Rutledge Group

The first time most people think about insurance is with their first car or home. But what if you’re renting your first apartment or home? Although renter’s insurance is usually not required by law, it is critical in protecting your personal possessions.

Not only does renter’s insurance protect your personal items, but it can cover the cost of temporary housing should the unit be uninhabitable. It also protects you against liability lawsuits and claims.

For example, if the ceiling in your rented property is damaged by wind, water, snow or hail, the ceiling is your landlord’s responsibility to repair. But your brand new computer or TV that sustained major water damage is not covered under his insurance policy. And, now you’ve got to temporarily move out while they fix the roof, and the new rental is twice as expensive! In both these instances, your renter’s policy would cover the cost of repair or replacement and the additional rent.

Liability coverage is just as important. What if a friend comes to visit and you haven’t cleaned up the water that spilled on the kitchen floor. Your friend falls and needs medical attention. Renter’s insurance will pay for the medical expenses and any litigation that may ensue.

Here are three things to consider before purchasing your renter’s insurance policy:

1. Dollar Amount of Coverage: This is a leading factor in the price and coverage. A dollar amount is not placed on each piece of property; instead a fixed amount for all of your possessions will be determined.

2. Deductible: How much you are willing to pay out of pocket before your insurance kicks in?

3. ACV(Actual Cash Value) or Replacement Cost: A basic policy will pay you ACV, which is the value of the property at the time of loss. But, if you opt for replacement cost you will get an actual replacement. For example, if your computer is ruined, you will be reimbursed the cost of a comparable new model.

According to the US Department of Justice, an American home is burglarized every eight seconds. The greatest weapons against burglary are light, time and noise. It’s a lot harder for a burglar to break into a home that has a well-lit yard, and if it’s difficult or noisy to enter.

Here are 9 things you can do to burglar-proof your home and safeguard your belongings

1.  Secure All Doors And Windows Whenever You Leave Your Home.  Sounds simple, but failing to lock all doors and windows when leaving home, is one of the most common mistakes leading to home robberies. 

2.  Leave a Light on in One or Two Rooms When You Leave Your House at Night.  This will give your home the appearance of being occupied when you are away.

3.  When on Vacation, Rely on a Trusted Friend. Tell them where you’ll be and how to reach you. Ask them to pick up your mail and newspapers, hand bills, litter, packages, or anything else that would make it appear that you’re not a home.

4. Leave a Radio Playing on a Talk or News Station. This will make it sound like someone is home.

5.  Never Open Your Door to a Stranger.  Home invasions are becoming more commonplace. Sounds simple, but too many people will allow in strangers posing as power company representatives, or other utility company workers. Ask for identification and if you’re still in doubt, call the company for verification before letting anyone in. Keep your door closed and locked unless you know who is on the other side of it.

6.  Always Keep Your Shades and Drapes Drawn at Night.  A lighted house with open drapes is like a fishbowl at night, exposing its contents to every passerby.

7. Keep Your Home Well Lit. Mount exterior lights out of reach, in your yard and on your home

8. Use Grates and Dead Bolts. Discourage burglars by making it time consuming to break into your home. Simple security devices such as: grates, dead-bolts, and alarm systems will make a usually scare away any burglar.

9. Install an Alarm System. Noise is the number one deterrent for burglars. The most effective ones are the systems that will ring at an outside service, who will then contact the police.

Make Sure Those Valuable Holiday Gifts Are Protected

Did you receive new computer equipment this holiday season? How about a new piece of jewelry? Musical instruments, high quality cameras, golf clubs and even fine art are popular gift items.

If you were given a valuable gift, you need to take steps to protect it against loss.  Although most homeowners insurance covers a certain amount of personal property, many high-value items are excluded from your policy.

Some items you should consider getting additional insurance on include:

• Jewelry
• Furs
• Cameras
• Musical instruments
• Silverware
• Golfer’s equipment
• Fine arts
• Collectable stamps
• Rare and current coins
• Computer equipment

Consider a Scheduled Personal Property Endorsement, or a Personal Articles Floater. These endorsements list each article separately, and assign a specific value to them for which they will be covered. Most endorsements insure for actual cash value or cost of repair. This won’t cover the total cost if you need to replace the item down the road. If you want to make sure coverage is adequate to replace it, you may want to opt for an agreed value loss settlement. That means that you and your insurance company agree on a certain amount to be paid in the event of a loss instead of the standard amount listed on the endorsement.

Fine arts are almost always insured under an agreed value, as they are usually unique and their value is difficult to determine.

As with most insurance policies, there are some things that aren’t covered, like damage due to wear and tear, or damage caused by insects.