Why Do I Need Condo Insurance

Frequently, condominium owners believe that once their mortgage is paid off they no longer need coverage for their unit. This confusion stems from a misunderstanding of what the condominium association’s master insurance policy covers. For the sake of argument, assume that the master condo association policy covers all units so if there is a fire your unit will be rebuilt. This is an all inclusive policy and only covers perils such as fires in the entire building. Individual unit owners are not covered for loss of personal property nor are they covered for personal liability. So, discontinuing coverage when your mortgage is paid still leaves you liable to replace your personal property on your own and assume financial risk should someone be injured while inside your unit.

What Condo Insurance Covers

Condominium insurance policies cover three things:

  1. Personal Liability
  2. Personal Property Replacement
  3. Replacement Dwelling

Personal Liability

Personal liability insurance protects you financially if your actions cause harm to someone else. Imagine you have a party in your condo unit. A friend has brought a date to your party. During the party the date trips on a chair leg and tumbles down the stairs. Because of the injury the date incurs medical bills and also loses time from work. You receive a letter from an attorney demanding that you pay $100 thousand dollars to cover medical costs incurred and anticipated as well as lost wages. If your condo insurance includes a personal liability limit of $100 thousand you are fully protected. Without the policy you will have to hire an attorney to defend you or negotiate a settlement that you will pay from your own pocket.

Personal Property

Personal property coverage protects you in case of fire or theft. It pays you to replace items such as appliances, clothing, furniture and art and jewelry within certain limits. Be careful when purchasing this insurance, replacement cost is different than cash value. Replacement cost allows you to buy a new dryer if yours was destroyed in a fire, cash value is the depreciated value of your dryer and will not be enough to replace it – you always want replacement value to keep you well covered.

Condo Dwelling Insurance

If your condominium association does not provide unit coverage then you need dwelling insurance. Say you have a grease fire in your kitchen and the kitchen cabinets are destroyed. Fire is a covered peril and this insurance will pay to have new cabinets installed and even to repaint your kitchen.

All three perils can be combined into a single policy. The coverage is relatively inexpensive and the peace of mind tor being protected cannot be valued.

Did your Car Get Damaged by Towing?

You may be wondering what to do if your car was damaged by towing. Depending on the extent of the damage, and whether you can prove when the damage occurred, you may be able to file a claim with either your insurance company or the towing company directly. You will also need to go check on your deductible and see if filing a claim will actually benefit you or if the damages are less than the deductible.

Before you have your car towed, you need to take pictures or video of the vehicle in-case there is car damage after the towing has occurred. Sometimes the towing company will take their own pictures and document any damage to the vehicle to protect their own liability. Unfortunately, sometimes disasters occur and your car may be damaged. If the towing company acknowledges fault, you should be able to make a claim directly with the company. If they do not want to pay, you will need to file a claim with your insurance provider. This is usually considered part of your collision coverage, but you will need to check your policy to make sure you can file a claim. If you do not have the patience to deal with the towing company, you may be able to file a claim with your insurance company and they will work with the towing company for you.

If you do not know what to do when there is car damage with towing, it is probably best to talk with your insurance carrier. Remember when you are shopping around for auto insurance rates, if you want to be covered for this type of damage, you will need collision insurance. By comparing quotes with several providers, you can find a premium you can afford to pay that will also give you the coverage you need.

Is Hazard Insurance Covered under Homeowners Insurance?

Hazard insurance is part of your home owners insurance policy. This is the portion of your plan that will take care of fire or other hazards in the event of disaster. The other portion of the plan is liability insurance. This will take care of medical expenses if someone is injured while visiting your home. It is important to have both hazard and liability insurance coverage. If your home is destroyed, you want to repair or replace it as quickly as possible.

Although you do not want to think about your home being devastated by a fire, flood or other disaster, if it does happen, your hazard insurance will cover the expense of either repairing the damage or even rebuilding your home. Homeowners insurance may not be required by law, but if you have a mortgage on your home, your lender will probably require this type of protection. Since hazards vary from state to state, you will want to look at the policy and make sure you are covered for all types of disasters that are common for you area. Some areas may require special hazard coverage for flooding or hurricanes. Make sure when you compare quotes, you understand the type of protection you need.

When speaking with an agent, you can ask "Is hazard insurance covered under my homeowners insurance policy?" This will help you determine the type of plan you need and still find a policy you can afford. The best way to make sure you have a great plan is to compare rates. Do not just choose the first quote you find, when you compare both price and coverage, you might be able to get a better deal. Knowing you have top of the line insurance coverage will ensure peace of mind.

Why Renter’s Need Insurance and How to Choose the Right Policy

If you are a renter at an apartment, condo, or private home, then you have probably been wondering whether renter’s need insurance, and if so how to choose the right policy. Renter’s need insurance, and determining the correct policy for your situation is very important. Keep reading to learn the essentials about renters insurance policies.

