Month: January 2020

Yes, should have car insurance when you purchase a car. Even before knowing what specific model you’re buying, it’s always helpful to compare policies so you can start your policy the same day you purchase your new vehicle.

If you don’t have an existing one, it is important that you purchase car insurance policy whilst shopping for a new car, you’ll need to ensure you have one by the time you drive your new car. Even upon purchasing a brand new car, you must have insurance before you drive it away from the dealership.

But how can you make sure your insurance policy is active the same day you drive your new car, and what if you want to purchase a policy before knowing which specific vehicle you’ll be driving?

Luckily, you can compare insurance policy quotes before you buy your new car, and you can still give your agent all your other information so that your policy can be ready by the time you drive your new car. Here are some things you should know about setting up a car insurance policy before buying a car.

How do you get car insurance without a car?

When comparing car insurance policies from different carriers you’ll need to submit some information to get an accurate quote. That information typically includes:
– Names and birthdays for all drivers under the policy
– Driver’s license numbers for all drivers under the policy
– An address of the policyholder as well as where the car will be garaged
– Your declarations page from any recent insurance policy

What if this is your first car and you’ve never had car insurance policy before? To get the most accurate quotes on your insurance rates, you’ll need to submit specifics about your new car. You may also get a rough quote by providing your agent with the make and model of the car you have or plan to buy.

If you’re purchasing a policy from an independent agent, you can provide them with all your information and have your policy activated as soon as you pick a specific vehicle. That way you would be insured by the time you drive your new car.

If you’ve already decided on a specific vehicle, ask the dealer so you’re able to buy your insurance in advance. You’ll need to ensure that the policy date is active as of the day you’d be taking your car home so that you’re covered for the drive home.

When purchasing your car insurance coverage, you’re able to control the start date, whether it’s weeks or months, and you may also get a small discount on your premium for purchasing your policy ahead of time.

Can I drive a car without insurance if I just bought it?

You shouldn’t drive your vehicle if you don’t have an active insurance policy to cover you. If you’re pulled over driving without insurance, you will most likely get a fine, if not have your license suspended.

If you’re in an accident without insurance, the penalties could be even larger and more serious. This applies no matter the case – even if you just bought the car and are driving it home.

Driving without insurance generally means you’ll have a gap in your insurance record when applying for coverage again. Having a lapse means to carriers that you’re more of a risk to insure, therefore raising your premium.

In the event of an accident, you are financially responsible for any damage or injury caused. Therefore, if you’re driving home with a new car ad cause an at-fault accident without having liability coverage, you’ll have to pay for any damage done to other driver’s vehicle as well as their medical bills.

How long do you have to get insurance when you buy a car?

As mentioned above, you will need to purchase a car insurance policy before driving your vehicle. But it’s different if you’re purchasing a new car while you have an existing policy.

With some policies, they may include a grace period for new cars. That means that your new car covered under your existing policy even before you officially add it to your policy.

Generally speaking, if your current policy includes this coverage, it will most probably be temporary, anywhere between one week to 30 days. After that temporary period, you will have to officially add your new vehicle to your current car policy, otherwise, it won’t be covered.

Although you’ll be covered by your current insurance policy, you should still inform your insurance carrier about your new car as soon as possible.

There also may be limitations to this temporary coverage, meaning, your policy might only cover a new car if it’s a replacement to your current ride, not if you’re adding another vehicle to your policy and keeping the old one. The temporary coverage may or may not include comprehensive and collision coverage, although that depends on what coverage you have in your existing policy.

Before driving your new car, it’s always best to check with your current insurance company whether or not your coverage can get extended. If your coverage is eligible for an extension, you should also find out how long it lasts till you’d have to officially add the new car to your policy. Insurance companies like Zego make it easy for customers to buy insurance with simple payment options. For example, Zego has flexible plans where you can pay daily, weekly, or monthly. Similarly, Root Insurance lets drivers choose the coverage that fits their needs.

Need to plan your budget? Check out Moneysmart’s budget planner to help you determine how much you can afford to pay!

Can you get car insurance the same day?

Yes, purchasing car insurance is typically a quick and easy process that can get set up almost immediately. It’s always beneficial to compare different insurance quotes before choosing one. To ease the process, here are a few things you could do:
– Gather all the basic personal information such as license numbers, birthdays and other details of every driver you plan on listing.
– Research and understand how much coverage you’ll need for yourself and your vehicle, and what the different types are.
– Compare car insurance companies, including reviews and scores from third-party researchers to make sure you’re choosing a company with the best ratings.

As mentioned before, if you don’t have car insurance or an extension of your current policy, you will need to purchase one before picking up and driving your new car.

Do car dealerships require proof of insurance?

You will need to purchase additional coverage, as all, if not the majority of car dealerships require proof of your policy to enable you full ownership of your new car.

You can get proof of purchase either digitally or physical to show your dealership. Additionally, if you’re on a financial plan to pay off your new car, you might also need to provide proof of insurance to your financial institutions.

Your lender may require specific coverage from your policy, as the car is technically their property too until you’ve fully paid it off.

If you buy a car at a dealership and don’t have car insurance, you can always leave the car there, purchase car insurance have proof of insurance faxed over and pick up the vehicle and drive away – you can even do this all in the same day.

Find out more about full coverage car insurance here!

A car insurance broker helps users determine which policies suit them best, and arrange and assist with their car policy.

Purchasing a car insurance policy can be overwhelming. You’d have to determine which coverage would suit you best, how high you’d need to set your limits and deductible, and whether you’d want additional coverage. This is when a car insurance broker can be helpful in assisting your decisions. Car insurance brokers are agents who work on behalf of multiple insurance providers to assist users with comparing and choosing the right policies.

It’s not necessary to utilise an insurance broker, however, it does make the comparing and decision-making process more convenient. Additionally, car insurance brokers can assist you in understanding what your policy necessitates, including what components are involved and how much coverage is included.

