What is Renter’s Insurance? | Renter’s Insurance Definition

What Does Renter’s Insurance Include? 

Even if you do not own a home to insure, you still need to consider what you need for insurance.  Renter’s insurance can help in the event of unexpected situations.  If a visitor is injured or a break-in occurs, renter’s insurance will help to protect you and your possessions.

Personal Property Coverage

People often do not realize the value of what they own.  The cost adds up quickly when you add up all of your possessions and consider what it would cost to replace them if you lost everything.  Personal property coverage can help to cover your belongings if they are damaged in a fire or if they are stolen.

Protection usually applies to certain risks, also called perils, such as fire and theft.  If someone breaks into your rented home and steals anything or if there is a fire and your belongings are ruined by the resulting damage, personal property coverage may help to pay the cost of replacing your items.  
Make sure you know your coverage limits as there is a maximum amount that your policy will pay out for the replacements.  Read your policy carefully and speak you’re your insurance broker if you have any questions about the coverage.

There are some different choices when you purchase a policy:

• You will set coverage limits that will protect your belongings.  It is a good idea to make a home inventory and itemize everything.  By the item write down the cost or approximate cost so you know what it would cost to replace.
• Some policies provide actual cash value protection.  This means that items will be covered up to their current market value.  
• Other policies provide replacement cost coverage.  This will help you to replace items at the retail price.

Personal property coverage does not protect everything you own or it only protects it up to a maximum value.  Items such as jewelry and coin collections have limited coverage with a standard policy and if you have such items you may consider adding them to the policy under scheduled personal property coverage.  To do this, will need an appraisal that shows the value of the item so that you can get the necessary amount of protection.

Liability Coverage

A renter’s insurance policy can also include liability coverage.  If you are found legally responsible for injuries to other people or damage to their property, this coverage can protect you from having to pay damages out of your own pocket.

If somebody trips and falls in your home they may hold you responsible for medical bills.  In another instance, your child may accidentally throw a ball through a neighbor’s window.  Liability coverage may help to cover the costs of the damage.

Again, there will be limits that the policy will pay out.  Find out what they are and if you feel you may benefit from having higher limits, talk to your agent to see what is available.

Additional Living Expenses 

Additional living expenses will be handy if something happens to the home and you are unable to live in it.  If the home is damaged by a fire and you have additional living expenses on your renter’s insurance, it will help you to pay increased costs while you are out of the home.  It may cover food and/or hotel depending on the amount of coverage you have.

Other Considerations 

Keep in mind that, as with any insurance policy, you will likely need to pay a deductible.  Your deductible amount depends on the premium that you pay for insurance.  A higher deductible means a lower cost for the policy but will cost you more if something happens.  You can lower your deductible by paying a slightly increased premium.  

If you have questions about renter’s insurance, the professionals at Allstate Insurance Company will be able to help you out. You can find an agent or get a quick quote online!

How to Choose Life Insurance|How Much Life Insurance Do You Need?

How Much Life Insurance Do You Need?

There are few things that are guaranteed in life. Unfortunately, one of them is the fact that it is temporary. Death can come whether we’d like to believe it or not and without much warning. To be sufficiently prepared you must know that the people you are leaving behind are taken care of. Life insurance is a way to ensure that your loved ones will be able to carry on their lives without dealing with financial struggle. But just how do you choose life insurance?

Life insurance is not a lottery. One does not just pick a number that sounds good and carries on until the day they pass. There is an art to calculating the ballpark number that would keep your family financially comfortable just as when you were alive. Don’t stress out about the prospect of death before it comes, just be prepared. Insure your life, so that your loved ones can live theirs. 

How to Choose Life Insurance: Factors 

Where You Are in Life

What point in your life have you reached? Should you even start to consider how to choose life insurance? For most people, life insurance may be a thought when they start a family, are nearing retirement or are at a certain age in life. Although accidents may happen every day, it is important to consider how your health can may affect death. Life insurance isn’t about you at all, it’s for your loved ones. Spouses and other dependents like children are essential people to consider when evaluating your possible life insurance. Life insurance should be large enough so that your dependents can live as if you were still alive providing a consistent income. Tools like life insurance calculators make how to choose your life insurance an easy task. There are various factors you should consider when thinking about your finalized life insurance total.

Income Replacement

Consider your net annual income. Life insurance plans are finalized as a set amount and mapped out over a specific amount time. For instance, if you make $45,000 and get a plan for 10 years, you should have finalized a plan for $450,000. This way your family will live with a consistent income as when you were alive. Once you have your targeted income per year nailed down and an estimated timeframe, it is crucial to then factor in your place in life. Whether you are a provider with small children or a provider with teenagers, where you and your family are in life matters. Children will typically depend on their parents until 18 and sometimes even beyond that age. Will your loved ones have enough for school over the years, other life expenses and college? This may be cause for a larger life insurance plan to keep your family out of financial distress. If you have young adult dependents, one may not need to invest in a large life insurance plan, because soon enough those dependents will be on their own. You will need to devise a plan that fits your loved one's expenses for as long as you see fit for the future. 

The most common life insurance plan is set for 10 years, but again, it is all relative to what you see fit for your dependents. If you arrange for a life insurance plan for 10 years, it is recommended that you provide your dependents with the income you have been providing as you had when you alive. This is just considering your base yearly income with no cushion for inflation. Another important financial factor to consider is whether or not you have money saved. If you have enough money saved, a lesser life insurance plan might work for your family. Maybe you have assets that could also shave a few years on your life insurance plan. Figuring out your dependents possible financial needs is a balancing act. All financials must be accounted for to narrow down your life insurance plan. 

What Do You Owe?

It is critical to consider what you owe currently as you are devising your life insurance plan. Debts and loans are some of the most important things to consider when you are thinking about your total life insurance cost. Debts and loans do not die with you. Your loved ones will need enough money to pay off any remaining debts or loans you leave behind. Another thing to consider is your mortgage. If you still have a mortgage, it is necessary for you to financially prepare your family to be able to pay that off. 

Future Expenses

Life insurance plans must also account for any future expenses that may arise over time. If your children need to go to college, it should be reflected in your insurance plan. Estimate how much each dependent would need to complete college so that they can receive the education you had hoped for them. Make sure your family has enough to pay for your funeral with your life insurance money. It will be your last expense in this world, relieve your family of the financial burden of the funeral with the money you factored into your plan. Even if you may have no dependents, it may be a concern for some to be able to pay for your funeral. Sometimes it may be a thought for some people to plan to cover their own funeral costs in a smaller life insurance plan done specifically to cover their funeral. 

When and if you feel that you are in the right spot in your life to consider life insurance is up to you. To find out more about life insurance contact your Allstate agent to help you devise a perfect life insurance plan to keep your loved ones financially safe when you’re gone.