In Case of Sharknado, You're Covered

Consumer News recently asked those at the Insurance Information Institute if insurance policies would cover a Sharknado. Good news! most accidents that could occur in the event of this Syfy based catastrophe would actually be covered under a standard policy.

For example, the tornado itself is actually considered a wind event along with hurricanes. The falling sharks, on the other hand, that are creating a brand new type of disaster are considered "falling objects." Apparently, a falling asteroid falls into the same category under homeowners insurance.

Basic comprehensive coverage on your vehicle can protect you from the damage that will occur from the Sharknado's violent winds. This could also protect your car or truck from "animal damage;" although, your agent probably never thought of falling sharks when you asked for comprehensive coverage in the beginning.

The group also asked about any missing limbs that might be chomped off in the event a falling shark decided to eat you on its imminent fall to the ground. This would have to be a claim filed under your health insurance. Hopefully, this would only happen as a freak accident, though. Who would actively seek out to fight a Sharknado?

All About Renters Insurance

Many people believe that in order to have insurance for their personal living space and personal articles inside that they must own their own home or condo. This is not the case at all. Renters insurance exists to protect renters in the same manner that it protects homeowners. Whether you live alone or live with roommates, having renters insurance is important in protecting your property from accidents, natural hazards, and thefts.

How Renters Insurance Works

Just like homeowners insurance, renters insurance protects you from financial losses such as a burglary or a fire. This will usually include personal liability insurance that will protect you from lawsuits or medical bills that might result if someone is injured or harmed in your home. 

It is important to know exactly what your policy will cover as some types of protection like for floods and earthquakes are not standard. If you live in an area that is prone to certain types of weather patterns, it is wise to get extra coverage included in your renters insurance.

Where to Search for Renter's Insurance

One of the best places to start your search for renters insurance is online. You can check out numerous websites such as Main Line Insurance in Paoli, PA to get an idea of what they cover under a policy. There is also usually an option to get a quote on most websites. This will include providing your location, what type of dwelling you live in, and your age among other factors. 

If you are adding a renters insurance policy to existing policies, depending on your provider you might be able to receive a discount for having multiple types of insurance. Once you get a quote from one company, call other agents in the area to see what the competitive prices are that offer all you will need.

Renters Insurance Limits

There are usually limits that exist for certain types of items with renters insurance. It is important to make sure that your items can be covered under the specific policy limits concerning different types of personal items. If you have something that goes over the allowed limit, talk to your agent about "scheduled items." These are items that will allow you to get additional coverage for an additional fee.

Create an Inventory

When a disaster happens, it is important to be prepared. In order to file a claim with your insurance agent, you will need to verify what happened and what was lost. This means having an inventory of items you want covered prepared ahead of time. This should be of everything you own - especially your expensive items.

Your inventory list will help your insurance agent determine how much money you will receive. It is important to fill this list out when you first find your agent. Whenever you make large purchases, you should update your list so your agent will have it on file what you own. Taking pictures of your place to accompany the list is also a good way for your agent to see what you own.

Resources: Kiboo

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.

Five Myths About Auto Insurance

Everyone has probably heard at least one myth regarding auto insurance. Some myths result from facts that have been turned upside down and are now skewed, and others have no basis in reality. Here are a few hearsays about car insurance that are false.

"Color Matters"

It has been a long held belief by many people that if they buy a red car, there insurance will cost more than if they buy a car of any other color. This is not true. Insurance companies do not ask you about the color of your car when processing a quote.

"One Speeding Ticket Will Cause Insurance to Skyrocket"

In most cases getting one speeding ticket is not going to change anything about your insurance. Normally, you will have to get at least two speeding tickets before you will see an increase. There are special cases where this is not what happens. However, your driving history, length of time with the insurer, and how fast you were all play a role in determining if and how much your insurance will change.

"Cheaper Cars Cost Less to Insure"

Not necessarily. If you buy a cheap car with a large engine, or if your vehicle is particularly heavy, these and other reasons could result in insurance that is higher than a car that cost plenty more. 