What does it cost to use a broker?

Generally using a broker to compare quotes and purchase a policy doesn’t cost you anything; However, some brokers may charge you a service fee.

It’s always helpful to discuss any fees with your broker prior to conducting their services.

Who pays a car insurance broker?

The majority of car insurance brokers get paid a percentage of insurance premiums, also known as commission. Considering the commission is within your premium costs, utilising a broker doesn’t come at an extra cost.

Regardless of which provider you pick, the broker works with multiple insurance providers, therefore they have no financial incentive to push you towards a specific carrier. This is why you should trust insurance brokers to help you determine the best policy to suit your needs and goals.

Why go through a car insurance broker?

Think of a car insurance broker as your personal shopper. They have an understanding of your needs and have the resources to get it for you as quickly and simply as possible. That process saves you the time of understanding all the different policies, comparing different providers and doing a lot of research.

Car insurance brokers will have all your information and goals on hand. That means they’ll know which providers are more likely to insure you. Do you have bad credit? That’s okay, insurance brokers will provide you with a range of carriers that serve people with bad credit.

The same applies to poor driving history or if you’re still on your provisional license. Without a broker, the process of understanding your rates and comparing policies might be much longer.

A broker’s service doesn’t just end at helping you compare policies. They can also help you understand the application process and aid you with submitting the right documents. Additionally, brokers can help determine which coverage best suits your particular situation. You could also be aided with adding additional coverage. Coverage includes components beyond the baseline that can increase your financial protection.

Plan a thorough budget with Moneysmart to understand your spending habits and how much you can afford for your monthly payments.

How to find car insurance without a broker

It’s not necessary to use a car insurance broker. You can directly go to your desired insurance company or their website and apply for your chosen policy.

If you choose to independently find your own car insurance policy, you would need to apply to multiple different carriers and compare their coverage options and rates. Make sure you’re comparing policies with the same lengths and deductible amounts. That’s because some policies may seem cheaper than others due to decreased components.

It’s always helpful to compare insurance companies online and checking their metric scores to understand their claims and customer satisfaction. Even if an insurance company offers a really cheap quote, they could be known for denying claims and delaying pay-outs.

Independent brokers typically thoroughly know about the reputations of different carriers, therefore you’ll be guided towards higher rates of claims satisfaction. However, you may not need an independent car insurance broker. If you have a documented record of safe driving, you’d already been eligible for the best rates at any car insurance company.

Commercial car insurance is a type of insurance that’s designed to protect cars used for business against accidents, liability and third-party damage.

Commercial car insurance generally covers the same components as a standard car insurance policy. It’s vital for a business to have insurance, especially when there’s a vehicle registered under the business name.

Other users of commercial car insurance are truck drivers, food trucks and even dump trucks. They are all vehicles used for business, hence why they all need insurance. If you’re using your personal vehicle for business purposes, you should consider a commercial insurance policy, as you will not be covered by a standard policy.

Many components from a standard policy are also offered from commercial car insurance policies. They cover your vehicle in the event of an accident, theft, weather events or liability. This also includes reimbursement for medical and legal fees.

Driving yourself to and from work isn’t covered under commercial car insurance but instead your personal vehicle policy. This is because commercial car policies only cover you if the trip is purely for business purposes, such as driving clients to showings or driving trucks filled with tools.

Ride-share Drivers

If you’re a ride-share driver, you will not need a commercial car policy, as you’d only need to add ride-share coverage added to your personal policy.

Similar to regular insurance policies, commercial car policies contain coverage components such as:
– Liability coverage: This covers you if an injury is caused by you or your employee to another party while driving the covered vehicle. Additionally, property damage liability is covered if the damage is caused to another party’s property while using a covered vehicle.
– Medical payment coverage / personal injury coverage: This covers medical expenses for the driver and passenger of the covered vehicle, regardless of who’s at fault.
– Collision coverage: Pays for damage to your vehicles from theft, vandalism, extreme weather, falling object, or other non-crash incidents.
– Uninsured/under-insured motorist coverage: Pays for damage caused by an uninsured or under-insured driver.

Commercial policies also offer a number of types of specialised coverage that personal policies do not. These include:
– Trailer interchange coverage: Covers trailers your vehicles use that are owned by other companies
– Rental reimbursement with downtime: Covers your costs to rent a temporary replacement if your vehicle needs repairs
– Hired vehicle coverage: Covers you when you rent cars or vans for employees or clients
– Non-owned vehicle coverage: Covers you when your employees use their own cars to conduct business for you

What’s the difference between commercial and standard car insurance?

The main difference between regular car insurance and commercial car insurance is that a regular policy covers you and your vehicle when you’re driving it for everyday use, while commercial car insurance covers you when you’re using a vehicle for business purposes.

If you’re self-employed and got in an accident whilst working, your regular car insurance won’t cover any related claims. That’s because the vehicle was used for business purposes. Therefore, for those reasons, you will need to purchase commercial car insurance as it’s a separate product and not a policy you could add to your existing account.

Though commercial car insurance policies offer similar coverage components as regular car insurance policies, there are other coverage benefits that you’ll also receive:
– Policies have higher liability coverage limits
– Tax-deductible (personal insurance may be partially tax-deductible only if you use your car for business)
– Can cover either named employees or can offer blanket coverage for all employees
– Commercial auto insurance includes extra coverage that personal insurance does not, including equipment coverage.

Who needs commercial auto insurance?

If you just use your personal vehicle to drive to and from work, you don’t need a commercial car policy, you’re covered by your standard policy. But if you use your vehicle for work, your personal auto policy won’t cover you, and you’ll need commercial auto insurance.

