Renters Insurance: What it Does and Does Not Cover

What is renters insurance? Renters insurance is a must for anyone living in an apartment or other rented home. We’ll cover all of the basics including renters insurance cost, what it covers, and more.

What is Renters Insurance?

Like all forms of insurance, renters insurance exists to help one party protect themselves from financial loss. In this case, it’s helping protect tenants from losing money due to personal property damage, legal liability, or theft. Whether you’re renting a house, apartment, townhouse, you should consider getting insurance to protect your belongings.

 

What is Covered by Renters Insurance?

There are several main areas where you get protection:

  • Personal property- if your personal belongings get damaged or stolen, the insurance policy will cover the cost up to the limits of your policy. 
  • Additional living expenses – if you’re renting a home and it becomes uninhabitable due to something that is covered by the policy, it will help pay for you to live somewhere else for the time being.
  • Medical coverage – if a guest gets injured while on your property, your insurance may cover some of their medical expenses. 
  • Personal liability – if the property gets damaged or someone gets injured on the property, your policy can cover liability costs including associated legal fees.

 

How is Renters Insurance Different from Homeowner Insurance?

That’s a good question – it’s one we partially addressed in a recent article about the benefits of homeowners insurance.

The short answer to your question is that renters insurance only applies when you are renting a property as a tenant. It doesn’t matter what kind of living space you’re renting, just that you are paying rent to live in a home owned by someone else. 

Homeowners insurance requires you to own the home you’re living in. Again, it doesn’t matter what type of home – you can get homeowners insurance on a detached home, condo, townhouse, etc.  

In general, there are a lot of similarities between these two forms of insurance. They both protect your property, provide loss of use coverage, and can help with personal liability or medical payments if the need arises. When you become a home buyer, your mortgage lender will probably require you to get homeowners insurance to help protect the home. Why? Because the mortgage company is giving you a lot of money – it wants to make sure the property is protected!

 

How Much Does Renters Insurance Cost?

The personal finance site Nerdwallet.com evaluated how much renters insurance costs in each state. The good news is even in the most expensive state (Louisiana), you’re only expected to pay about $22 per month. 

Most states cost a bit less, such as California which is still on the higher side at $18 a month. 

Are you willing to spend $18 a month to protect your stuff? Most people are – that’s the equivalent of just one or two meals from In-N-Out! 

 

Is There Anything Not Covered by Renter Insurance?

The short answer is yes. While renter insurance covers a lot of things, it won’t cover every single possible event. 

For example, most renters insurance policies do not cover floods or earthquakes. If you live in an area that is prone to these types of natural disasters, pay close attention to the policy you sign up for! 

Other things can happen to your property that aren’t covered, too. If you get pests in the home such as rodents or bed bugs, your policy probably won’t cover any damages.

Did your car get damaged in a storm? Unfortunately, your renters insurance policy won’t cover that. No, a homeowner insurance policy wouldn’t either. You’d need to have a car insurance policy for that. 

You should also know that if you have a roommate, their stuff is not covered under your policy unless they’re listed on the policy. 

 

Conclusion

Do you have any other questions about renters insurance? Send us an email and we’ll be in touch as soon as possible!

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Does Homeowner’s Insurance Cover Jewelry?

Does your homeowner’s insurance cover jewelry? Chances are good that it does, but there’s a catch. Most policies only offer basic coverage, so the dollar value isn’t very high. If your jewelry collection is worth a pretty penny, your current policy may not be enough to cover it all. Here’s where the jewelry floater may be perfect for you.

What is a Jewelry Floater?

A jewelry floater is supplemental coverage for your jewelry. 

Who Needs a Jewelry Floater with their Home Insurance?

The answer to this question depends on three things:

  1. What is the current value of your jewelry?
  2. Are you buying more jewelry soon? After all, Valentine’s Day is this month.
  3. What does your current policy cover?

Let’s say you currently own about $3,000 worth of jewelry, you’re about to buy a $500 ring for Valentine’s Day, and your policy only covers $1,500. In that case, you may want to consider a jewelry floater since your current coverage only covers $1,500 of the $3,500 total value. 

On the flip side, maybe you own $1,000 worth of jewelry and the necklace you’re buying this month is worth $300. In that case, your $1,500 worth of coverage is more than enough. 

