How Far Back Can I Claim My PPI? A Question On The Minds Of Many

At present there is the ongoing scandal of insurance mis-selling (this has been going on in the UK for a number of years and there are cases of miss sold PPI dating back more than 20 years), this is a financial scandal that has been raging for more than a decade with a number of different ppi claims companies’ handling claims for customers (in some cases claimants have hired their own independent solicitors or even pursued a PPI claim themselves).

When it comes to payment protection insurance claims (PPI claims for short) some examples of important questions on peoples minds at the moment are questions such as “how far back can I claim PPI?” Expanded Meaning: “how far back in time can my payment protection insurance policy be before I’ll be unable to make a claim for compensation?”.

The reality is: with a PPI claim there is officially no formal time limit (some people have successfully claimed compensation from miss sold insurance policies dating back over a decade).

However there is a complexity: Something which is known as the “six year time limit”

Six Year Time Limit?

This is basically the statutory time limit for which banks and other financial corporations have to keep a record of payment protection insurance policies.

If your claim is dating back to longer than six years ago this does not necessarily mean that you will have issues with making a PPI claim, what it means is that it is possible that the company that miss sold the PPI to you in the first place has no record of your PPI policy.

What Happens If They Have No Record Of My PPI Policy?

There are ways around this, the most obvious way is to check if you have any of the original paperwork that goes with your original PPI policy, if not, this is not necessarily an issue, there may be other ways to prove you paid into a PPI plan, this is more a matter for expert PPI solicitors to look into rather than something to make speculative estimations on however.

Rest assured: people have successfully reclaimed PPI on policies that go back much longer than six years, so as stated above this does not necessarily pose a threat to a potential claim at all.

How About If I Have My Original Paperwork?

If you have your original paperwork there is no problem, you have supporting evidence to prove you paid into a PPI policy and thus you have a solid foundation to find out whether or not you have a valid PPI claim.

Many PPI Claims companies can help you claim PPI even if you don’t have the original paperwork, one example of such a company is: this company who are known to be actual “PPI solicitors” which gives them additional abilities to facilitate your claim, however there are also other PPI companies’ that can handle your PPI rebates, a simple search will reveal a number of companies that can handle your case for you.

You also have the option to handle the claim by yourself and save having to pay any commissions out to claims management firms, however this can be a lengthy process and may require more than just patience, (many PPI claims end up having to be submitted to the financial ombudsman service and pursued further should the banks try to reject a claim.) However, on the balance it is possible also to claim PPI without the use of a solicitor or a claims management company.

The PPI Scandal is one of the largest scale mis-selling scandals of all time, there are funds allocated to compensate members of the public who have experienced this kind of mis-selling so it is advisable to at least make enquiries if you have a suspicion that you have had PPI on either a loan, credit card, mortgage, or other financial arrangement.

Final Tip: If you do intend to claim compensation it is sensible to claim as soon as possible due to the fact that there is a deadline being implemented by the FCA meaning that any outstanding PPI claims will need to be submitted before the deadline of August 29th 2019, so submit your case as soon as possible.

When Leasing a Car Makes Sense for Young Families

leasing a carYoung people starting out have a lot of expenses associated with starting a family. They not only have the expenses related to purchasing a home, they also need to purchase food and clothing for their children as well as pay their school tuition. One way to reduce the amount of money spent on necessary items every month is to lease a car rather than purchase it. There are many advantages to leasing which can benefit a young family.

The first advantage is the reduced amount required for the monthly payment. Rather than having to pay several hundred dollars each month, a lease payment can be half the amount of a standard auto loan payment.   With car leasing going in the family friendly direction, more and more benefits are being offered to entice young families.

In addition to having a lower monthly payment, people who lease vehicles do not have to pay a large amount of taxes on the car they choose to lease. In contrast, purchased vehicles require the taxes on the full amount of the purchase price be paid at the time of the sale. A lease is also set up as a different contract agreement than a financial loan. Most people who choose to purchase a car take out loans in order to pay for the vehicle they choose, The payment period for these loans is stretched out over a long period of time, which can tie up necessary funds a young family might need for other situations.

One of the better benefits to leasing a vehicle is the maintenance and warranty coverage provided on the car. No wonder top business fleet management companies are headed in the leasing direction!   When purchasing a vehicle, the owner is responsible for all of the fees associated with maintaining the car unless they are still under warranty. Leased vehicles have warranties which cover the maintenance for as long as the person continues to lease the car. This also saves families money over the cost of having repair work done to their vehicle.