Why Renters Need Insurance

Statistics from the Insurance Information Institute in New York reveal that renters are twice as likely to be victims of theft as homeowners are. Unfortunately, less than half of renters actually have the policy that they need to protect their belongings. Renters need a policy not only to cover the danger of theft, but also one that provides personal liability coverage for those cases where someone gets injured while at your rental. Even the basic renters insurance policies cover both personal belongings and liability on premises. Many renters make the mistake of assuming that their landlord’s policy will cover their personal contents and liability, but it will not. It you want to be protected, you must get a renters insurance policy.

How To Choose The Right Policy

The right policy for you depends upon the contents that you have in your rental. It is important that you get a good general idea of the total value of your belongings. This can be an approximate value as long as you include everything in the home. You will need to choose either "Actual Cash Value" coverage, which replaces damaged or stolen goods while taking depreciation into consideration, or "Replacement Cost" coverage, which will reimburse you the amount of replacement for stolen items at the current cost. Generally, Replacement Cost will be around 10 percent more costly.

You will also need to choose either "Named Peril" which will explain exactly which risks are included (fire, hurricane damage, and theft for example) and will not include any non-specified risks, or "All Peril" which covers any and all situations in which damage or loss can occur unless they have been specifically excluded.

Regardless of the type of policy you choose, it is vital that you keep yourself protected by getting the renters insurance policy from your agent. This policy will allow you to truly relax and enjoy your home!

Learn the Insurance Laws for Your State

Learn the Insurance Laws for Your State.Should you believe that “insurance is insurance wherever I live,” think again.While the primary components usually apply to insurance in general, individual states pass their own laws and publish specific regulations. Assume nothing. Learn about your state’s insurance laws and retain an experienced, licensed agent to advise you.

Whether you need auto, home or business insurance, become familiar with your state regulations to ensure that you purchase the proper coverage. For example, most U.S. states require a specified minimum of liability coverage for auto insurance coverage. However, the minimum amount of coverage can vary from state-to-state. Also, the necessity for multiple liability protection, including property damage and uninsured motorist coverage, may also vary.

Once you learn the minimum coverage your state requires, spend some quiet time thinking about the assets you are protecting. For example, if your state requires minimum liability insurance of $25,000 per person, $50,000 per accident and $10,000 property damage, consider this coverage in light of your personal assets. Should you own a home worth $250,000, an $18,000 boat, personal property valued at $30,000, and bank savings, checking and investment accounts with total balances of $75,000, your state’s minimum coverage is not sufficient.

As the cost of vehicle repair and medical treatment skyrockets, most state minimum coverage limits are too low to protect you should a serious accident occur. Understand that people who are injured in auto accidents can successfully sue you for their damages in excess of your liability coverage limits.

You should use a similar approach to your home insurance. If possible, insure your home for “replacement value,” instead of a specific amount only. Should serious damage occur to your home, the cost to make quality repairs often exceeds the amount of the covered loss, typically the pro-rated amount of coverage minus depreciation. With replacement coverage, your insurer should cover the total cost to restore your home to its former condition.

Always shop for the best deal within the parameters of your state laws and the amount of assets you must protect. You can save time using an independent agent with an interactive website. Instead of trekking all over town talking to agents, a multi-carrier insurance agency can give you multiple quotes from major companies that have attractive rates in your state.

Will My Auto Insurance Cover My Friend if I Let Them Borrow My Car?

Will My Auto Insurance Cover My Friend if I Let Them Borrow My Car?Many people lend their vehicles to friends and family members they trust without giving it a second thought, but this decision can lead to major consequences without the right auto insurance coverage. Determining whether or not your auto insurance will cover a friend driving your car will vary from policy to policy. At the very minimum, the law requires you to purchase liability auto insurance coverage. Liability insurance would cover you from the expenses that you would be liable for in the event that you are involved in an auto accident that causes property damage or bodily injury to another party involved. Considering the high costs of medical care and legal fees if a lawsuit were to come of the accident, liability insurance can protect you from having to drain your savings for one accident.

Unlike collision coverage, liability insurance covers the driver and not the car. This means that if a person were to borrow your car, their own insurance policy would be responsible for covering the damages that occur as a result of an accident. Therefore, it wouldn’t be a significant risk for you to let someone borrow your car, as long as that person had some form of insurance on their own. Alternatively, a friend without a personal insurance policy would be solely responsible for any incurring damages while driving your car. Although this wouldn’t necessarily affect you, it is usually best to avoid this scenario.

Letting a friend borrow your car occasionally is one thing, but if you live with someone who frequently drives your vehicle, you should consider adding him or her to your policy to ensure full coverage in case of an accident. If this situation applies to you, it’s best to talk to your insurance agent about authorizing this person to drive your car by officially designating it on your insurance plan. Having this authorization would guarantee that you both would be fully covered in case an accident were to occur.

Home Insurance for Every Home Type

Home Insurance for Home TypesAny financial loss occuring due to theft, fire, windstorms and other such perils listed under your policy needs home insurance to protect your home. In order to cover your home, it’s belongings and personal property, be a tenant, land lord or home owner needs a home insurance. Every person needs protection against liability, if any accidents occur, some one is injured or any property damage.

