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The Royersford Insurance Agent

Not all College Kids Need a Renter’s Policy

Marshmallow man

 

 

I was talking with a potential client last week about his Homeowner’s Policy. He gave me the basic details of his house; square footage, finished basement, fireplace and other details that I needed to figure out how much coverage needed to be on the house.

 

This, by the way, is a fantastic thing to discuss with your agent to make sure you are not paying too much for your Homeowners policy.

 

Then he said something that I had not heard before. He mentioned that his current policy has an endorsement that provides liability coverage to his son who goes to West Chester for college.

 

I was unaware of this. From what I understood, all college kids needed a Renter’s policy to make sure they had A.) Liability Coverage and B.) Coverage for their personal property.

 

I called the Travelers Underwriter and ran it by him. “Is there an endorsement that enables us to extend Liability coverage to kids away at college?” In fact there is. Turns out it’s incredibly inexpensive too!

 

With Travelers, the minimum premium on a Renter’s policy is $150. The cost of this endorsement is only about $15! On top of the extension of Liability coverage, a Homeowners policy can also extend property damage coverage.  Usually this is only 10% of the amount shown on your policy for Personal Property. But 10% is usually more than enough. So you really do not need a Renter’s policy for a college kid.

With Safeco Insurance you don’t even need the endorsement.  The coverage automatically extends over to the college kid away at school!

 

The exception.

 

Of course there may be an exception. If the landlord or apartment requires that the child have a policy in his or her name then you may have not choice. You may need to get them their own policy.  Also, if your child has any high value items, like musical instruments, jewelry, computers or an expensive bike, we would recommend a separate policy, called a Personal Articles policy.

 

These policies are also pretty inexpensive and could end up saving you a ton of money in the long run.  So although Renter’s policies are never a bad idea, especially given the low cost, they may not be necessary.

 

As always, consult your agent to make sure you are doing what’s right for you.

 

My name is Keith Laskey. My goal is to educate the everyday consumer and to help them make intelligent decisions with their insurance policies. Please contact me at my office, 610-948-4830 or Email Me for any insurance related questions or concerns. You can also visit the Ron Black Agency website or like us on Facebook! Thank you for stopping by, have a great day!

What’s Covered if I lose a Diamond on my Ring?

We talked about what would be covered if you had a valuable piece of jewelry lost or stolen on this post.  As a reminder, if you own something valuable that you would replace if it was lost or stolen, then you need to get a separate policy, usually called a Personal Articles Policy (PAP) or Inland Marine policy, as soon as possible.

I lost my wedding ring in the Atlantic Ocean near Bethany Beach in DE.  Like an idiot, I didn’t have it on our PAP.  So now I have a ring that cost half as much as my original ring.  Not to mention a wife that wasn’t exactly thrilled with my mishap.

This post is about a different situation…

 

.  Ring - Side View janet lackey via Compfight

 

 

What if you were to lose a single diamond from your ring?

We recently wrote a PAP for a newly engaged couple.  The soon to be husband emailed me and asked what would happen in this situation?  I wasn’t 100% sure so I called a friend of mine who works as a Unit Manager in the Homeowners claims dept at Travelers.

On a Travelers Personal Articles Policy, if you were to lose a diamond in a ring Travelers would pay to replace the diamond with the same clarity, color and weight.  This is assuming the ring is undamaged.  If the ring were to be damaged then Travelers would pay to repair the ring if possible or to replace it if not.

 

Pre-Loss Condition

Travelers will certainly pay what is needed to put you back to where you were before the loss (damage) occurred.  However, they will look to pay as little as possible.  Meaning they are not going to replace your ring because if it is scratched and you lost a diamond.  They will only do what is necessary to put you back to the pre-loss condition of the ring.

 

Cost of a Personal Articles Policy

Personal Articles Policies are very inexpensive.  The most recent proposal I gave to a client was $100 for a 12-month policy for 2 pieces of jewelry valued at $8,300.  There is no deductible on this policy.

 

PAPs are good idea for many of your valuable items.

Again, if you have something that is valuable (jewelry, fine art, china, stamp or other collections, bicycles) than you should call your agent and get a Personal Articles Policy as soon as possible.