Here are some major factors to consider, to determine whether you should purchase separate commercial car insurance:
– Ownership of the vehicle: You must have a commercial car policy if a vehicle is owned by your company; Otherwise vehicles owned by self-employed individuals might also need a separate policy.
– Use of the vehicle: If you’re driving your vehicle for business purposes, you might consider purchasing a commercial car policy in addition to your existing car insurance. Commuting to and from work isn’t covered by commercial car insurance; However, if your vehicle is used to transport people or goods for work, then you will certainly need additional commercial car insurance.
– Make and model of the vehicle: Some vehicles must be insured by commercial car insurance regardless of use and ownership. Additionally, any work-related adjustments, like a ladder rack or toolbox, require commercial policies.

Do ride-share drivers need commercial auto insurance?

Ride-share drivers are not required to have commercial auto insurance, here’s why:
Ride-share companies like Uber, Didi and Ola require their drivers to have their own personal insurance. That provides some additional insurance when drivers are working.

Due to a coverage gap between personal car policies and the coverage from ride-share companies, many ride-share drivers also choose something called ride-share insurance.

To understand the coverage gap, ride-share driving consists of three different periods:
– One is when you have the app haven’t picked a customer.
– Two is when you’re en route to pick up a customer.
– Three is when the customer is in your car.

Ride-share companies generally cover you during period two and three of a drive; However period one may be a coverage gap.

And even though you have a personal auto policy, your insurer considers you working during period one and could deny your claim if you have an accident while the app is on. That’s why many Uber drivers opt to purchase additional insurance to make up for the coverage gap.

Ride-share insurance is available either additional coverage on top of your personal policy or as an additional policy alongside your personal policy. If you drive for a rideshare app and want additional ride-share coverage, contact your provider to learn more about it.

How much does commercial car insurance cost on average?

Commercial car insurance tends to be more expensive than standard insurance. That’s due to higher liability coverage and the option to extend coverage to employees and multiple vehicles.

Similar to standard car insurance, your commercial premium will also depend on several factors. Your premium depends on factors such as location, driving records and types of cars insured.

You may be able to get discounts with purchasing commercial car coverage. That includes discounts for insuring multiple vehicles under the same policy or if your business has been running for longer than a certain number of years.

Plan a thorough budget with Moneysmart to understand your spending habits and how much you can afford for your monthly payments.

Where can you purchase commercial car insurance?

Most insurance companies that sell personal auto insurance policies also sell commercial auto insurance policies. The best place to begin is with your current insurer to determine whether they can give you commercial coverage.

What is renters insurance?

If you rent property, it’s always a good idea to purchase renters insurance to cover the damage or loss of your personal property. The landlord is rarely liable for your personal belongings; therefore, if there was ever a fire in your rental property, the landlord is only liable for the cost of the building damaged, not your damaged personal belongings. The reason landlords require you to get renters insurance is mainly to protect you and themselves. Let us fill you in about getting proof of renters insurance!

What does renters insurance cover?

Renters insurance policy protects your personal property and belongings. You will generally be reimbursed for damage caused by:
– Fire and lightning
– Windstorm and hail
– Smoke damage
– Vandalism
– Theft
– Damage from steam or water heating appliances
– Leakage or overflow of water or steam
– Short-circuit damage caused by electrical appliances
– Explosions
– Damage by vehicle (not your own)
– Damage by aircraft
– Riots
– Volcanic eruption
– Falling objects
– Weight of snow, ice, sleet
– Freezing of plumbing, heating, air conditioning

If your property becomes uninhabitable due to a listed covered peril, renters insurance can pay for your temporary living expenses. Depending on your policy, some renters insurance will cover incidentals as well.

Certain renters insurance policies will cover incidentals as well. For example, if your food goes bad after your power went out and your fridge stopped working, your insurance company will cover the cost of your wasted food, depending on your policy.

Renters insurance can even cover your belongings if damaged or stolen whilst not on your property. For example, if your laptop gets stolen at an airport, your insurance company can reimburse you for your belongings, depending on your policy.

Renters insurance can additionally cover personal liability on and off your property. This means if you cause any damage to anyone else’s property (depending on the extent of the damage and cost), your policy can reimburse the majority of the bill. Liability insurance can also cover your pets, meaning if your dog injures someone else, your policy can aid with paying medical bills.

Out of all insurance policies, renters insurance is on the cheaper side and is very useful as you’d be constantly protecting your items and personal liability.

Many landlords require renters insurance policy standards, but some may also ask for proof or renters insurance purchase.

Why do I need proof of renters insurance?

Proof of insurance can assure landlords that you’ve signed up for renters insurance covered as outlined in your lease. Some landlords can be happy with a verbal confirmation.

Physical evidence of proof of insurance can also come in handy in case of incidents, as your landlord would be aware of your policy.

What is proof of renters insurance?

Proof of insurance is physical evidence that you’re maintaining a renters insurance policy. The proof of policy will display you have an active policy with details of the coverage. There are many ways to obtaining physical proof, contact your insurance company for more details.

How to prove you have renters insurance

If your landlord is requiring proof of your insurance policy coverage, then you might need to ask your landlord about how they’d want the proof presented. This process can all be conducted prior to signing your lease.

Ways to prove you’re enrolled in renters insurance:

Add your landlord as an additional interested party
Some landlords may require being added to your policy as an additional interested party or party of interest. Landlords may require this, as additional interested parties are usually notified of any changes or cancellations done to your policy.

You can easily add your landlord as an additional interested party either over the phone or online. Adding your landlord as an additional interested party will not lend them any coverage. Due to them not receiving any coverage, your premium will also not increase with adding your landlord. They also cannot make any payments on your behalf.

A copy of your declarations page
The declarations page is usually the first page of your policy that contains your details, all relevant information about your policy, the amount of coverage, current status of enrolment, and expiration. The declarations page acts as an invoice for your insurance purchase as it also includes your policy number and insurance agent name.