That said, there are other factors to consider besides just the dollar values. 

What Does a Jewelry Floater Cover?

Every policy is different, so it’s hard to generalize, but one big thing to think about is accidental loss. 

Most homeowner policies don’t cover accidental loss. For instance, if you go hiking and your ring falls off, your policy will most likely not cover accidental loss. You’ll need to pay completely out of pocket to replace it. The alternative, a jewelry floater, may cover accidental loss. In that case, the insurance company may pay for the new ring. 

People lose jewelry all the time. Sometimes it goes down the sink, tub drain or toilet. Other times it just falls off while you’re walking down the street or at the grocery store. You just never know. 

If you choose to schedule your jewelry so it’s covered, you’ll have more peace of mind that your investment is protected. 

What Does it Mean to Schedule Individual Valuables?

When you purchase a floater, you’re essentially “scheduling” your valuables. This means you’re protecting them from loss, but there are a few steps involved. Before you’re able to cover the items, you need to have them professionally appraised. This verifies the items you’re covering are worth the value you claim on the insurance policy. 

Ask your insurance company for a reputable appraisal company or do a search on Google to find one in your area.

The Pros and Cons of Jewelry Floaters

Just like any insurance policy, each side of the coin has one main pro or con. 

The pro of investing in a jewelry floater is peace of mind. You paid a lot for your jewelry, and this additional coverage will help you sleep at night knowing your investment is protected.

The con is the cost. Some people choose to forego a floater because they don’t want to pay the premiums involved. 

For some personalized advice, just send us an email at info@partnersdirectins.com or give us a call at (877) 600-7347. We look forward to helping you!

Courtesy of Cuselleration

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4 Reasons Why Health Insurance Will Be So Expensive in 2020

Why is health insurance so expensive? According to the Health System Tracker, the total health spending of a family of four with employer insurance coverage is about $22,000. Ten years ago, that number was closer to $15,000. 

So what is causing these rising costs? The healthcare system is very complex, so a lot of factors come into play. From a high level, here are just a few that are driving the rise. 

High Administrative Costs

The United States is a big country with a lot of people.  That naturally leads to a lot of companies to support those people, including health insurance companies, hospitals, and doctors’ offices. All of these companies have to work together, but that gets complicated. For example, a hospital system has to both negotiate and execute the terms it works out with each insurance company it accepts. That takes a lot of man-hours, which leads to high costs. 

It’s not just hospitals though – think about urgent care and doctors’ offices. Even though they usually have small administrative staff, they still need to spend time processing these insurance claims. That time costs the office money, which gets passed onto the patient and their insurance company. 

Specialists Cost More

The great thing about healthcare in the U.S. is the high number of specialists we have. If you live close to a city, you likely have the ability to choose which specialist you want to go to. For example, you may have access to 10 different cardiologists. That’s great, as Americans like feeling in control of who they go to for health care. 

There’s a downside to having so many specialists though. Doctors who focus on one thing are more expensive, increasing our overall healthcare costs. Someone has to pay the high fees these specialists charge, and those fees get passed onto the insurance companies and patients. 

Drugs are Expensive

Pharmaceutical companies spend billions of dollars on research every year. They need to invest a lot of money up front to develop the next game-changing drug. When the drug finally hits the market, they charge high prices to recoup the upfront costs they had invested. That means both patients and insurance companies pay an arm and a leg for the medicine. 

Some entities, such as the Veterans Administration and Medicaid, are able to negotiate lower prices of drugs. Medicare doesn’t have that ability, and it costs Americans billions of dollars a year. 

People Live Longer

Perhaps the biggest driver of increasing healthcare costs boils down to this – we live longer. In 1919, the average lifespan for a female in the U.S. was 56 years old. By 1998, it was 79. 

As our society grows older, it makes sense we’ll need more and more healthcare. Our bodies break down and need modern healthcare to restore them. From drugs to surgery, the miracle of living today is our ability to greatly extend the lifespan of humans. The price we pay is in healthcare costs, which expand to impact both young and old. Maybe this trend will decrease if Americans as a whole started eating and exercising better, but it’s difficult to change the culture of such a big nation. 