"Only the Bare Minimum Is Needed"

Some people believe that they only have to purchase the bare minimum of insurance to be covered. While most states have a bare minimum that is required, this minimum in most cases will not be enough to cover all the damage that may occur to your vehicle, others involved, or to your person in an accident. This could result in your personal assets being pursued. 

"If I Wasn't Driving, I'm Not Responsible"

If someone else borrows your car and has an accident, most insurers will still find you liable. In most states the main insurance policy is the primary one responsible. In some cases if the policy does not cover all expenses, then the driver's insurance company will be responsible for reimbursing any auto repair and other damages.

Multifamily Insurance Trips and Traps

Surely every property owner’s nightmares must include finding out in the aftermath of a hurricane, fire or a lawsuit that insurance does not cover the costs. What a disaster! Apartment owners must be very careful to risk-manage properly and make sure their assets have the correct insurance policies.

Experts’ advice for ensuring proper insurance protection for apartment properties typically fall into three categories: Making sure that the right type of insurance is purchased, ensuring that enough coverage is purchased and selecting the right insurance broker.

Simply opting for the policy with the lowest premium “just because they are trying to save money” is one of the most common pitfalls of apartment owners, says Carlton Einsel, executive vice president of The Donaldson Group, a third-party apartment manager. “But people do that,” he adds.

According to attorney Barry Fleishman, partner at Kilpatrick Townsend & Stockton LLP, the most typical missteps apartment companies can make include not adequately understanding the coverage, not reviewing the actual policy terms with their brokers and legal counsel, and failing to compare losses in the past to their current coverage. Insurance is a very difficult and complex field, says Fleishman, and the risk manager or CFO should work closely with the broker and/or an insurance attorney to make sure there are no unintended gaps in the protection.

What type of insurance to purchase

First, apartment owners need to ensure the correct type of insurance is acquired. Experts advise that owners purchase all-risk—rather than named-peril—insurance, whether the insurance is third-party property insurance or general liability insurance. This is because named-peril insurance covers only risks that are specifically named, whereas all-risk insurance covers all risks except those explicitly excluded. Property owners should also be careful to have policies that reimburse at replacement cost—and that cover business interruption.

“Buy broad, all-risk, policies, rather than named-peril policies,” says Steve Cataldo, director of risk management at Greystar, which oversees insurance for a management portfolio of more than 48,000 apartment units.

Property insurance coverage generally applies to “all risks,” such as  fire, explosions, earthquakes, tornados and hurricanes, with the exception of specific exclusions. Fleishman, a legal specialist in policyholder insurance coverage, says it’s important that the apartment company review the risk history of the property and the areas in which losses were suffered in the past, and then ensure that none of these exposures are excluded from coverage.

The terms of the insurance, naturally, will be influenced by the location of the property. If the apartment asset is close to a disaster prone area, such as a flood or an earthquake zone, the insurance policy will likely contain sublimits that may be much lower than the coverage for the basic perils.

Certain perils such as windstorms and earthquakes may also carry higher deductibles, depending on the location of the asset, adds Derek Ramsey, Greystar CFO. The apartment owner needs to determine its ability to fund the deductible if a loss occurs. If available cash will be insufficient to meet that deductible, then the owner may want to consider paying a higher premium in order to obtain a lower deductible, he points out.

If coverage for particular risks-—such as flood, pollution or earthquakes in certain regions—is not found in traditional types of policies, the property owner may be able to look to alternative instruments for managing risks. These alternative instruments, which can be very sophisticated, include specialty risk policies (such as pollution liability policies), catastrophe bonds, self-insurance supported by re-insurance, or industry risk retention pools, says Fleishman.

As regards both liability and property insurance, Fleishman advises that apartment owners ensure that all layers of insurance—primary, umbrella and excess—be consistent with each other. For example, property owners should make sure that certain excluded losses in primary layers are not also excluded in umbrella or excess layers. In such cases, there would be a gap in coverage.

“Sit with your broker (or attorney) and go through the policy page by page(it takes one day or so), and understand what is in the policy: what is covered and what is excluded,” he says. “The broker should make sure the policy is consistent in each layer of insurance or tell the client where it is not.”


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