  • Homeowners: Shielding both home and personal property
  • Tenants: Protecting only your personal belongings and not the building.
  • Other parties: Protection against liability for injuries caused to people or accidents occurring within the property premises

The better the policy is designed with required coverages, less you will be paying out of your own pocket to cover the disasters. When your house is under mortgage then your lender might ask you to have more coverages than required. It is always better to check with your agent or the insurance company and then decide on coverages and amount required to cover your home, content and personal belongings.

How Much Coverage Do You Need?

  • Covering your property and belongings: To cover personal property, valuables and other belongings with better coverages without burning a hole in your pocket.
  • Self protection: Gives enough liability coverage to protect against legal actions resulting due to your negligence or other hazards that might occur on your property.
  • Lender requirements: Your mortgage lender will ask you to cover the house for replacement cost of dwelling or mortgage amount.
  • Policy requirements: The insurance company might impose coverage requirements for replacement cost of your house. Most of the plans will actually limit at 100% of replacement cost. However, few standard plans limit to 80% of it.

How Familiar Are You With Different Policy Forms ?

Different Policy FormsThere are different types and forms of home insurance policies for every type of house you live in. Not all Wyoming home insurance companies offer all the forms. It differs from one company to another. Hence, it becomes important to carefully read, verify and then sign on dotted line.

  • Homeowners Basic Form: Any damage due to windstorm, hail, theft, fire, riot, malicious mischief, smoke, glass breakage, personal liability and damage from vehicles is covered under this form.
  • Form 2: Homeowners Broad Form: Certain perils such as floods, earthquake, freezing, building collapse, accidental water damage, falling objects, snow, ice, bursting of heater pipe, personal liability and damage in internal plumbing are covered under this form.
  • Form 3: Homeowners Special Form: To offer more protection than form 2 by covering few exclusions such as damage to garage, or other structures and personal property loss. This is definitely more comprehensive than form 2.
  • Form 4: Tenants Form: A form for tenants which covers all perils from form 2 and also personal liability.
  • Form 5: Homeowners Form: This forms offer coverage to any damages to your personal property, its content , certain exclusions and also covers few structures and much better offering than form 3.
  • Form 6: Condominium Homeowners Form: This form is specially for condominium owners. It covers personal property, contents inside condo, liability and also portions of your building. It also covers perils from form 2.
  • Form 8: Homeowners Older Home Form: If living in a old house built really a long time ago, then form 8 covers for you. If you are the owner of a old house feel proud with home insurance for it with form 8.

How Home Insurance Liability Protects You

Home Insurance Sexuring Your HouseWhen it comes to insurance, most homeowners are concerned with coverage for the actual brick and mortar of our homes; but unfortunately, not many are aware that their home insurance liability might offer them the most amount of financial protection of their entire homeowners policies. Why? Because when a liability claim goes to court, the defendant usually winds up paying exorbitant sums in compensation, medical and legal costs. And it’s not uncommon for a defendant to go into deep debt and in the worst-case scenario, even lose his home.

What Home Insurance Liability Covers

Imagine this: a guest in your home slips on the stairs and breaks her leg. She sues you and you wind up not only having to pay her medical bills, but also her legal costs, as well as a steep hike in your own insurance rates. If you don’t have adequate home insurance coverage, this could be a very challenging financial scenario. But with comprehensive insurance coverage that includes home insurance liability, the other person’s medical and legal costs are covered, as are the costs of your own representation. This means that your finances are protected and you won’t have to worry about selling your home to pay damages.

Find comprehensive insurance coverage that you can afford by requesting quotes from a trustworthy insurance comparison site such as AgentInsure. All you have to do is fill out the information form and you’ll immediately receive up to five free, no-obligation insurance quotes, along with the contact details of an insurance agent in your area who can answer any questions you may have.

The Consequences of Not Having Texas Car Insurance

Texas Car Insurance for RescueAll states have their own set of car insurance rules. In Texas, all car owners must meet minimum liability requirements on any vehicle they drive. The minimum requirements are $30,000/$60,000/$25,000. If you do not have proof of insurance, or do not carry insurance on your vehicle, you will face tough consequences if you are stopped by a police officer.

  • The first offense for being caught without car insurance will result in a fine of at least $175 and as much as $350, in addition to any court fees.
  • Subsequent offenses will result in fines of as little as $350 and as much as $1,000, in addition to court fees, impoundment of the vehicle at your own expense, and the suspension of your driver’s license for as long as two years.
  • Once convicted, you will face a yearly surcharge of $250 for three years to maintain your Texas driver’s license.
  • Last but not least, when you finally do purchase Texas auto insurance, it is safe to assume that your car insurance premiums will be much higher than they would have been had you simply purchased insurance in the first place.

Don’t drive on the road without Texas auto insurance. Keep in mind, the state of Texas has an insurance verification system called TexasSure, so a police officer can easily know if you have insurance.