Posts Tagged ‘NY Renters Insurance’

Common Misconceptions About Renters Insurance

Wednesday, October 29th, 2008

1. I don’t need renters insurance because my landlord is covered. The fact is that the landlords policy will cover the landlord’s structural damage to the building (or house) itself, not the personal items of the tenants.

2. It’s out of my price range. Is $10 or $20 per month too much? In most cases you can get coverage for your possessions for as little as $120 for the entire year.

3. My stuff really isn’t worth much. You might be surprised at how quickly all those books, CDs, and kitchen appliances add up. According to www.statefarm.com, most people own more than $20,000 worth of property. Additionally, although your personal items may be older, many policies will cover you for replacement cost of your items-meaning that the insurance company will replace your covered items at today’s prices, not the depreciated value of the items.

4. I’m in a great building and I’m not worried about security. Many policies will extend beyond on premises theft and hazards. if a suitcase or camera is stolen while vacationing, you will likely be covered. The same is true with regard to items stolen out of your car. You will also likely be covered if someone slips and falls in your apartment, which could be a huge financial burden without the proper coverage in place.

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How do I insure Jewelry and Other Valuable Items?

Monday, October 20th, 2008

Does my home insurance policy cover all my valuable items?

 

A standard home insurance policy will include some coverage for your jewelry and other valuable items (such as watches or furs).  Under your home insurance policy, these will be covered if destroyed by causes that are covered in your policy.  Usually this includes fires, windstorms, vandalism, and theft.

 

The problem you will run into is that there are limitations in the standard policy as to how much you can claim for certain items.  Because of this, the insurer won’t be able to pay out more than what is specified in the policy.  This usually applies for jewelry.  Because jewelry is can be stolen easily, standard  policies usually only cover up to $1500 per item.

 manhattan with the twin towers

How do I ensure my valuable items are properly covered?

 

If you want to make sure the value of your jewelry is covered, there are 2 ways you can increase insurance coverage:

 

  1. You can raise the limit of liability on your current home insurance or renter’s insurance policy. This is usually the cheapest option.  The only problem is that there might be a limit on the amount you can claim on one specific item.  You might only be able to claim $2500 on one item of jewelry when the limit of the policy for all items is $5000.
  2. Purchasing personal article policies (sometimes referred to as floaters or riders) and “scheduling” each item.  Floaters are policies that cover specific items that have a high $ value. This is basically way of listing specific valuable items on your policy. The schedule would include a description of each item that is covered and how much it is worth.  According to this article , a State Farm Insurance spokesman said that 70% of floaters are bought to cover jewelry.  This option is more expensive but it protects the items under broader circumstances.  For example, a home insurance policy would not cover the loss of your ring if you left it in a hotel room or lost it swimming in the ocean.  These situations can be covered under a floater policy.  Before you get these items covered, it is essential to get them professionally appraised to determine their true value.

 

 

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