You can simply obtain a copy of your declarations page from your insurance company, in case of needing to show relevant parties your proof of purchase.

Digital Proof
Many insurance companies give you the option of digitally maintaining your declarations page through email. This allows you to easily email your landlord a copy of your page, or you could also print it off if they request a physical copy.

Contact a representative
Many insurance companies can also provide you with a representative to contact your landlord on your behalf. The representative can confirm your current status with your insurance policy and provide further details of your coverage to your landlord either over the phone or through a signed letter.

How long does it take to get renters insurance?

Compared to other types of insurance, renters insurance is rather easy to obtain and typically has no waiting time. You can either purchase renters insurance online or in person.

You may need to provide some important information prior to purchasing your policy. You’ll most likely need to provide the following details about your residence:
– Type of residence
– Location
– Personal vs. business use
– Pets
– Any previous damage to the building and any previous claims filed

You can purchase additional coverage to protect yourself from rare events such as identity theft or forgery. Additionally, some companies may give you a discount for security measures already taken on your property, such as burglar alarms and smoke detectors.

When purchasing your rental insurance policy, you will most likely have the option to control the effective start date. This can benefit you in case you’re moving on a later date. Therefore, you could also purchase your policy and provide proof of purchase to your landlord on the same day.

Did you enjoy reading this article? Tippla is here to give you all the advice you need on renters insurance! Read more here!

What is a renters insurance premium?

Insurance companies typically offer discounts with full annual payments. But people tend to pay it monthly as it’s inexpensive. If you decide to cancel your insurance, most companies will provide the reimbursement, but that depends on your provider. Renters insurance is straightforward in the sense that you only ever need to deal with two factors: maintaining your policy by paying your premium, and paying a deductible when filing a claim. There are a few factors that determine insurance premiums.

Although some factors that determine your premium are out of your control; Factors such as additional coverage (your choice) also contribute to your premium.

The amount of insurance coverage you want

The price of your premium is mainly determined by the amount of coverage you require. It’s always helpful to take inventory of your items to calculate how much you need to include in your policy.

If you own items with higher value, you might want to consider setting higher coverage limits or in some cases even purchase additional riders.

The limits of your coverage will affect the cost of your premium. Here’s an overview of the coverage basic policies include:

– Personal property damage coverage: Reimbursement of repairment of damaged or stolen belongings

– Personal liability coverage: Legal costs from damage or injury of yourself or others

– Medical payment coverage: Medical expenses of other parties injured on your property

– Loss of use coverage: Expenses of living elsewhere if your home is uninhabitable

Your rental location
The location of your rental property helps companies determine the likelihood of you filing a claim. The more likely you are of filing claims, the higher your premium gets.

Weather is also a major factor that affects insurance premiums. For this reason, your insurance company will always ask for your address.

Your rental building and history
Your building size and history act as factors that determine the price of your premium. Older building increases your premium as they are at a higher risk of damage.

Your renters insurance deductible
Your deductible is the amount of money you pay out-of-pocket prior to filing a claim. This is then followed by your insurance provider covering the rest of the costs, accordingly to your coverage limits. The higher your deductible, the lower your premium will be.

Actual cash value renters insurance vs. replacement cost renters insurance

There are two payment options to choose from that determine how you get paid from filing a claim. You can either receive actual cash value or replacement cost of damaged or lost belongings. The actual cash value policy will pay you the value of your belonging after depreciation. This means you will not be paid the price you initially paid for them.

Replacement cost covers the cost of repairing or replacing the damaged/lost item. Therefore, this type of payment pays out more as well as costs more.

Renters insurance discounts

You can lower your premium by installing safety features in your home. Features that could give you discounts include:
– Fire and smoke alarms (sound on)
– Carbon monoxide alarms
– Automatic sprinklers
– Burglar alarms
– Deadbolt locks
– Fire extinguisher

Additional riders and coverage

Renters insurance doesn’t always cover all personal property. Generally, items with a higher value aren’t covered due to them being higher than the covered limits. In order to protect valuable items, people tend to purchase additional coverage to cover damage or loss of valuable items.

You can also add more personal liability coverage to increase protection from damage you’d be responsible for.

Your credit score
Insurance providers will assess your credit and debt history to determine your premium price. Satisfactory credit scores result in lower premiums as you would be at a lower risk to insure.

How to pay renters insurance premiums

You can either pay your premium in full or in increments. The different options include:
– Monthly
– Semi-annually
– Annually

The method by which you pay your premiums depends on your insurance provider. The most common form of payments includes bank transfers, credit cards or authorised checks.

What happens if I don’t pay my renters insurance premium?

Your insurance company is required to give you a 30-day grace period before cancelling your policy. If you don’t pay the premiums you owe within that 30-day grace period then you lose coverage. If that happens, you will have a lapse in coverage.

You should definitely try to avoid this as much as possible. If you have a lapse in coverage, then none of your belongings will be protected and you no longer have any liability coverage (you might also be in violation of your lease if your landlord requires renters insurance).

Hungry for more?

Did you enjoy reading this article? Tippla is here to give you all the advice you need on renters insurance! Read more here!

What is a Renters Insurance Declarations Page?

A renters insurance declarations page is usually is the front page of a policy that identifies the basics of your policy as well as the costs and coverage included. When purchasing renters insurance, you are purchasing protection for your personal belongings as well as coverage of your liability. The declarations page contains coverage details of your policy.

Your renter’s insurance declarations page is essentially your policy’s overview and invoice containing every detail you’re paying for. It also includes details of the limits and what’s protected.

It’s an important page as it’s a source of reference for your policy coverage. It can also serve as proof of insurance if your landlord has required you to purchase one.

How to get your renters insurance declarations page

A declarations page is typically attached to the front of any insurance policy.

If you don’t have one attached, you should contact your policy provider and request one. Making any changes to your coverage limits will result in a new declarations page.