 

My name is Keith Laskey. My goal is to educate the everyday consumer and to help them make intelligent decisions with their insurance policies.  Please contact me at my office, 610-948-4830, for any insurance related questions or concerns.  You can also visit the Ron Black Agency website or like us on Facebook!  Thank you for stopping by, have a great day!

 

 

How Insurance Companies Handle Claims for Lost or Stolen Jewelry

Personal Property

 

 

Do you need to insure your valuable items on a separate insurance policy in PA?

In Pennsylvania, insuring valuable items on a separate policy is a relatively inexpensive way to ensure you have coverage in the event the valuable items are lost, stolen or damaged.  And if you live in the suburbs, like Royersford, it’s even less expensive.

These policies are most often called, a Personal Articles Floater or a Personal Articles Policy.  The purpose is to insure the items at an agreed value with a low deductible or no deductible at all.

A separate insurance policy is perfect for a college student bringing valuable items to school.

 

 

What is considered a valuable item?

 

Jewelry, fine arts, computers and iPads, bicycles, expensive cameras.  These are the most common items that are insured on a separate policy.

A Nervous Groom

A Nervous Groom getting ready to Tie the Knot!

 

Doesn’t your Homeowners policy provide coverage for these things?

 

Yes it does.  However, there are a few major negatives to not having a separate policy.  If you go through your Homeowners policy….

  1. You are subject to the Homeowners Deductible.  This could be as low as $250 or as high as $1,000 or in some cases even higher.  With a separate policy, in most cases the deductible is ZERO!
  2. You will lose your Loss Free Discount.  If you are receiving a Loss Free Discount and you submit a claim you will lose the discount.  I have seen the discount as high as $400.  You WILL lose that discount if you submit a claim and it is paid for any reason.
  3. There are limits on your policy.  For example, our most common Travelers Homeowners policy offers a limit of $3,000 to an insured if their jewelry is lost or stolen.  This means you can not collect any more than that amount for lost or stolen jewelry.
  4. You now have a claim on your record.  Just one claim makes it difficult to find a competitive price if you shop your policy with other carriers.

 

Story Time!

 

We had an Insured a few months back that had about $7,000 worth of jewelry stolen from her house.  The thief was a neighbor who was able to get in the house while the Insured was not at home.  By the time our Insured realized the jewelry was missing the thief had pawned all of it.

The neighbor was caught and arrested but the money or jewelry has not been recovered.  She did not have the jewelry insured on a separate policy.  Therefore, she was only able to receive $3,000 from Travelers.  She did not have to pay her deductible because the amount of jewelry stolen exceeded her policy limit.   But she did lose her loss free discount.

The Insured inherited the jewelry from her mother a few years ago.  If you inherit jewelry or if you make a big purchase, like an engagement ring or computer or something else with high value, be sure to let your agent know.

 

What is the Cost?

 

I live in the suburbs of Philadelphia.  For $5,000 worth of coverage for jewelry, the cost is $60 for the year.  $120 for ten thousand dollars worth of coverage.  In Philadelphia, the cost is $85 for the year for $5,000 worth of coverage.  That is the cost for a policy with a zero dollar deductible.  Read this post if you are looking for ways to save on your Homeowners policy.  This one may help too.

 

A separate policy for your high value items is a no-brainer.  The cost is minimal and the things you are insuring have a lot of meaning to you and will need to be replaced if they are lost, stolen or damaged.  In some cases, like electronic devices, receipts will be sufficient to prove the value.  In cases like jewelry, antiques and fine arts an appraisal may be required.

 

If you have lost a valuable piece of jewelry and you want to try and get it back, there is a company that can help you.  The Ring Finders is an online directory of metal detecting specialists that will help people find your list jewelry.  Check them out today if you have lost something you want to get back!

 

This is not something you want to put off.  Feel free to contact me with any questions or concerns.

 

My name is Keith Laskey. My goal is to educate the everyday consumer and to help them make intelligent decisions with their insurance policies. Please contact me at my office, 610-948-4830, for any insurance related questions or concerns. You can also visit the Ron Black Agency website or like us on Facebook! Thank you for stopping by, have a great day!

 

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