How did someone surrounded by insurance policies, professionals, and jargon every day find myself uninsured for nearly a week?
I asked myself this question a few days after I moved into my new place of residence and then quickly went into action-mode, trekking up the stairs to talk with our Personal Lines Client Advocate, who promptly assessed my needs and helped me get insured.
A recent I.I.I. (Insurance Information Institute) poll found that 96% of homeowners had homeowners insurance, but only 35% of renters had renters insurance. When the average renters insurance premium across the U.S. is $187 annually, you wonder why more renters don’t value and purchase the coverage. If you’re one of the 65% of uninsured renters, here are 5 questions to ask yourself:
1. How much insurance should I buy?
Create a home inventory list of all your personal possessions, include estimated values, take photos, and make sure you have enough insurance to replace all of your belongings in the event of a fire, burglary, or other covered disaster.
2. What do I want my deductible to be?
This is, of course, the amount of money you’ll pay out-of-pocket before the coverage kicks in, and the larger the deductible the lower the premium charged. Just think about what you can afford, because that’s the figure you’ll be responsible for each time you file a claim.
3. What’s a “floater” and do I need one?
Most standard renters (and homeowners) policies only offer a limited dollar amount to cover valuables such as jewelry, musical/sports/film equipment, or collectible items, so if you have any of these items then you should consider adding a floater to your renter’s insurance policy.
4. Do I have enough liability insurance in the event someone sues me?
Accidents happen, that’s why you’ll want a liability limit sufficient to cover you (or your pets!!) in the event you get sued. Liability coverage will pay for both defense costs and court awards.
5. What will I do after a disaster if I can’t live in my rental apartment, condo, or home?
Renters insurance provides coverage in these cases (if the disaster was a covered disaster) called Additional Living Expenses, for hotel bills or restaurant meals during the time your rental is being repaired.
Don’t want to pay the full annual premium up-front? Then just have the insurance company auto-deduct the premium on a monthly basis. More often than not, monthly payments will be between $15 and $35, which is approximately the price of a few grande caramel macchiatos from your favorite coffeehouse. 🙂
Whether you’ve only been uninsured for a few days like I was, or it’s been a month or a year, Sovereign can help. I know it first-hand.
Author: Sovereign Risk Solutions