When will you need your declarations page?

There’s a range of reasons as to why you’d need to maintain a copy of your declarations page. Landlords typically require tenants to purchase insurance. In this case, your declarations page would work as your proof of purchase.
It can also come in handy in case you need to file a claim, as you can reference what is and isn’t covered in your policy.

What details does a renters insurance declarations page include?

Your policy number and policy dates
Your insurance policy reference number will be listed on your declarations page. This will be the number that aids with filing claims.

The declarations page will also state the duration of your policy. Although they’re usually outlined as day, month, year, some companies will mark it down to the minute.

All relevant parties: The declarations page will state all parties included in or relevant to the policy. These include:

The name insured: This would your name, the policyholder. This will also include your date of birth and address.

The name of any additional insured: Additional people included in your policy. Anyone listed means your coverage extends to them.

The names of additional interested parties: Landlords will sometimes ask to be added as additional interested parties. This doesn’t add them to the policy or cover them, it just notifies them of any changes made to the policy.

Agent name: The insurance representative who manages your policy. This would include the company address and phone number.

The carrier: This would be your renters insurance company. It will include their address and phone number.

Information about the rental and building

Your declarations page will contain an overview of information about your rental unit. The information would include:
– Address
– Building type
– Building history
– Additional building details

Total Premium
Your premium is the amount you have to pay to maintain an active insurance policy. Factors such as cost of rent, credit score, and cost of belongings help determine your premium.

The amount of coverage required helps determine your premium; More coverage results in higher premiums. This also includes personal liability coverage.

You can pay your premium either annually or monthly to pay it in small increments.

Coverage components, limits, and deductibles
When filing a claim, there’s an amount you need to pay out of pocket, this is the deductible. Although not all policies require you to pay a deductible, personal property coverage that aids with reimbursing your belongings usually requires you to pay.

Your insurance limit is the maximum amount of coverage paid by your insurance provider. As mentioned previously, having a higher limit tends to lead to increased premiums. You will be able to see different types of coverage as part of your policy, before purchase.

Additional coverage and riders
Renters insurance doesn’t always cover all personal property. Generally, items with a higher value aren’t covered due to them being higher than the covered limits. To protect valuable items, people tend to purchase additional coverage to cover damage or loss of valuable items.

Discounts
Having safety features in your home could result in your insurance company providing you with a discount. You will also find discounts on the declarations page. Things in your home that could give you a discount:
– Burglar alarms
– Fire alarms
– Automatic sprinklers
– Fire extinguisher
– Smoke alarms
– Deadbolt

What does renters insurance cover?

Basic insurance coverage generally protects personal property and liability. If the property is damaged, you will be reimbursed. Damage includes:
– Fire and lightning
– Windstorm and hail
– Explosions
– Damage by aircraft
– Damage by vehicle (not your own)
– Riots
– Smoke damage
– Vandalism
– Theft
– Leakage or overflow of water or steam
– Freezing of plumbing, heating, air conditioning
– Short-circuit damage caused by electrical appliances
– Damage from steam-heating or water-heating appliances/systems
– Falling objects
– Weight of snow
– Volcanic eruption

Renters insurance also covers a certain amount of personal liability. This is in the event of injury to someone else or damage to another person’s property.

How to renew your renter’s insurance

Renters insurance is typically either six months long, or a year. Renewal results in a new declarations page and a potential change to your premium for different reasons. This depends on whether you increase or decrease your coverage.

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Covering power surge damage

Insurance providers either reimburse or replace your belonging in the event of loss, theft or damage due to covered peril. What’s considered a covered peril completely depends on your insurance policy. Each peril will have certain coverage limits.

In the event of electrical appliances getting damaged from a power surge, you may still get help from your insurance provider. Although, that would depend on how the power surge occurred and whether you have any additional coverage.

When doesn’t renters insurance cover power surge damage?

Damage caused by power surges is not commonly categorised as a covered peril. Landlords usually have electricians assess any outlets throughout the year and before you move in. To be safe, you could always ask for surge protectors to be installed before moving in.

When do renters insurance cover power damage?

Although renters insurance doesn’t cover power surge damage, it usually does cover damage caused by lightning, as it’s considered a covered peril. The amount of coverage reimbursed completely depends on your policy’s limits. Insurance providers also cover short-circuit damage caused by electrical appliances, as they’d either lead to damage to your appliances or a fire.

The amount of coverage reimbursed also depends on your coverage limits. Renters insurance will also cover damage indirectly caused by a power surge. For example, if a surge that overloaded the wiring caused a fire, your insurance provider will cover the damage caused by the fire depending on your coverage limit.

How can renters insurance protect expensive electronics?

Most renters insurance policies only cover up to $2,500 of damaged electronics. If you own rather expensive electronics exceeding that limit, you should consider a few options to increase coverage.

– Additional Coverage: Additional coverage could insure your more valuable items. Depending on the event causing the damage, additional coverage could aid in raising the reimbursement cost, although this could increase your premium.

– Replacement cost rider: Replacement cost rider protects specific items. Even though it’s more expensive, it’ll guarantee you’ll have your item either replaced with a new one or one with equivalent value or fully reimbursed.

– At-home business rider: Regular renters insurance only covers personal items, not business items. If you run an at-home business, your equipment used to run your business will not be covered. This is when an at-home business rider could come in handy, especially if you have expensive commercial equipment on your property.

All-perils renters insurance policy vs. named perils renters insurance policy

Coverage for power surge damage might also depend on the type of perils outlined in your policy. There are two types of renters insurance policies: an all-risk policy or a named perils policy. An all-perils or all-risk renters insurance policy is a type of policy that covers all perils unless otherwise stated in the policy. This means only the excluded perils will be named in your policy.

An all-perils policy is usually more expensive than a named-perils policy because it’s more likely that you will suffer a loss that the renters insurance company will be responsible for reimbursing. It covers more perils than a named-perils policy.

