After a fire, burglary or another event in which you lost possessions from your home, it may be difficult to remember the details of every one of the belongings that you have accumulated over the years. In this situation, having a current inventory of your possessions, including make and model numbers, may help you with any potential insurance claims. Taking the time to document your belongings now can help you recover faster after a loss.
Here are some steps you can use to help build your home inventory checklist. Step 1: Take the time to walk through your property. Compiling a comprehensive home inventory takes time and effort. The more detailed your inventory, the more useful it will be if you have to make a claim. Document possessions inside your home and on your property that may be of value. Step 2: Keep your inventory in a safe place. Creating a digital home inventory and storing it off-site will help ensure that it won’t be lost, stolen or damaged during any disaster at your home. You can also create a photo or video inventory and upload it to a cloud-based service.
Step 3: Update your inventory often. When you make a significant purchase, add the information to the inventory while the details are fresh in your mind. This is also a good time to delete items that you have replaced or no longer own. Step 4: Remember your business assets. While most people think of their home when making an inventory, it is important to document the contents of your business, if applicable, as well. Step 5: Consider valuable items. Valuable items like jewelry, art, and collectibles may have increased in value since you brought them into your home. Check with your agent, if you have one, to make sure that you have adequate insurance coverage for these items as they may need to be insured separately. Consider putting jewelry or other valuables that you don’t often wear or use in a safe deposit box. To learn more about ways to protect your home and belongings, check out our homeowners insurance products.
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Buying renters insurance to protect your stuff may seem like an unnecessary expense, until you experience a theft or fire in your rented home or apartment and lose some of your most treasured possessions forever.
Whether you're a longtime renter or starting out in your first place, renters insurance policies provide important benefits and coverage. If a fire or similar incident destroyed your home and you didn't have renters coverage, it would be up to you to replace everything you own. Plus, if someone claimed you caused an injury or property damage, without adequate insurance protection, you could be at risk for an expensive lawsuit and paying that person for his or her damages. As you consider whether to buy renters insurance, here are four things you need to know: 1. Renters Insurance Provides Off-Premises Coverage Renters insurance does more than cover the cost of lost or damaged possessions in your home. There is coverage if your bicycle is stolen from a bike rack at the park, or if your laptop is taken from your car while you're at the supermarket. 2. You Can Be Compensated if You're Forced to Relocate Most renters policies provide additional living expenses coverage if your home becomes uninhabitable due to an event such as vandalism, theft, fire or water damage from home utilities.1 This benefit usually includes the cost of living expenses, up to your policy limits. This coverage typically is limited to 30 to 50 percent of your insured personal property. For example, if your belongings were insured for $100,000, the limit on additional living expenses would be $30,000 to $50,000, as outlined in your policy. 3. A Home Inventory Can Determine How Much Coverage You Need Before you decide how much coverage you need, it's important to know how much it would cost to replace your possessions. You can calculate replacement costs by conducting a home inventory and checking with your insurance representative to make certain you're fully covered.2 4. You Can Reduce Your Renters Insurance Costs There are a variety of ways to reduce the cost of renters insurance. An option is to select a higher policy deductible, the amount you must pay before your insurance coverage takes effect. Increasing a deductible from $250 to $500 could create an annual savings of up to 15 percent. You also may want to consider buying all your insurance policies from one carrier. For example, when you bundle your auto and renters policies , you receive additional savings. As a seasoned homeowner, you’ve been paying off your mortgage and are now considering buying a second home – a place you can retreat to on vacation, an investment property, or maybe even a combination of the two. You’ve been through the home-buying process before so you know what to expect, but there are certain factors unique to buying a second home that you'll want to consider. These factors will vary depending on how you intend to use the property, so it's a good idea to determine if the home will be for mostly personal use or if it will be occupied by tenants.
