How do you prove what you lost?

Can you remember everything you owned, where you got it and what it cost?  Those are some of the questions you'll need to answer if you want to take advantage of your insurance policy's Replacement Cost for your personal property.

After a loss, most insurance companies will give you a check that covers the Actual Cash Value (aka: depreciated value) of your personal property (couches, TV, clothes, etc...)  In order to get the full replacement cost you have to re-buy the stuff.  However, many companies want to have some idea of what was in your home before you replace an Ikea couch with something from Ethan Allen.

It's a good idea to take pictures of your home.  Get a snapshot or two of each room and then put the images somewhere safe OUTSIDE OF YOUR HOME.  It's a whole lot easier to prove what you had (and what you didn't, i.e. original Picasso) and it should only take you a matter of minutes.

Contact us for more good ideas that aren't that exciting, but really do make sense.

My apartment is ruined. Now what?

What happens after there is a covered loss at your apartment?  Half of your stuff is undamaged, but the landlord says you can't live in the building while the damage is being fixed.  What happens next?

If you have renters insurance then you're probably in luck, there is coverage for the extra expenses you incur after a loss.  On most policies it's called "Loss of Use".

Porch Collapse

Here's a question that came into our inbox regarding the liability faced by having a porch at your apartment/condo....

Hi Dan:

I was listening to the radio as I was driving home last night and there was a story about a Chicago apartment's porch falling and injuring 10 people. Who would be liable in this case? Would it be the landlord since it's their property or could the renter be held liable as well? I have a porch and entertain quite often so I want to make sure I'm insured properly.

Thanks!

Umbrella Insurance

I wanted to introduce the concept of an umbrella when it comes to insurance.  You may have heard of the term before, but not known what it meant or if it referred to the Travelers umbrella.

An umbrella is additional liability coverage that sits "over top" of your primary liability on your home or renters' and auto insurance. It usually comes in one-million dollar increments up to $5m. The point of an umbrella is to have more protection for current and future assets should there be a lawsuit against you.

Your primary auto and homeowners'/renters' policies have "Personal Liability" or primary liability limits anywhere from $100,000 to $1,000,000.  (We recommend nothing lower than $500k)  The umbrella would sit directly on top of that, effectively extending the amount of insurance available in case of a lawsuit.

The need for an umbrella typically rises as you have more assets to protect and greater ways to put them at risk (i.e. teenage drivers, boats, etc...), but it's always a good idea because the cost is not great compared to the protection given.  Lawsuits can lead to a judgement that will garnish future wages.  So even if you're just renting an apartment now and have one car, don't think for a second that's all you have to lose.  $200 now for a million dollar umbrella is worth it considering what you could lose down the road.

If you have questions please contact me for more information.

Moving Apartments? Are you covered?

Most people don't stay in the same apartment year after year, so there is always going to be issues with moving.  Do I rent a truck?  Do I pay a couple of guys with a pickup truck?  Do I volunteer my friends to help me move and pay them with pizza and beer? (Insert Seinfeld reference here.)

Are your belongings and your liability covered when you're either in-between apartments or occupying more than one?  The answer here, as it is with most insurance questions, depends on the circumstances.  We'll cover a couple of those after the jump.

Protecting Against Water Damage

A lot of questions about water damage come into my mailbox, so I thought I would address a one of the most common. What is the difference between Flood and Sewer/Water Backup? One of them can be included in your policy and one has to be purchased separately.

After the jump we'll examine each one and let you know how to tailor your insurance policy to suit your needs.

Affordable vs. Coverage

A question was posed about the desire to save money, but also have adequate coverage on personal property and belongings.  I have lots of thoughts, and some of them are actually relevant to this topic, I hope.

The balancing act between a quote that includes the coverage you need at the affordability you want is always there.  It comes down to choices like; what deductible can you afford should a loss happen? and what amount of insurance will allow me to rebuy everything that I'll need going forward?

What is my insurance actually covering?

Insurance policies are long...and detailed...and incredibly dry.  Remember some of your textbooks from school? Like that.  Your insurance agent is the best person to talk to about what is covered - and more importantly what isn't.

Here's a pretty comprehensive look at what is covered under most insurance policies and where many of them fall short from Forbes magazine. In the article they speak with an underwriter from MetLife Auto & Home, which is one of the carriers we represent at Gallagher.

http://bit.ly/9kpT4B

As always, contact me if you have more questions.

I Just Got My First Apartment...Now What?

Finished school.  Check.

Found a job.  Check.

Rented an apartment.  Check.

The next step is often overlooked, but is one of the most important in your present situation and your future outlook.  Insurance.