There are still some exclusions when it comes to an all-perils or all-risk policy. Your policy could still exclude power surge damage as a covered peril from the policy, but it will have to explicitly it as an excluded peril. A named-perils policy is like the opposite of an all-perils policy: it only states what is included as a covered peril in your policy.

So unlike all perils, which only includes what is excluded, a named perils policy will outline all of the covered perils that are included should you need to file a claim. A named-perils policy will outline a comprehensive list of covered perils. Because named-perils are so specific about when a damaged or destroyed item will be covered, they end up being the cheaper option, sometimes saving people a couple of hundred dollars a year in premiums.

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What does renters insurance cover?

Basic renters insurance policies are made up of several coverage policies for a range of losses. They cover:

– Your personal property: Your renters insurance policy covers both your liability as well as your personal property.

– Personal Liability and medical bills: This will cover the event of another person getting injured within your property, making you responsible for their medical expenses. You don’t need to be on the property at the time of the incident to get coverage.

– Temporary living expenses: If your home becomes inhabitable from damage, your insurance provider could pay for you to temporarily live elsewhere until your property becomes habitable again.

– Other types of coverage: You could add additional coverage for things that aren’t covered or considered covered perils.

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Does renters insurance cover collectibles? Here’s a breakdown on the ins and outs of collectibles coverage.

What is collectibles coverage?

To answer the question “does renters insurance cover collectibles” there are a few things to consider. Mainly, with renters insurance, collectibles coverage will depend on your policy. The majority of renters insurance policy providers will cover your personal belongings, liability, and potential living expenses if your property is uninhabitable.

Most renters policies will cover perils such as fire, vandalism, theft, smoke damage, leakage and more. Although, it should be noted that peril coverage depends on your specific policy.

If your item is of high value, in the event of damage or theft, your insurance policy probably won’t be enough to cover the reimbursement. Therefore, if you’re an owner of expensive collectibles, you should consider purchasing collectibles coverage.

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What is the difference between personal property and collectibles?

Your personal belongings are covered by your insurance provider, depending on your limit. Items include furniture, electronics, as well as clothing; they are the items that make up your home. For example, in the case of a leakage in your home, your insurance policy should reimburse you the cost of the belongings damaged, after you pay the deductible.

Collectibles, on the other hand, aren’t everyday items you depend on with your daily life. Collectible items could include things such as coins, paintings or stamp collections. Sometimes, valuables may exceed your coverage limits, meaning you would need to either customise your policy or consider additional coverage to protect your collection.

When does renters insurance cover collectibles?

Renters insurance coverage generally depends on your policy limits and the amount of additional coverage you would have purchased. As most insurance policies only offer coverage up to a certain limit, you should consider additional riders or coverage to ensure reimbursement for your highly valuable items.

Taking an inventory of your collection helps to determine its value and aids with determining its replacement cost in the case of damage or theft.

Additionally, getting a professional appraisal can help you receive physical evidence of your items’ value, in the event of damage or theft.

Different types of events covered under renters insurance?

Your renters insurance should cover the damage or loss of your items from these perils:
– Theft
– Loss
– Fire and lightning
– Explosions
– Smoke damage
– Vandalism
– Falling objects
– Damage from steam-heating/water-heating appliances
– Leakage or overflow of water or steam
– Windstorm and hail
– Riots

What is not covered by renters insurance

There are a few circumstances where renters insurance won’t cover or reimburse you, even if you’ve purchased additional coverage. Here are a few examples:
Wear and Tear: Your insurance provider will not reimburse you if your belongings are damaged from wear and tear over time.
Damage while on loan: If you loan your collectibles to an organisation of any sort, renters insurance will most likely not cover the cost of reimbursement in the event of loss or damage.
Extremely expensive items: Even with additional coverage, renters insurance companies will most likely not cover extremely expensive items as they’d exceed any limit. In this case, you’d have to purchase a completely separate policy that would specialise in expensive collectibles.

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You’ve just been popped the question, and you’ve excitedly said yes! You love your ring, but you want to make sure it’s covered. How can you do this? Will renters insurance cover lost wedding ring? We break this down.

Covering lost jewellery

When renting any sort of property, renters insurance commonly protects your personal property as well as liability. This includes your everyday items or belongings such as jewellery. When damaged by a covered hazard, you will get reimbursed to either fix or replace them.

Different types of coverage

Personal Property: This coverage protects and reimburses your belongings in the event of damage or theft. That coverage is regardless of whether it’s inside or outside your property.

Medical Expenses and Personal Liability: In the case of someone else being injured in your property, liability coverage aids with any legal expenses. Medical expenses are also covered in the case of another person being injured.

Loss-of-use coverage: In the case of your property becoming uninhabitable, your insurance may cover the costs of staying elsewhere.

Your policy limit determines how much coverage you get on expensive stolen items.

Will renters insurance cover lost wedding ring?

Insurance generally covers the majority and sometimes all the cost of reimbursement for your personal belongings. Even if your belongings were damaged or stolen not within your property, renters insurance will still cover the price of reimbursement. If your wedding rings get damaged or stolen whilst you’re on vacation, your insurance policy should still pay out your policy limit.

In the case of a covered peril, you should still be able to file a claim on your damaged ring, depending on its value and depreciation. It’s always a smart idea to get a professional appraisal on your pricier personal belongings, in order to ease your claim and help determine the replacement cost. This could also help you decide on whether you would want to add additional coverage.

What perils are covered?

When personal property is damaged by perils such fires, falling objects, theft or more, renters insurance will usually cover the cost. It’s important to mention that most insurance companies only cover expensive jewellery in the case of theft, as that’s the only covered peril with jewellery. Although, sometimes insurance providers will reimburse you for loss of jewellery, depending on additional riders or coverage.