Here are six essential things you should consider before buying a second home: 1. Can I Afford It? It may seem like an obvious question, but can you afford a second home? If you choose to take out a mortgage on a new property, take some time to carefully understand the requirements so you’ll be better prepared for the process when submitting your mortgage application. As a homeowner, you're probably well aware of the strict credit requirements for taking out a mortgage, and things get even more serious when it comes to buying a second home. Your debt-to-income ratio will, of course, be a significant factor, and when it comes to holding two mortgages, you may find it a bit more challenging to balance this ratio. Also, be prepared to shell out a hefty amount for a down payment, since you'll be required to put at least 10 percent down on a vacation home and perhaps an even higher amount if it will be used as an investment property. And don’t forget that a second home will need to be protected, so you’ll want to talk to your homeowners insurance agent about getting a quote, once you’ve got your sights set on a second property to call your own. 2. How Will It Affect My Taxes? Understanding the tax implications of your new property will be another challenge. If you intend to rent your place to tenants, that means you'll earn rental income throughout the year, and that income will be taxable. As the owner of the home, you also may be able to take deductions in the form of mortgage interest, property taxes, repairs, depreciation, and operating expenses. One of the most important things to do as the landlord is to maintain accurate records of your income and expenses throughout the year in order to properly report the information on your tax return. 3. What Home Expenses Should I Expect? Just like your primary residence, your second home will also require you to shell out cash for expenses – both expected and unplanned. It’s helpful to have a budget set up for home needs, and with two homes, this may be an even more critical step, since your expenses will be elevated. In addition to the maintenance costs, remember you'll have property taxes, insurance, potential homeowners' association dues and more. If the property is at the beach or in a flood zone, you'll also need to consider things like flood insurance in addition to your regular homeowners policy. And finally, if you plan to rent the property, you'll also need to look into insurance that specifically protects you as a landlord. Travelers wants to help you protect the things that matter to you. We offer a wide breadth of products so you can be covered at home and on the road. 4. How Will I Use the Property? If the property will solely be used for personal vacations, this question isn't as critical. However, if you intend to rent the home occasionally or full time, you'll want to consider your strategy ahead of time. Keep in mind that for mortgage purposes, your lender doesn't consider the income generated from renting the home. Whether you can afford the second property is determined solely based on your credit and debt-to-income ratio. If you plan to rent the home, it's important to build your rental strategy as early in the process as possible to ensure you'll have rental income that can help offset the home's monthly expenses from the start. That will translate to less cash out of your pocket, as long as the tenants are diligent in paying the rent on time. 5. Who Will Maintain the Property? You’ll want to plan for who will maintain the property to protect your investment. If the investment property is located near your primary home, it may be easy for you to provide the regular maintenance and upkeep of the home, if you’re handy and have the time – and the will – to do those tasks. However, if the property is far from your primary home, you'll need to think about how it will be cared for when you're not staying there. This is especially important if the property is located in an area that’s susceptible to strong storms and hurricanes. Severe weather events can pop up at a moment's notice, and your second home will need to be properly prepared to withstand such weather. If the home will be for your personal use, perhaps you can find a neighbor to keep an eye on the house when you're not there. If you plan to rent the home, consider hiring a rental management company to take care of the general upkeep so you won't have to worry about every little detail from afar. 6. Is the Property in an Ideal Location? Whether buying a second home for your personal enjoyment or as an investment property, make sure you choose the right location for your needs. You may not get as much use as you’d like from a vacation home that requires extensive travel to get there. And, a rental home in an unpopular locale may lead to months of being unoccupied – which means you’re paying the second mortgage yourself rather than with income from renting it out. In either scenario, ensuring the home is in an ideal area can help provide you with a positive return on investment. If you do intend to rent the property, take some time to research the rental climate in the area before moving forward. The best places to own investment property are often popular vacation destinations and cities with an abundance of career options. Buying a second home doesn't have to be daunting. In fact, with careful research and planning, it can be a smart investment for your future. What’s your biggest challenge at home? For many of us, it’s a lack of space.
So how can you carve out an extra bedroom, a home office or a study nook for a school-age child? The answer may not be as out-of-reach as you think. Here are four solutions for a range of spaces and budgets. 1. Transform the Garage Are you wishing for a home gym, an artist’s cottage, an office, a family room, an in-law suite or a rental apartment? Your garage may be the answer. Both attached and unattached garages can be converted into an extra room. To get started, research local building codes and zoning ordinances. If you belong to an HOA, you’ll need to check their rules, too. If you’re doing more than small cosmetic changes, it’s also a good idea to consult with a professional architect, engineer and contractor. 2. Consider a Prefab Shed Modern and inviting, a prefab shed is an easy way to add a room if you don’t have a garage to work with. And unlike with a garage remodel, you may not need a permit for installation. 3. Convert the Attic or Basement As with a garage, an attic or basement could be remodeled into an inviting living space for a variety of uses. Consider adding a half-bath and/or kitchenette if you have the budget and want to create an in-law suite or apartment. 4. The “No-Remodel” Option Finally, there are less expensive and invasive ways to create more space in your home. With more people working remotely, closet offices have become popular. Scan your space for any closets and corners where clutter has accumulated. How could these nooks be put to better use? Have questions about your insurance coverage? Is there anything else we can help with? Reach out anytime. Tips for buying hurricane insurance Follow these tips to be sure you have adequate hurricane protection for your home.
