Personal Coverage

Archive for the ‘Homeowners Insurance’ Category

Renters Insurance Gets No Respect

Thursday, November 19th, 2009

It has been in the news over and over again. That’s a good thing because repetition may be what it takes to get the message into the hearts and minds of renters AND Landlords. Renters insurance is one of the most underutilized insurance products on the market today. It is easy to obtain, offers some great coverages and is very inexpensive.

News articles that appear in newspapers or personal finance magazines always talk about the importance of protecting belongings as well as picking up some protection against lawsuits. While this is certainly the crux of the product we would like to mention some of the situations that we often see where renters insurance fills coverage gaps that exist because of an individuals living situation.

The most common is the apartment rented by two or more people. Next we see a home owned by one person and their partner lives in the home as well. Lastly is a homeowner who rents out a portion of their house. What all these living situations have in common is the potentail for one person to have limited coverage or no coverage at all.

Homeowners insurance (Renters insurance is a form of Homeowners insurance) will provide some coverage at the discretion of the insured for property of others while ON the residence premise of the insured. So if in our first two examples the policyholder chose to have the coverage of their partner/roommate covered an insurance adjuster might go along with it. I can’t speak for all homeowners policies on the market today so reading your policy would be critical. Although this sounds nice there is no coverage for OFF premise exposures for the partner/roommate. So if something is stolen from a vehicle or lost on vacation coverage would not apply. This also does nothing for Liability coverage or Loss of Use coverage which pays hotel and restaurant charges if the apartment/home cannot be lived in due to a covered loss. The other issue is in a severe loss the policyholder might not have enough insurance for their own items let alone the belongings of a roommate/partner. Bottom line is for the partner/roommate relying on the policy of the insured for coverage is not a great idea and renters insurance solves all the problems.

For those who rent out a portion of their home exclusions exist for roomers, boarders and tenants of the insured. The choice of extending coverage is not usually an option. If family members happen to be the roomers or boarders coverage could be afforded. So for unrelated parties a Renters policy works nicely to fill the coverage gaps and gives the landlord/property owner the piece of mind that the activities of these parties are insured elsewhere.

The cost of Renters insurance can usually be had for under $150 per year and often times we see policies that are $100 or less. Call us if you would like to discuss your individual situation or check out or site on Renters Insurance at www.InsureRenters.com.

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So you think your Home Business is Covered

Thursday, October 15th, 2009

If you own a home based business you may find your Homeowners insurance falls short in terms of coverage. Home businesses are substantial in number. Statistics I have seen put the number in the millions and the sales in the billions.

Homeowners insurance was not designed to cover business exposures. In fact there are exclusions and limitations in the homeowners policy. Many policies consider a business a trade, profession or occupation engaged in on a part time, full time or occasional basis. There are also compensation amounts that may be as low as $2,000 that further refine the definition. The definition of business may vary depending on the carrier that writes your insurance but suffice it to say very few activities will fit through the definition to obtain coverage.

Once an activity is defined as a business your homeowners policy will have very little liability and property coverage to offer. Business property may be limited to $2500 while in your home and $500 while off premise. Again, these amounts may vary depending on which company you have chosen for coverage. Liability arising from the business will be excluded. Riders or endorsements can be attached to the home policy to work around the business definition but they should be explored carefully to be sure they fit your situation. If your business is a significant percentage of your income your home policy will offer no way to cover a loss of business income in the event of a loss at your home.

A better way to handle the exposure is to purchase a policy specifically designed for home based businesses. Some inusrance companies can even endorse a rider onto an existing home policy to cover the exposures. These home business policies are structured very much like a traditional commercial policy and often times have the advantage of lower minium premium levels than the commercial market. These policies can have additional insureds added if required by contract and offer higher limits of liability. Policies usually are underwritten based on the type of business. If your business fits into one of the underwriting categories the pricing can be done quickly. If for some reason your business is not an acceptable category then you may have to purchase a traditional commercial policy.

Insurance for home based businesses may be less expensive and easier to obtain than you think. Reliance on your homeowners policy to cover your exposures as a businessperson may not be the most practical way to go.

Posted in Business Insurance, General Information, Home Business Insurance, Homeowners Insurance, Why choose us for your insurance | Comments Off

Man’s Best Friend and Insurance

Monday, September 21st, 2009

As you can tell by the title this article is about dogs and how they can use your insurance policy for more than a crate liner. According to the Insurance Information Institue the average dog bite claim in 2008 was $24,461 with 15,823 claims reported in the same year. A tidy sum of $387.2 million was paid by insurance companies for dog bites in 2008.

You can search the internet and find some very useful legal information regarding dog bites. New York takes a mixed approach in handling dog bites with some elements of the “one bite rule” in combination with strict liability provisions. There may be other avenues for recovery as well that do not pertain to the liability provisions above so the advice of an attorney should by obtained.

The liability portion of your Homeowners, Condo or Renters policy provides not only financial protection for judgements against you the dog owner but also provides defense coverage if an attorney is required to defend your case. Keep in mind the liability portion of your policy is the cheapest part so buy all that you can. Limits range from $100,000 to $1,000,000 depending on the insurance company. Also don’t forget about a Personal Umbrella Liability policy as another protection mechanism.

We have had some dog bite claims in our agency and unfortunately a couple involving children. Settlements have ranged from $5,000 to $60,000 not including defense costs. Because these claims can be expensive most insurance companies request information on what type of dog you have and if it has a bite history. Certain breeds pose an issue with many insurance companies and could make it difficult to purchase a new policy so if you have questions give us a call and we can give you more details.

The bottom line is dog bites can be expensive and with the cost of medical care and plastic surgery the way they are the opportunity for a very large claim is there. Be careful who your dog interacts with and be realistic about it’s temperament. Be especially careful when children play or approach your dog because serious wounds can happen very quickly.

Posted in Condominium Insurance, Homeowners Insurance, Renters Insurance | Comments Off