What are the coverage limits for wedding rings?

Insurance usually includes a certain amount of coverage per loss, depending on your policy and provider. The insurer is liable to cover your coverage limit, which is the maximum amount. For example, if you purchase $10,000 in renters insurance, you will be covered up to $10,000 in total losses.

Value items like wedding or engagement rings have separate limits called sub-limits. Most insurers will offer sub-limits for jewellery within the $1,000 and $1,500 range. For example, if you have a jewellery sub-limit of $1,000 and your ring costs $8,000, you will only receive $1,000 for a covered reimbursement.

Most wedding rings are expensive and some people may want higher coverage, you could always purchase additional coverage.

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How to insure jewellery with renters insurance

The first step would be to put the renters’ insurance policy under the name of the ring owner, it can be in the purchaser of the rings name, but after you give the wedding or engagement ring to the recipient you must change the name on the policy.

– Add additional coverage and riders
Most insurance providers limit coverage at a range of $1,000 to $1,500 range. Meaning, if your jewellery exceeds that amount, you should consider additional coverage. There are a few ways to do this.

– Scheduled property coverage
This allows you to increase coverage for a specific item. With scheduled property coverage, you could also add additional coverage for a specific liability that is not covered by your policy. As mentioned before, jewellery is only covered in the case of theft; This allows you to cover it in the case of other perils.

– Increase your coverage limits of all your jewellery
You can purchase additional coverage that allows you to cover all jewellery. This means you could increase your total coverage to cover the majority of the value of your wedding rings, along with other jewellery items depending on each item’s value and your provider.

– Replacement cost coverage
Replacement cost policies tend to pay out the value of the item as if it were bought new. This means the depreciation is not a factor. However, you might have an agreed value policy, which will pay the depreciated amount of your item in the event of a covered claim. In this case, adding additional coverage can help you get paid out. Although additional coverage increases your premium, you’ll usually be reimbursed for your ring as if it were brand new, depending on your coverage limit.

– Purchase a separate jewellery insurance policy
A lot of insurance companies offer jewellery insurance, which would mean you’d have a completely separate policy from your renters’ insurance. It’s important to mention that you’d essentially be getting the same coverage from the separate policy as you would from additional coverage to your renters’ insurance policy, so that should be taken into consideration.

How to file a renters insurance claim on a wedding rings

In the event of filing a claim for stolen or damaged wedding rings, you’d need to start the process immediately. In the case of theft, you’d need to file a police report initially, as reports could provide your insurer with evidence of theft.

A lot of insurance companies have a deadline as to when you can file a claim to have your ring covered, therefore you should always file a claim immediately. This deadline is usually between 48 to 72 hours of the incident.
In order to ease filing your claim, always have these handy:
– Your policy number
Details about the incident (what happened, what it’s worth…etc.)
A police report in the case of theft
Contact details
– Documented photos or videos of the damage
After filing your claim, your insurance provider will start an investigation process which may take time depending on the incident. You could always ask for an estimated timeframe.

When does renters insurance not cover wedding rings?

Even after purchasing additional coverage, there are still some fractures that may not cover your wedding/ engagement ring.

Gradual deterioration: Your insurance provider will not reimburse or replace your ring from gradual wear and tear.

Insects or vermin: If pests damage your jewellery, your provider will most likely not cover your claim.

Destruction because of government quarantine or custom laws: Although this is rare, your insurance provider will still not cover or reimburse your rings in the case of government quarantine.

Mechanical breakdown: If any part of the jewellery itself causes the damage, your insurance provider will not cover it.

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Does renters insurance cover stolen cash?

Renters insurance companies commonly reimburse you for any damaged or lost personal property in the case of natural disasters, theft or vandalism. Items included in personal property coverage could be anything such as TVs, antiques, furniture, clothing or even everyday belongings. It can also include liability coverage, in the event of injuries on your property leading to medical and legal expenses.

If your property becomes uninhabitable, that’s when loss-of-use coverage becomes relevant. Loss-of-use coverage help pay for you to reside elsewhere whilst your property is damaged.

When do renters insurance cover cash?

Although theft is considered a covered liability, renters insurance will only cover a certain amount of stolen property, depending on your policy limit. A majority of policies will only cover lower limits, also known as sub-limit. Meaning, items such as jewellery, cash or electronics are usually covered for a lesser amount. Cash has an even lower sub-limit, as you can’t keep an inventory like you would with other tangible items.

Luckily, insurance will usually cover your belongings and cash, whether they’ve been damaged/lost on or off your property. That could result in a lower reimbursement though.

Filing a claim for just stolen cash never commonly required you to pay a deductible. However, if cash was stolen as well as other items, you will then have to pay your deductible file the claim.

How much stolen cash will renters insurance cover?

Generally, insurance policies will cover up to $200 in stolen cash. Even if $500 in cash was stolen from you, your insurance company will most likely only cover $200; This includes other currencies.
The following forms of currency can be covered depending on your policy:
– Cash
– Bank Notes
– Gold
– Silver
– Platinum
– Coins
– Medals
– Smart Cards

Why does renters insurance only cover a limited amount of stolen cash?

The reason renters insurance only covers a limited amount of stolen cash is due to the fact that your cash balance can change by daily. Additionally, an item such as cash is difficult to keep an inventory on as it’s harder to obtain proof of the theft.

Some reasons why cash has a separate sub-limit from other personal property:
– Moral Hazard: The reason why cash coverage is considered a moral hazard is that there is always a chance of a false claim.
– Documentation: As mentioned before, it’s a lot easier to document ownership of personal tangible items as opposed to cash, where you can’t keep an inventory of. This is due to the fact that cash is constantly changing, making it more difficult to lodge a theft claim.

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How do I file a renters insurance claim for stolen cash?