Will health insurance be more expensive in 2020? Most likely. Nothing has changed in 2019 that shows the trend will reverse. The good news is you can improve your chances of getting a great, affordable plan if you pick the right partner. That’s where we come in.

Send us an email at info@partnersdirectins.com or give us a call at (877) 600-7347. We’d love to help you navigate the insurance world and help you get a great, affordable plan. 

Courtesy of Cuselleration

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The Effect of California’s 2018 Deadly Fires on Insurance Companies

Across California, the wildfires were beyond devastating last year. With the Camp Fire in Northern California and the Woolsey Fire in Southern California, it felt like the entire state was burning.  

More than 7,000 residential and commercial structures were destroyed thanks to heightened wildfire activity throughout the state. As a result, it is becoming more difficult than ever for California homeowners to obtain and keep fire insurance.

The California Department of Insurance has received nearly forty thousand claims related to the Camp and Woosley/Hill fires with total incurred losses exceeding approximately nine billion dollars, as of last December.

As California wildfires grew larger and more intense last year, most insurance companies were not renewing policies for customers who live in areas that were too risky to cover. The state estimates that over one million homes in California are at high risk for wildfires.  

A California Department of Insurance report learned that the number of homeowners in the wildland urban interface, who spoke out about getting dropped by their plans has tripled from from years 2010-2016. These complaints about increased premiums have risen two hundred seventeen percent.

The state’s most vulnerable homes are not located in cities. They are instead found in areas defined as “wildlife-urban interface.” These homes are built just close enough to woodlands so that a spark from a tree can set a whole town on fire. As more people continue to live in and move to these disaster-prone areas, the amount of property at risk and the subsequent cost will also increase.  

Insurance companies do not have the same recourse and some have been choosing to not renew policies for customers who live in areas that are too risky to cover.  A standard homeowners insurance policy will include coverage for fires. But if you live in what is classified as a high risk area, you will either need to pay more for coverage or obtain insurance through surplus lines. Surplus lines are policies that protect against financial risk that regular insurance companies won’t take on and are not required to follow same state regulations.

To protect homeowners from high rate increases, the state requires insurers to justify increases with reams of data showing that their cost of paying for claims is rising. And after a catastrophic year of natural disasters, insurers are not allowed to increase rates right away. They instead must phase in the increase over twenty years.  

Moving forward, insurance companies will be more creative with their policies. As a result, more homeowners need to purchase additional coverage to make sure they are protected, or move out of problem areas.

There are millions of California homeowners who need to take the right steps to protect themselves and their homes in the event of a similar tragedy.

It is important to have the right insurance broker working with you, who can walk you through these more nuanced provisions and find the right plan for you. This will make a big difference when something catastrophic happens.   

Do you have a question about protecting your home from wildfires in the future? Click here to contact Partners Direct Insurance today!

Courtesy of Cuselleration

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Why Personal Umbrella Insurance Is Important

Umbrella insurance is another type of liability insurance. It gives you, as a policy holder, an additional liability protection against any lawsuits and other claims that could go against you. Umbrella insurance starts to come into effect when your base liability limit is no longer able to cover everything.

This type of insurance is important because it can cover your back if you run into an issue that maxes out your personal liability coverage. It serves as a good protection during property damage or injury litigation, and can cover any additional legal costs if you are facing a lawsuit for damages to an individual or their property.

You might not think umbrella insurance is important, but lawsuits are a common affair now and lawyers are working hard to secure more and more money for their clients. Homeowner, car, and boat insurance coverage have a limit when it comes to liability.

Since liability insurance covers costs related to medical bills, rehab, or lost wages, expenses can quickly add up after an incident. Most traditional standard liability policies are just not enough to cover in most cases.

Umbrella insurance can help you cover the expenses if your insurance is not able to account for everything. Many states have laws that hold individuals accountable for bodily injury and other property damage. Most incidents of this nature will also come with lawsuits, which can be very expensive.

Click here to learn what condominium insurance covers!

As a result, it is important to have as much insurance on your side as possible, since you never know how much a judge would award in damages to someone else. Personal umbrella insurance is a fact of life for every policy holder, no matter their wealth or income.