What does hurricane insurance cover? There is not a type of insurance specifically called “hurricane insurance.” So, does homeowners insurance cover hurricane damage? Most standard homeowners policies will cover damage caused by hurricanes except for flood damage and, in some areas, wind damage. Those who live along the East Coast or Gulf Coast, which is where hurricanes most often occur in the U.S., may need to buy an additional windstorm coverage policy. You would also need to buy a separate flood insurance policy. A common misconception is that a homeowners policy covers flood damage. It doesn’t. What hurricane damage doesn’t cover Wind damage. Wait, what? Isn't wind practically the definition of a hurricane? And you're telling me that my insurance may not cover me if there's a hurricane? Well, yes, you may not be covered if there's a ton of wind - and you live in an area that gets a lot of hurricanes. Now, suppose you live off the beaten path of a hurricane, in, say, Ohio and Indiana, which, believe it or not, can occasionally get the remnants of a hurricane plowing through the neighborhood. In that case, you probably are covered for hurricane winds. But some insurance policies won't cover wind in a hurricane - again if you live in a hurricane zone. If you live in such a place, you may need to buy a separate windstorm insurance policy. Talk to your insurance agent, though. It's never good to assume anything with insurance. Flooding. Many insurance policies don't cover flooding unless you have purchased a separate flood insurance policy. If you live anywhere - hurricane zone or not - that sees a lot of flooding, you really should look into purchasing flood insurance. Mudslides. So, a hurricane created a mudslide, and your house is under that, and your insurance won't cover that? Yeah, you almost certainly aren't covered. Sorry. Insurers have this weird thing about "earth movement." They won't cover you for earthquakes or any time the ground shifts under your house for some reason, and a mudslide is considered, well, the earth moving. But you might be covered for a mudflow, where a flood brings mud into your home. Sure, it seems crazy, and you're probably now thinking that this is why some people drink heavily. But insurance companies become very exact when it comes to how they define coverage and natural disasters. Power failure. Insurers get very exact and weird here, too. Let's say that you have a freezer full of ribs and steak and seafood. You're about to throw a big party. Anyway, the power goes out, and you lose all of that food and are out a lot of money. If this is a one-off incident, where your house lost power, and nobody else did, your policy probably covers that. You've probably thought about what would happen to your home in the event of a disaster, but have you considered your personal belongings? Fortunately, whether you're a homeowner or a renter, your insurance policy has you covered. The question is whether your current personal property coverage is enough. If your possessions have multiplied over the years — or if you own special, high-value items — you may need additional protection. What’s personal property coverage? Personal property coverage, or contents coverage, protects your belongings, including furniture, clothing, jewelry, appliances, electronics and art. It insures the stuff that’s not part of your home’s structure (or permanently attached to it) against theft and accidental physical damage or destruction. Personal property coverage also protects your belongings when you’re traveling or doing things around town. How much coverage do you have? Every policy will be different. For home insurance, your personal property limit is usually 70% of the insured dwelling value. In some cases, it can be more or less depending on your home. If you rent your property or if you own a condo, it’s easier to tell how much coverage you have because your policy doesn’t cover the building. (The landlord’s or condo association’s policy covers that.) Check your policy’s declarations page or get in touch if you’re unsure about your current coverage. Should you increase your personal property coverage? You may want to purchase extra personal property insurance through a rider or scheduled coverage if you own the following items:
Are you wondering whether something you own is valuable enough to warrant additional coverage? Reach out anytime. If you're looking to sell your home — and get top-dollar for it — staging the property can help you do it.