Another beneficial advantage is the ability to bring the car back to the dealer to terminate the lease or make an exchange. Many people who lease vehicles find it an easy and economical way to trade up to newer models. Many dealerships also offer customers the option of buying their leased car when the lease expires. This also saves money over having to come up with the cash amount for making a purchase right away. By deferring the purchase for a year, families have time to build up their savings so they can afford to get the car of their choice.

photo by brettlevin

Don’t Let a Tight Budget Keep You from Saving Money

When money is tight, people often give up on the idea of saving any. As soon as a paycheck arrives, the majority of it may be depleted to pay bills. Even if you are dealing with an extremely tight budget, there are still ways to save money.  The trick is to either make more or spend less. If making more isn’t an option, you will have to find ways to cut costs. The following tips are sure to help.

Seven Tips for Saving Money on a Tight Budget

  1. Give Yourself a Weekly Cash Allowance  – If you usually use a debit card to make purchases, you can easily spend too much. At the beginning of every week – or whenever you get paid – withdraw a specific amount of cash. The cash will have to last until the next week or until you get paid again. If you run out before then, you will just have to make do. You’re sure to be surprised by how little cash you actually need on a daily basis.
  2. Slash Your Car Expenses  – Most people need cars. There are ways to cut your car-related expenses though. Switching to a cheap car insurance  policy online can help. Driving less is helpful too because you’ll use less gas, and your insurance company might give you a lower rate too. Ride your bike and carpool whenever possible.
  3. Buy Used  – There is nothing wrong with buying used. In addition to saving a lot of money, it lets you do your part to help the environment. You can buy everything from clothes to cars on a second-hand basis. Used items are readily available at local thrift stores, and you can also find deals on used items on sites like eBay and Craigslist.
  4. Save Up for Major Purchases  – It’s tempting to give into the urge for instant gratification by financing a major purchase, but it’s a lot smarter to pay for things in full instead. Whether you want a new TV or a new sofa, start socking away money. Before you know it, you’ll have enough cash to buy what you need, and you’ll save a ton of money on interest fees.
  5. Maintain a Good Credit Score  – Having bad credit can cost you dearly. It can affect everything from auto insurance rates to the types of loans that you can get. Even if you still qualify for a loan, having bad credit will mean higher interest rates. Make your payments on time and monitor your credit.
  6. Prepare Meals at Home  – Dining out is expensive. Come up with a weekly meal plan and go on one major shopping excursion per week. If possible, get a membership to a warehouse store and buy staples in bulk. Try to prepare lunches for work and school ahead of time to stay ahead of the game. Treat yourself to one nice meal out per month to keep yourself on track.
  7. Negotiate the Best Interest Rate Possible  – Even if you have good credit, you shouldn’t just settle for the first interest rate that’s offered to you. It never hurts to try to negotiate a lower rate or a better deal. If your credit card interest rates are high, call your credit card companies and try to have them dropped. Even if they only go down a little, you will spend less and save more.

Regardless of how tight your budget may be, you should always try to save as much as possible. Your nest egg may just come in handy some day.

Anthony King a Financial and Insurance specialist who writes for CheapCarInsurance.net.

Myths and Truths About Long Term Care

long term careI just read some staggering Long Term Care statistics in Forbes;

71 percent of Medicare recipients mistakenly believe Medicare is a primary source for covering long-term care.

87 percent of people under the age of 65 mistakenly believe their private health insurance will cover the cost of long-term care.â

The article focused on long-term care insurance, and contains a wealth of information about the long-term care landscape.   Perhaps it’s to be expected that most American’s under the age of 65 wouldn’t know all the ins and outs of long-term care, but it was surprising just how misinformed the general public is in regards to Long Term Care, especially considering Americans are now living longer than ever and the cost of care is rising.

So you ask yourself, if Medicare nor private insurance is not the primary source for covering the costs of long term care, then who is responsible covering the costs?   Good question.   Generally, there are three ways to pay for long-term care, each with their own very different ramifications.

Public Funding

This includes Medicare and Medicaid. Medicare can help pay for some expenses, but there are rigid constraints that need to be met. For anyone with a long-term condition requiring constant care, Medicare will generally not cover those services.

