Archive for December 2013

Renters Insurance 101   Leave a comment

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Before you embark upon finding renters insurance, you’ll want to have a solid grasp on what it is and why you need it in the first place. Here we’ll give a brief explanation of renters insurance, explain why you need it, and tell you what it covers.

Why Have Renters Insurance

A lot of people have the misconception that, because they rent their home, they are exempt from needing insurance protection. This could not be further from the truth. Insurance is not just for homeowners, and here is why.

  • Liability protection. Lawsuits abound in today’s society, and, if one were brought against you, it could mean financial ruin. Accidents happen all the time, and you don’t want to end up financially devastated because of a mistake you made. Liability protection covers inadvertent damage to property or bodily injury that you case. For example, if a fire starts in your apartment because of your negligence, the other tenants could potentially bring legal action against you. Accidental occurrences, like someone tripping over something and hurting themselves in your apartment, are likewise covered.
  • Landlord policies do not cover personal belongings. Remember that the average renter has over $20,000 in personal property that a landlord’s policy would not cover. In the event that the items inside your residence were ever damaged, stolen, or vandalized, renters insurance would reimburse you for your losses.
  • Renters insurance is Inexpensive. When you compare the cost of renters insurance with what you stand to lose if you don’t have it, it underscores how inexpensive coverage is. There is no one who rents that should not have renters insurance.

What Renters Insurance Covers

Renters insurance policies will specifically state the events against which you are insured. Typically, the major events include:

  • Smoke damage
  • Vandalism
  • Fire
  • Lightning damage
  • Wind damage
  • Theft
  • Vehicle/aircraft damage
  • Water-related damages

Aside from the aforementioned perils, your renters insurance will also include liability protection, which means you are covered in the event that you cause unintentional property damage or personal injury to another person. Usually, the policy will even cover your legal fees, if necessary. Renters insurance typically also includes medical payments coverage, which covers the medical expenses of a person who does not live at the insured property.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

Auto Insurance Coverage for Teen Drivers with Divorced Parents   Leave a comment

When a teenager receives her driver’s license, she often will be added to her parent’s auto insurance policy. But if her parents are divorced, teen car insurance could become a bit confusing.

A father teaching his teenage daughter how to drive.

 

Insurance companies and states have different requirements regarding coverage of additional drivers on an insurance policy, but here are some tips to review if you have a teenage driver with divorced parents:

If your teen has access to driving vehicles at both parents’ houses, then both parents might need to add him or her to their individual policies. Some companies may require that the parent with custody add the teenage driver to their policy. Divorced parents may want to contact their insurance companies to find out what is required in their situation.

Every state requires licensed drivers to have auto insurance coverage, which includes teen drivers, even those with a permit, when driving. If you have a teenager in your household who may be on your former spouse’s insurance, it may be a good idea to find out if your insurance would cover your teen while driving your car.

Safe driving techniques can help all family members save money on car insurance. Teaming up with your former spouse to encourage, educate and even monitor your teen might help to make him or her a better driver. Car crashes are the No. 1 cause of death for teenagers, according to the Centers for Disease Control and Prevention.

 

No matter which parent carries their teenager’s insurance, both can set rules for the use of the car. Here are some suggestions:

  • Prohibit cell use and texting when in the car.
  • Limit the number of passengers in the car when your teen is driving.
  • Establish a boundary of where your daughter can take the car.
  • Encourage your son to call you at any time for a ride if he feels he, or another driver, isn’t fit to drive—no matter what the situation is.
  • Require everyone—drivers and passengers—to wear seat belts.

Having a teenage driver in the family is always an exciting time for everyone. If you have a change in your family situation, contact your insurance agent to determine if any changes are needed for your policy.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

Courtesy of Allstate