Upon theft, you should immediately contact the police and file a report. This will get you to not only recall what happened but also forms documentation that would act as evidence when lodging your claim. If the theft occurred within your property, along with calling the police, your landlord should be contacted. This would help with securing any hazardous damage done, keeping your property habitable. Regardless of the situation, you must always document the loss such as taking photos of broken windows or doors. This documentation will strengthen your theft claim and fade the idea of a possible false claim.

Lodging a claim should always take place within 24-72 hours after the incident, as you’d need to fill out claims forms for your insurance provider. Generally, you’d need:
– Your policy number
– Incident details
– Official report (police report documenting the incident)
– Personal contact details

Similar to other incidents, upon filling out your claim forms, your insurance provider will assign an adjuster to conduct their own investigation.

Safer options than cash

Carrying large amounts of cash around can get risky. Instead, you’re better off depositing that cash into your bank accounts, because in case of a theft, you can easily cancel your bank cards within seconds.

If you did need cash for any reason, printing off a bank receipt upon taking cash out can be your evidence documenting that you took cash from a certain location and time.

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Everything you need to know about insurance claims

Investing in renters insurance aids with protecting the personal property and liability of renters of all kinds. Renters insurance is designed to reimburse any stolen or damaged items in a renter’s property. Additionally, with some policies, you could also be protected against legal liability.

In the worst-case scenario such as uninhabitable property, your insurance policy will also cover the cost of temporarily residing elsewhere. In order to be reimbursed, you will have to start a claims process. With all claims processes of all kinds, you’ll always have to provide your insurance company with as detailed information as possible. This information would include the reason of loss/damage, the value of the lost/damaged item, any eyewitnesses or evidence, and much more depending on the scenario.

Upon signing up to renters insurance, it would be helpful to record an inventory of all your belongings, evidence such as photographs or receipts (of the items with a higher value), and their worth. Recording any documentation such as receipts can help with replacement costs, as that would help insurance companies determine the initial worth.

What does renters insurance cover?

There are three types of coverage categories.
– Personal Property: This coverage protects and reimburses your belongings in the event of damage or theft whether it’s inside or outside your property.
– Medical Expenses and Personal Liability: In the case of someone else being injured in your property, liability coverage aids with any legal expenses. Medical expenses are also covered in the case of another person being injured, or any damage done to someone else’s property.
– loss-of-use coverage: In the case of your property becoming uninhabitable, your insurance may cover the costs of staying elsewhere, depending on your policy.

Some included covered hazards:
– Natural disasters
– Electrical circuit damage
– Damage by vehicles
– Theft
– Vandalism

Filing a renters insurance claim with receipts

In the case of stolen or vandalised property, filing a police report and informing your landlord should be your first step. This will not only help with recording the series of events but will also aid with providing any records for your claim.

Any sort of claims process should be filed between 24 to 72 hours of the incident.

Filing a claim can be done by:
– Going online
– Through an app
– Over the phone
Almost all insurance companies will require proof of loss when filing for a claim. Hence why reporting to the police and your landlord could come in handy.

When processing your claim, attaching any photographs and receipts will majorly aid your insurance company in determining the reimbursement value. Additionally, it will also prove that your items are damaged or stolen.

How to file a claim without receipts:

Keeping a receipt for every item you own isn’t always possible, and most insurance companies understand that. There are other ways you can prove a loss of an item/property and indicate its value without providing a receipt.

Document your belongings

There are different ways of documenting your belongings, without having to stash your receipts.

– Photograph your items
Photographing your items upon purchase can help your insurance company indicate its worth as well as set a timestamp, proving your ownership. Taking a photo of the price tag is also the best determiner of an item’s worth.

– Video Record your items
Video recording your items is best when identifying a time stamp on when things were purchased.

Those two ways are an easy method of recording your items and could really help you in the long run when documentation isn’t found.

Check your bank statements

Checking and keeping bank statements can be your saviour for insurance claims. Credit card and bank statements help you prove your purchases to your insurance provider.

Research your item’s worth online

If you know the details of your item such as its brand, a quick online search can help determine its value at any given time.

Don’t know the details of your items? That’s still okay, you can easily reverse image search it.

Get an appraisal

With any expensive furniture or antiques, getting an appraisal is a good idea for determining its value by getting a professional appraisal. This will also give you physical evidence of its evaluation that you can hand into your insurance provider in case of an incident.

How will you get reimbursed for your insurance claim?

Upon your claim’s approval, all you’d have to do is pay your deductible before your coverage. Following that, you’d get reimbursed the remaining amount.

The two types of policies with different reimbursement methods.

– Replacement cost policy: A replacement cost policy will reimburse you the full amount of your item, regardless of its age or physical status. Although this policy sounds great, it will always result in much higher premiums.

– Actual cash value policy: This policy will reimburse you depreciated amount of your item, therefore depending on its age and condition.

Need to plan your budget? Check out Moneysmart’s budget planner to help you determine how much you can afford to pay!

How long will it take for your claim to be processed?

After lodging a claim, your provider will assign a claims adjuster to investigate the incident in order to determine the reimbursement amount. The claims adjuster will then send their findings to your provider. From there investigations will take anywhere between days and weeks, depending on the extent of the incident. Most insurance companies will have a feature on their app or website that allows you to track your claim progress.

Filing a personal liability claim

Similar to filing a personal property claim, you should always document the damage, how it was done, any injured people, and all expenses such as bills. Most importantly, in the event of someone else being injured in your home, it’s always helpful to document any eye witness testimonials. Eye witness reports always aid as evidence to the series of events that took place before and during the incident.

In the case of another person being injured, liability coverage will cover any medical and legal expenses, depending on your policy limit. It’s important to mention that personal liability claims can result in higher premiums. If any costs exceed your coverage limit, you would have to pay any remaining fees and deductibles.

Did you enjoy this article? Read more on renters insurance and collectibles coverage!