Apartment Insurance FAQ

1) What does a renter’s insurance cover?

Generally a renter’s insurance policy covers the following: Theft, Vandalism, Smoke (if sudden and accidental), Sudden and accidental discharge of water, Fire and Lightning, Windstorm or Hail, Explosion, Glass Breakage, Falling Objects, Vehicles, Weight of ice, snow or sleet, riot or civil commotion, Additional living and eating expenses, liability protection.

2) I got a cheap renters quote for $15 per month. Should I take it?

Whoa! Certainly there are ways to minimize a renter’s policy premium such as the amount of property insured, the deductible and limits of coverage. Be sure to understand all aspects of what you are quoted. For less than the cost of a pizza you might be able to significantly improve your policy’s limits. The saying “you get what you pay for” means everything in insurance.

3) Do I really need an agent for a simple renter’s policy?

The value an agent adds is can be worth thousands of dollars if you aren’t covered for something you assumed was included in your policy. The agents job is to advise you now, after you purchase your renters policy and of course in the event of a claim. Part of having an a relationship with an agent is to help you as your needs change in all stages of your life.

4) What is ACV and RC?

ACV otherwise known as Actual Cash Value is one way to get a cheaper policy premium but also can seriously diminish the amount of you receive in a claim. If you were to lose your television in a fire and you had an ACV policy you would only receive what the ‘cash value’ is. If the TV were a few years old it might only be worth half of what you paid for it. RC also known as Replacement cost, is a type of coverage where you get the full replacement cost of the lost item. In the same example, if your TV was lost in a fire and you paid $900 two years ago but the same TV is now $1,200 you would get the full replacement value. Beware of the low cost renters quote from your current provider as it might contain the ACV endorsement which is clearly not as robust as a policy with Replacement Cost coverage and that is why you are buying the policy in the first place right?

5) Is liability coverage really worth it?

Liability coverage normally comes standard with $100,000 of coverage. For a nominal increase you can get 300,000, 500,000 or even 1,000,000 in protection. Liability protection can be worldwide protection (varies by carrier). Generally we recommend that you cover your total assets at a minimum; however, even if you are still building your financial future, one liability claim against you could result in a judgment against you. Would you rather have to pay someone via a wage garnishment for many years or have the insurance company pick up the tab? For less than $5-10 bucks a month the choice is a ‘no-brainer’.

6) I just got engaged! My wedding ring is covered by my renter’s policy correct?

Congratulations on the engagement! Not so fast on the renters policy! Generally renters insurance covers your personal property and it may cover some basic jewelry amount however, insurance carriers normally require a ‘floater’ or ‘rider’ to increase valuables such as jewelry, watches, art, furs, silverware etc. In most cases an appraisal is required to verify the value. Be sure to inquire before you assume you have coverage for that diamond!

7) Are there any additional discounts I might qualify for?

Yes! If you also insure your car with the carrier you can get an auto/renter discount. Likewise the discount on the auto insurance can be a real savings! There can also be discounts if you also have your life insurance with the same carrier. Be sure to ask us for all available discounts!

8) I have another question but it’s not listed here?

Call us directly or email us anytime. We are here to help you get the best coverage for the least amount of premium without sacrificing coverage or a great insurance carrier. We look forward to hearing from you!

9) I think the amount to replace my apartment is low?

It probably is! Most agents don’t spend much time helping determine the actual replacement cost for each risk. Most business owners only look at the bottom line premium and fail to see that the reason their policy is cheap is that it’s not insured to value. There can be penalties for not insuring to value.

10) What exactly is “business Income?”

On an apartment owner’s policy or other landlord type policy, business income (also known as business interruption insurance) allows you to receive income while your apartment building and its contents are being rebuilt and replaced. It
helps replace your lost rents. Most carriers offer 12 months. We have 18 months which is a HUGE advantage.

11) How do you handle claims?

Our claims representatives are employees of the carrier. We don’t use 3rd part adjusters. This is a big advantage for you in that the claims are handled locally and the adjuster works for you. With 3rd party adjusters, the adjuster work for the carrier. Also, our agency has an in-house claims rep that monitors all the claims of our clients making sure the process is a smooth one.

12) Umbrella coverage just puts a target on my back right?

We hear that alot! our response is the following: if you own rental properties you already have a target on your back. you just have to decide who you want to pay for an award if you should ever be sued. would you rather put up your own cash or the insurance companies? With limits up to $10 Million rates start as low as $350 for an extra million in umbrella liability protection.

13) What deductible should I have?

Over time you will save money having a higher deductible. Not so long ago most apartment owners carried as low as $500.00 deductibles. today insurance carriers have changed their stance on claims. They do not want to take care of wear and tear type issues. we recommend a $1,000 minimum deductible while many large buildings often carry as high as $10,000 deductibles. the savings over time can be substantial!

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