Put simply, staging means preparing the home for a potential buyer — or "setting the stage," if you will. It involves redecorating, rearranging furniture, cleaning and other aesthetic strategies to present the home in the best possible light. The goal is to make the home as appealing as possible to the most potential buyers. Benefits of Home Staging Home staging comes with many benefits. For one, it can make it easier for potential buyers to envision themselves in the home. It provides a clean palette of sorts — one without clutter, personal photographs and other items that might turn off a buyer or make it hard to imagine themselves living on the property. According to a study from the National Association of REALTORS© (NAR), 77 percent of buyers say it's easier to visualize a staged property as a future home. Staging also makes a home look more "move-in ready" — meaning that it doesn't seem to need a lot of work or repair before a new buyer could move in. Seventy-one percent of buyers are looking for a move-in ready home. Staging could help give that impression, which could be a nice advantage for you in successfully selling your home. Finally, staging a home makes it easier to market. It looks better in listing photos (which can play a big role in today's home-shopping process), and it is also more eye-catching when shared on social media, printed on flyers and displayed in other visual marketing mediums. As a result, staged homes typically sell faster. According to NAR, 62 percent of agents say staging has an impact on a home's time on the market. Options for Home Staging You have a few options when looking to stage your home. You can choose to do the process yourself (DIY); you can look to your real estate agent for help; or you can bring in a professional staging company to do the work on your behalf. In some cases, you could also do a combination of these options.
Though these pros do come at a fee, they typically do the work for you. They will evaluate your home's current condition, make recommendations on how to improve its overall appeal to potential buyers and marketability, and then put those suggestions into action by rearranging the furniture, bringing in new décor or helping you declutter. Often, stagers have a large inventory of furniture, décor, artwork and other items they can pull from to help your home look its best. Just be aware that using a stager's inventory may come with an extra fee, so be sure to ask about that. How Much Does It Cost to Stage a House? According to the National Association of Realtors, the median cost of home staging is $675.4 These costs vary, though, and depend on several factors, including the size, location and price of the home, the exact type of staging services you're looking for, and whether you need additional furniture, décor or other items in your staging efforts. Some agents recommend spending between 1 to 3 percent of your home's listing price on staging. If you're staging your home yourself, you'll want to consider the costs of things like:
Consider shopping at thrift stores or second-hand shops for any new décor or furnishings you might need. You might also want to focus your staging efforts on only a few rooms — higher impact areas like the living area, the kitchen and the master bedroom. Is Home Staging Worth it? From a financial standpoint, staging can add measurable selling appeal to a home. According to NAR, nearly a third of real estate agents say staging increases the dollar value offered by buyers, in comparison to similar homes, by 1 to 5 percent. Another 21 percent of agents say it increased the dollar value of the home between 6 and 10 percent. To determine if staging a house is worth it, you'll want to consider a few things, including:
Home staging may increase the likelihood that you'll sell your property and do so quickly, and for top-dollar. If you're on a tight timeline or looking to boost your profits on the sale, home staging can certainly help. It also can be beneficial if your market is particularly competitive for sellers by ensuring your home is memorable, beautiful and stands out from the rest. If you're ever unsure of whether staging is in your best interest, consider speaking to a local real estate agent. They can help assess your property as well as make recommendations based on the market and preferences of local buyers. Selling your home is an important life moment. Why not also take it as an opportunity to review your homeowners coverage? Owning a home can mean dealing with the unexpected – from a tree falling on your roof to a pipe bursting in your bathroom. Because you likely can’t prevent all unwanted surprises, knowing what to expect if you have a homeowner’s claim can help give you some peace of mind.