Personal umbrella insurance policies are beneficial because they can come at a low price. Some can cost as little as $100 per year for $1 million dollars worth of coverage. This makes it a reasonable and smart investment based on the return, especially compared to other insurance policies.

If you are interested in securing a personal umbrella insurance policy, you should sit down to think about how much of it you will actually need. Consider the value of your assets, any potential loss of income, and any other risks to help you decide on the policy amount that would be appropriate for your situation.

It is important to think about your potential loss of income and wages because people with no assets to their name could be forced to pay off damages with future earnings.

Do you have a question about personal umbrella insurance? Click here to contact Partners Direct Insurance Services today!

Courtesy of Cuselleration

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5 Safety Tips to Protect Your Home This Holiday Season

The holiday season gives the feeling of joy and is oftentimes spent with close family or friends. Even though the season is usually festive, things can unfortunately turn sour fairly quickly. Thieves and criminals are usually watching homes that get a lot of packages and are even willing to break into homes and steal if they think you are buying a lot of expensive gifts.

Disasters such as broken pipes or an electrical fire are also scenarios that do not go away during the holiday season. As a result, make sure to take the time to be careful and take all available safeguards to protect your home against loss and damage or get yourself into trouble.

Here are five different safety tips to protect your home this holiday season.

1) Be careful about gifts you are buying and shipping.

Many people leave expensive gifts in their living room, presenting an inviting target for criminals who break through a door or window to steal. Many police forces have a hard time tracking down these types of criminals due to a lack of other witnesses and evidence. Make sure to keep any pricey gifts hidden in your house and away from windows until they are gifted.

2) Take care of your Christmas tree.

Many fires start inside homes during the holiday season because of a dry Christmas tree that catches fire. Be sure to water your tree everyday and purchase one that is still fresh. Trees that have dry needles, look brittle, and have wrinkled bark should not be purchased. Once your tree is inside your home, keep any electrical items and fire away from the area it is in.

3) Take the time to purchase high quality Christmas lights.

Older lights usually take up more power and are a major fire risk, especially if they have frays and breaks in the cord. The best Christmas lights are ones that emit low heat and have the proper certifications. Before putting up lights, study the cords closely to see if there are any broken sockets and be sure to turn everything off once you leave the home.

4) Protect your pipes once the weather gets really cold.

Colder nights can cause pipes inside of your house to break, which can be a repair that totals in the thousands of dollars. You can take steps to prevent this risk. Drain any water from your sprinkler lines before it freezes and remove any outside hoses so you can shut off the inside valves. If you have a basement or garage, spend the money to get pipes in these types of areas properly insulated with sleeves or heat tape. Just make sure any insulation is properly certified to work for the particular pipe.

Click here to learn what condominium insurance covers!

5) Keep watch over food in the kitchen.

Cooking fires and mishaps often lead to a large amount of the fires seen on Thanksgiving, and the same story continues on Christmas if people are not careful. Never leave anything cooking unattended and keep kids away from the kitchen if you are working. Smoke alarms should be in good working order at this point in the year as well.

Do you have a question about how to protect your home this holiday season? Click here to contact Partners Direct Insurance Services today!

 

Courtesy of Cuselleration

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Why You Should Offer Employee Benefits

Photo credits: Shutterstock/RawPixel.com

Giving employee benefits is a great way to promote productivity and a good workplace culture for everyone on staff. Some people choose to just offer the bare minimum in order to stay in line with the law, but those who go above and beyond with benefits can help their company in a big way.

One of the best reasons to offer employee benefits is to attract more and better talent to your company. The best employees are juggling multiple offers for jobs, and enticing benefits can help your company stand out when it comes time to make a decision. Good employee benefits will also make your company known in its industry and help you retain talent for the long term.

Benefits like comprehensive health plans, retirement plans, and generous paid vacations and holidays shows employees you believe in the company enough to invest into employees, and also engenders a sense of stability that will boost office culture.

Another good reason to offer benefits is to end the revolving door of employees coming in and out. Good benefits will entice people to stay on staff and become company veterans, which will help newer employees get properly trained and mentored. Offering generous employee benefits shows employees you are looking out for their best interest and motivates people to stay on top of their jobs for the long term.

