Apartment Insurance: Do You Need It?

Renting an apartment is not quite the same as owning your own home; however, your personal articles are still inside. Even though this is the case, still only 31 percent of U.S. renters purchase renters insurance. That means that the majority of the country's renters are susceptible to losing all of their possessions if a robbery or fire were to occur.

Apartment insurance covers you usually in the case of loss or damage. So, if someone breaks in and steals your easy to grab and run laptop, there is a fair chance that you will need a replacement quick. There is also the possibility that your personal items become damaged while living in the apartment, and some claims can help you replace or repair the item. There is even coverage for vehicles you may have parked outside. If your car was to get hit or broken into while on the property, your renters insurance might just cover that, too.

It is projected that a typical two-bedroom apartment carries the worth equal to $30,000. This is a lot to lose if something were to happen. At least if you decided on apartment insurance, you could be reimbursed for the face value of what was lost.

Someone just moving out on there own, on-the-other-hand, might not necessarily need renter's insurance. Most likely they have very few possessions and paying for apartment insurance is really not necessary. However, anyone renting will have to see if their landlord requires them to have insurance in case of property damage. 

Coverage for most renters insurance includes protection in case of a robbery or loss due to a fire. There is also the added bonus of liability protection, which will include insurance in case someone is injured inside your apartment. 

To determine the amount of coverage needed, you should make a list of all items you would need replaced in the event that they were stolen or damaged. Sometimes it is necessary to take out extra coverage depending on the amount of property you own and the location of the residence. For example, if you live in an area that is prone to flooding, your basic coverage may not cover flood damage so it might be smart to require extra coverage.

Renters insurance may seem pointless, but it is only pointless until you are in a situation where it no longer is not. Most apartments only require coverage that cost around $200 a year. This is really nothing compared to what could be lost for most people. No one who ever needed having renters insurance regretted that they had it when the day arrived.

Fire and Homeowners Insurance

As most of the country looks on, Colorado has been suffering through its most destructive wildfire in history. As of June 15, it was reported that 45 percent of the fire had been contained. While many are still on the verge of being evacuated from their homes for safety, the wildfires have already accumulated their share of damage. So far, 2 people have been killed, 473 homes have been destroyed, and tens of thousands of people are currently displaced. 

It might be too late for many affected by the wildfires to have insurance protection from this type of destruction, but hopefully, others can be well prepared in case of a house fire. Here are a few things to be aware of concerning homeowners insurance and fires.

1. Unless the fire was set on purpose, most policies cover fires - even wildfires. Outbuilding and unattached structures are typically included in the policy.

2. Review what you own and then review your policy to make sure you have enough coverage. Certain personal items like jewelry and fine art only have a limited time they are covered under a standard policy. However, it is possible to buy special coverage for more protection.

3. Prepare an inventory of your household items. This can be used in case of a fire to determine what was lost. After you have listed everything, your insurance agent can put it in a file for safety.

4. Check if your policy is for "actual cash value" for your personal items, or if it also includes "replacement" coverage. 

5. If a fire has occurred, still do what you can to protect the property. For instance, call the fire department to prevent a flare up, board up windows and doors to protect from vandalism, and keep an eye on the property to ensure it is not disturbed. 

6. Submit your claim as soon as you can. This will require submitting a "proof of loss claim" in which you document items lost and their value. That is where your previous inventory sheet will come in handy. If you delay in submitting your claim, it will be that much longer before you receive a check.

7. While you are displaced, keep track of your living expenses. Your policy should reimburse for additional living expenses. This means if your weekly eating budget is $250, but you were forced to spend $400 having to eat out more, you will be reimbursed $150.

Resources: USA Today, Washington State Office of the Insurance Commissioner, NOLO

The Basics of Life Insurance

There is a large misunderstanding about life insurance. For instance many people do not understand when it is important to have this type of personal insurance. There are those who then get it, but do not understand how it changes or the upkeep that it will require in the future. Here the basics of life insurance will be laid out for understanding.

Who Needs Life Insurance?

If you are the main financial contributor to your family, life insurance is good to have to make sure that your family will be taken care of after your death. Chances are if you are single and have no dependents, there is no reason to get life insurance just yet.

What Types of Life Insurance Exist?

Term and permanent or whole are two types of life insurance. Each provides a different type of coverage for the individual.

Term provides life insurance for a period of time, usually 10 to 20 years. They will normally coincide with a large portion of money that is owed such as a mortgage. That way in case of your death, family members will be protected from be responsible for covering those payments. Term life insurance usually has a lower premium as it presents no cash value only a death benefit.

Permanent or whole life insurance, on the other hand, lasts the life of the insured and has a higher premium. Unlike term insurance, permanent insurance does provide cash value as well as a death benefit. This type of insurance is normally a favorite among those who have an estate they want to ensure is passed down to a family member.

It is typically wiser to invest in a term insurance plan as the premium is less. This will protect you and leave you with more funds for other investment ventures such as mutual funds.

Accidental life insurance is a third kind. This type of insurance would only pay out if you were to die in an accident. Term and permanent insurance would both pay out regardless of what caused your death.

What Is a Beneficiary?

The point of life insurance is to protect your loved ones that rely on you financially after you are gone. The beneficiary or beneficiaries that are named in the terms of your life insurance will be the recipients of the proceeds.

Is Extra Life Insurance Needed if You Have a Policy Through Work?

In most cases, the answer is yes. While having life insurance provided through an employer can be positive, it often does not help with all of a beneficiaries expenses after your death. Employers often only provide basic coverage, and this will cause employees to seek out an additional life insurance plan.

Review Your Life Insurance Regularly

After you have reviewed and chosen a life insurance plan, that is not the end. As long as you have the insurance plan, whether it is for five years or life, you should review the terms annually. Your conditions since initially signing up for the plan may have changed. It is important to update at least annually to ensure your family remains protected in the event of your death.