While insurance carriers can handle claims in different ways, here are some basic steps in the process. If Your Home Has Been Damaged:
Beginning the Claim Process:
We are an insurance company that cares. We help you get the coverage that meets your needs to help protect the things that are important to you, so you don’t have to worry. Relocating After a Loss:
Resolving a Claim:
Protect your home the way it protects you by choosing the property insurance coverage that meets your needs. From your standard policies to the types of insurance you forgot about, here’s what you should know about coverage. When most people hear the word “insurance,” they first think of the standard trio of home, life and auto coverage (and for good reason — those policies are important). But many people would benefit from additional protection provided by policies they may not even know exist. Here’s a refresher on the basics as well as a few commonly overlooked policies to consider. Homeowners insurance It’s up to you to choose the policy and limits that meet your needs, but it’s best to insure your home for at least 100% of its estimated replacement cost — the cost of repairing or replacing your home to restore it to its original condition. Estimated replacement cost is different from market value or purchase price. If you select a homeowners policy amount lower than the estimated replacement cost, certain coverages may be unavailable to you. Periodically review your policy and limits with your agent and notify your agent of any changes or additions to your home. Car insurance Auto insurance is required in almost every state to operate a vehicle — but the cost can vary widely. This is partially determined by your vehicle type, your age as well as your car’s and the coverage level you select, but it can also be affected by other factors. People who live in densely populated areas — noted for higher occurrences of crashes and theft — will likely pay more for auto insurance than those who live in rural areas, where crashes and theft are less prevalent. Flood insurance Homeowners policies typically exclude flood coverage. Adding coverage may be worth looking into, no matter where you live. According to FloodSmart.gov, more than 20% of all flood claims happen in moderate- to low-risk areas. Agents enrolled in the federal government’s NFIP Direct Program are able to write and service flood insurance policies for qualifying homes directly through that program. Personal articles policy While home policies typically cover many items inside the house, a personal articles policy provides even broader protection. This can include coverage for items ranging from jewelry and fine art, to cameras, musical instruments and sports equipment. In most cases, a personal articles policy has no deductible and will cover the full replacement cost of your items anywhere in the world. So if you’re on vacation and someone runs over your expensive skis or snowboard with their SUV, this is the policy you need. Off-road vehicle insurance Insuring your car is one thing. Insuring an off-road vehicle — such as a snowmobile, golf cart or ATV — is another. An off-road vehicle policy can cover you in case of bodily injury or property damage as well as damage to the vehicle itself due to accident, theft, fire, vandalism and other losses — even when in storage. Disability insurance Most people protect their family from the prospect of lost income in the event of their own death through a variety of life insurance. But disability is another important consideration. If you’re unable to work due to sickness or injury, disability insurance can provide protection to help you pay your mortgage, rent, car loans and other regular living expenses. Short-term disability insurance provides funds to help you meet monthly obligations in the case of a temporary illness or injury, while long-term disability policies help replace lost income in case you become permanently disabled. Renters insurance Just because you don’t own a home doesn’t mean you don’t have a home that needs protecting. And yet, well under half of tenants have one of these insurance policies. Renters insurance (sometimes called “apartment insurance”) covers personal property such as electronics, furniture and clothing from loss due to factors such as fire, water damage, theft or vandalism. Renters insurance even covers your stuff when it’s not in your apartment. If your laptop is stolen from your vehicle or your bike is stolen while you’re at work, for example, these losses are likely covered. If you need to file a claim, a case manager will work directly with your credit card companies, credit bureaus, creditors and other financial institutions for up to a full year after a covered incident to restore your identity. The coverage also covers up to $25,000 in reimbursements for necessary and reasonable expenses incurred to restore your identity — including credit reports, notarization and attorney’s fees. Pet insurance While your family may have health, dental or vision insurance, those policies don’t extend to your four-legged family members. Pet insurance lessens your financial burden when it comes to medical care for your pet and often includes tests, surgeries and the treatment of breed-specific conditions. That can mean fewer tough decisions and more time spent with your furry best friend. Umbrella insurance No, this isn’t insurance to cover your collection of antique parasols. Rather, a personal liability umbrella policy provides protection in case you experience a major insurance claim or lawsuit. While underlying insurance policies such as home and auto do provide some protection, an umbrella policy can cover claims and judgments above the standard limits of those other policies — typically at a very reasonable price. Personal liability insurance also may cover against certain claims (such as defamation of character, libel and slander) that are typically not covered by other policies. The next time you need to renew your insurance policies, consider taking these steps to make sure you have the proper coverage for your property.
Most often, people purchase a homeowners insurance or renter’s insurance policy when they first move out and into their new home. And it ends there. Over time, as they make renovations, purchase new items or replace existing appliances, they don’t review their policies to ensure they are properly covered. This, unfortunately, can lead to a gap in their coverage. What steps should I take to review my homeowners insurance? The next time you need to renew your insurance policies, consider taking these steps to help you get the most out of them.
Carefully review the limitations on coverage and exclusions on all your policies and make your agent is aware of any significant changes in your life. Some items in your home might qualify for extra protection. For example, you may need more protection for jewelry and firearms. Business in the home coverage can protect furniture and equipment used for business purposes. Talk to your agent to make sure you're not overlooking important add-ons to your policy as well as sharing any significant changes in your life. Feel free to contact us if you have any questions about your home insurance coverages. |
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