is it really worth it to NOT have renters insurance, especially since we stated earlier that it could be essentially FREE! Why would you not have it? Protect yourself, your family and all the things that you have worked hard for. Get renters insurance.

If you have more questions about renters insurance covers and the cost and additional benefits, shoot me over an email to kentonb@empireoptions.com, I can get you in contact with Kevin Hauglie. He is by far one of the best insurance agents that I have come across and he has been doing these successfully for over 20+ years. Amazing! So just let me know and I will make sure you get well taken care of.


Dedicated to your financial success,

Kenton Becker
kentonb@empireoptions.com
Managing Partner / Land Home Financial Specialist
License # 510-LO-36929
http://www.empireoptions.com/

Things My Mother Taught Me

I thought it would be fitting to dedicate this week’s email to all the wonderful Mom’s out there. So in honor of Mothers Day, I have put together a list of all the things that Moms have taught us growing up. I hope you enjoy it.

Our Mom’s taught us…

LOGIC..."If you fall off that swing and break your neck, you can't go to the store with me." MEDICINE..."If you don't stop crossing your eyes, they're going to freeze that way."
TO THINK AHEAD..."If you don't pass your spelling test, you'll never get a good job!"
TO MEET A CHALLENGE..."What were you thinking? Answer me when I talk to you...Don't talk back to me!"
HUMOR..."When that lawn mower cuts off your toes, don't come running to me."
BECOME AN ADULT..."If you don't eat your vegetables, you'll never grow up. GENETICS..."You are just like your father!"
ROOTS..."Do you think you were born in a barn?"
WISDOM of AGE..."When you get to be my age, you will understand."
ANTICIPATION..."Just wait until your father gets home."
Best of all JUSTICE..."One day you will have kids, and I hope they turn out just like YOU…then you'll see what it's like."

I want to say Happy Mothers day to each mom that is receiving this. We all appreciate everything you do.

Happy Mothers Day!


Dedicated to Your Financial Success,

Kenton Becker
kentonb@empireoptions.com
Managing Partner / Land Home Financial Specialist
License # 510-LO-36929
http://www.empireoptions.com/