Employee benefits go a long way towards boosting general morale and workplace culture. If employees have the chance to save for their future  with healthcare plans or take some time off with paid vacations, they will come to work more energized and ready to be productive, which contributes to a good office culture. Bad attitudes or a distrust in company culture will quickly put a damper on overall morale.

Click here to learn the 5 things to know about car insurance!

Employee benefits like good healthcare coverage and paid sick days will encourage workers to put their health first, so they can come to work in good condition. People with good health insurance are more apt to practice good preventative healthcare measures like getting checkups and eating right, which means they will be better off for the long term.

Paid sick days ensures sick workers will stay at home and not come to the office ill, which could lead to a spread of germs that makes others sick. An empty office due to sickness is a scenario that a boss does not want to come face-to-face with.

Finally, employee benefits encourage people to take pride in their work and remain loyal to the company. Harder and smarter workers usually result in better productivity, which will help foster higher quality work.

It might seem tough to go the extra mile to offer good employee benefits, especially since the short-term costs can be high. Offering good health insurance or paid time off can lead to bigger expenses for the company, especially if you have a lot of employees.

But keep in mind the long-term effects will pay off in a big way and set your company up for further success down the road. You will be seen as an industry leader thanks to a steady and happy workforce.

Good benefits will also help rope in top talent that can offer dynamic and innovative perspectives to your company, especially if other competitors do not have as good of a package.

Would you like to provide benefits for your employees? Click here to contact Partners Direct Insurance Services today!

Courtesy of Cuselleration

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What Does Condominium Insurance Cover?

Condo insurance gives people property coverage and helps protect against claims of liability. Most of these policies take care of the actual unit while a master policy for the condo association covers other common areas.

It is important to note that condo insurance does not cover everything, so you will need to do research about what additional coverage might be required after taking out a policy.

In general, the condominium  association policy will cover the outside structure, roofs, walls, and elevators in different common areas. This type of insurance policy is split up across all condo owners and is paid through fees. This means damage of the exterior of a condo building would be the responsibility of the wider association and not individual owners.

Insurance for condos usually comes in three different types. Bare walls coverage is a limited policy that covers collectively owned property and structural items in common areas. Single entity coverage is usually seen as an extension of bare walls and offers coverage for items inside of individual condos. The third, all-in coverage, covers all property that is part of the entire structure and also accounts for any improvements and additions. This type of policy means an individual owner would just have to buy more coverage (if needed) for their own personal property.

As a result, it is important to get a copy of a condo association’s declaration page to get an understanding about what type of a policy the association has and what it actually covers.

Many associations will require owners to have some sort of insurance policy or institute minimum coverage limits even if insurance is not required by law. It is good to get familiar with all types of condo coverage because some features could actually be covered by both your insurance and an association’s policy. Knowing the coverage limits for each lets you understand if damage could fall under a master policy, or if you would have to file a claim through your own coverage.

When it comes time to choose condo insurance for a specific unit, be sure to get a clear value of the property. Insurance policies will pay up to coverage limits and most people are going to want a policy higher than the replacement cost value to be sure they can get all available compensation if it is needed.

Otherwise, be sure to account for the financial costs concerning changes or renovations that you have made. If you decide to re-do a condo’s kitchen after living there for a few years, you should adjust your insurance coverage since the entire unit will now have a different value.

Condo insurance does not cover damages from earthquakes, floods, and sinkholes. You will need to buy more coverage if the region you are in is at risk for these types of natural disasters. A lot of policies are not going to cover damages if the condo was uninhabited for a specific time.

Click here to learn why it’s important to review policies every year!

Most insurers automatically assume uninhabited condos are riskier because the propensity for break-ins and theft is higher. This becomes a problem when you are not around because others might not be checking up on the property or might not know that there was anything wrong in the first place.

If you are planning to be away from your unit for more than a few weeks, take out vacant condo insurance to make sure you still have protection and coverage.

Do you have a question about how to obtain condominium insurance? Click here to contact Partners Direct Insurance Services today!

Courtesy of Cuselleration

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5 Things to Know About Car Insurance

Car insurance can be a tricky thing. Even though it’s a great safeguard in case you get in an accident or suffer damage to your vehicle, it’s also required across much of the United States. It can be difficult to decipher what type of policy that you need, especially since you’ll have to take note about if it satisfies legal requirements for insurance.

Here are a few things to know about car insurance for your own knowledge, and to help you find the right policy for your needs.

Insurance Coverage Varies: Drivers in California need liability insurance. This is to protect you and other drivers in case of an accident. Coverage usually includes limits for injuries per person, injury per accident, and other property damage.

Cost Depends on Statistics: Insurance companies often assign prices for different coverages based on statistics. For example, teenage drivers have statistically been shown to be high-risk drivers, and insurance companies charge for coverage accordingly.

Others will use your driving record and even your zip code and credit score to come up with a rate that’s based on these types of statistical metrics. Some states limit what type of statistics insurance companies can use to come up with rates. Using a credit score as a risk indicator for insurance is not allowed in California.

Buy Before You Drive: It’s important to secure car insurance before driving, and before the actual car-buying process. Shopping around early for insurance will help you with the car budget because you’ll have an idea about your premium. It’s important to not have a lapse in coverage between policy terms for your insurance. Otherwise, don’t be afraid to switch up your insurance. If you add a new driver, or feel that your rates are jumping up too high, then start shopping around for new quotes.

Click here to learn the risks of not purchasing auto insurance!

You Can Lower Your Rates: It’s certainly possible to lower car insurance rates to a certain extent. For example, maintaining a clean driving record can go a long way towards keeping rates lower in the future. Other strategies include sharing a policy with someone else, bundling car insurance with a homeowners policy, or paying your premiums early. These tips could help you make a stronger case for lower rates in the future, but it is not guaranteed.

Keep these five things to know in the back of your head as you hit the road.

Do you have a question about car insurance? Click here to contact Partners Direct Insurance Services today!

Courtesy of Cuselleration

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6 Myths About Flood Insurance

Floods can be a fact of life for people who are far away from any sort of ocean or river. Rapid rainfalls can quickly lead to flash floods that can damage a home or surrounding property.

Floods can also be a problem even after a relatively mild and weak storm if you do not have a good drainage system around your home and surrounding property.

Many homeowners choose to purchase flood insurance, especially if they live near a large body of water, so they can get assistance with repairs or a total rebuild after a flood. However, there are a lot of myths about flood insurance, so keep reading to get educated on what the truth really is.

Myth: Everyone in a Flood-Prone Area Must Get Insurance

Homeowners are only required to buy flood insurance if they meet a set of criteria.

They must purchase it if their home is in a flood hazard area (1% chance of a flood each year), if the community is involved in the National Flood Insurance Program, and if they purchased or refinanced a home through a federally regulated institution. Homeowners that do not meet this criteria are not required to buy insurance.

Myth: Insurance Is Costly

Contrary to many beliefs, flood insurance is not always expensive. The price will depend on your location, home value, and height off the ground.

Click here to learn why it’s important to review policies every year!

Myth: Taxpayers Pay The Federal Flood Insurance Bill

The National Flood Insurance Program does not spend any tax dollars. The government makes sure the premium rates are set high enough as to cover any claims and operating expenses in a normal year. If a year is particularly bad, then the treasury lends money and just charges an interest rate on top of the loan. The program works to maintain solvency by boosting the accuracy of flooding maps and easing away from subsidies.

Myth: Insurance Is Just For Beach Homes

Many houses that have flood insurance, especially those in the National Flood Insurance Program, are actually away from the oceanside. You should always purchase flood insurance if you can because flood-related damages are not covered by normal homeowners insurance.

Myth: Floods Don’t Really Cause a Lot of Damage

Even though tornadoes and hurricanes often get big headlines, floods actually create more damage in the United States than any other type of natural disaster.

Remember, floods can happen anywhere. They usually occur during a storm where a lake or river rises. Additionally, floods can happen due to the actions and activities of humans, like during construction of roads and houses, if the proper precautions are not taken.

Overall, there are a lot of myths about floods and flood insurance. Flooding is a serious risk to any home and the possessions inside, so smart homeowners will secure insurance to be prepared. Floods can happen anywhere, and can often strike with little warning, so be sure that any insurance adequately accounts for the value of your home and possessions.

Do you have a question about how flood insurance can help recover damage of a home and its possessions? Click here to contact Partners Direct Insurance Services today!

Courtesy of Cuselleration

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