Medicaid is for the indigent; you have to be below a certain income threshold to qualify. If you have financial assets you’ll need to spend them down or place them in a family member’s name in order to qualify. One needs to carefully consider whether these options are viable.

Self-Funding

A small percentage of people might be able to pay for care out-of-pocket or with the help of family and friends. Again, one needs to consider the long-term effects of needing to spend significant amounts of money on care. A hard-earned nest egg can quickly disappear with large medical expenses, not to mention the enormous emotional toll that comes from relying on family and loved ones for help.

Long-Term Care Insurance

Finding a long-term care insurance policy that allows you to find care in the type of facility and state of your choice, and also does not exclude certain common conditions including stroke and Alzheimer’s disease, is often the only way to ensure you have control of financial, emotional, and physical well-being when you need it most. The younger you solidify your long term care plans, the less expensive the policy will be, as the state of your health affects policy cost. It’s important to give some thought to your future before it becomes a necessity.

photo by  14646075@N03

The Wisest Way to Buy Full Coverage Auto Insurance

Buying auto insurance isn’t at the top of anyone’s list of â˜Favorite Things To Do’; and for good reason. You can spend hours on the phone shopping around, and the premium you wind up paying isn’t something to jump and shout for joy over. Still, you need to shop around and get those quotes in order to get the best deal on auto insurance coverage. Here’s the wisest way to get full coverage auto insurance quotes no matter what state you live in.

Know What You Want And What You Get
The best way to shop for any auto insurance coverage is to know what you want before you begin shopping around. This takes all of the guess work out of it, and helps you from being persuaded by the insurance agent to take out coverage you really don’t want or necessarily need. First, understand what full coverage is and what it actually covers, because of course, it doesn’t actually cover everything.

Most often, the term â˜full coverage’ refers to a policy that includes any state-mandated coverage in conjunction with collision and comprehensive coverage. Many consumers unknowingly believe that full coverage covers any, and all, damages incurred in an accident. This isn’t true. For instance, not all states require you to have uninsured or underinsured motorist coverage as part of their minimum requirements; it may not be included in the full coverage quote you get, either.

The best way to understand what the coverage options are, and what they cover is to go online and read about each one. This is important because full coverage isn’t the same thing among all insurance providers. Once you understand what full coverage means in your state you can start shopping around.

Get Multiple Quotes

The wisest way to buy full coverage auto insurance is to get multiple quotes and compare them with each other. The trick to this is to make sure that each quote is for the same type and amount of insurance. If they aren’t, you won’t be getting an accurate feel for what the best offer is.

Don’t be afraid to let the auto insurance agents you speak with know that you’ve contacted other carriers. Bottom lineâ”they want your business, and knowing that they are up against other insurance companies gets their competitive juices flowing. Also, if they start trying to convince you to take out additional coverage, or a higher amount of coverage, hold your ground, and stand firm with what you want.

Discounts & Deductibles

A few more ways to shop wisely for full coverage auto insurance is to ask if there are any discounts you qualify for. Also, see if you can take out a higher deductible amount. This should bring down the cost of your monthly premium. A higher deductible isn’t necessarily a bad thing and here’s why:

Many drivers never wind up being involved in an auto accident which means they never end up having to pay a deductible anyway. And, even if they should be involved in an accident, there’s a good chance the amount of money they saved on their annual premiums will still be less than the additional amount they’ll have to pay with a higher deductible.

Buy Disability Insurance or Go Broke!

disability insuranceDisability insurance is typically not a very hot topic.   If you’re with some friends at a party and someone brings up disability insurance, you are sure to get a couple boos.   It’s quite possibly one of the driest subjects out there, however it’s one of the most important decisions you could ever make!

Working in the construction industry, I know how painful loss of income can be.   I’ve seen construction workers injured severely and seeing them go without the ability to work is truly heart breaking.   Unfortunately, most of the workers I know never take our disability insurance.   And this is not just important for the construction industry.   Loss of income can affect any industry; no one is really safe from a health disaster!

I scoured the internet and found a couple statistics that I found interesting.   They are somewhat shocking and you may already be dialing a disability insurance company after reading these:

-Three in 10 workers entering the work force today will become disabled before retiring.

-71% of American employees live from paycheck to paycheck.

-Over 51 million Americans are classified as disabled, representing 18 percent of the population.

-The average long-term disability absence lasts 2.5 years.

-In the last 10 minutes, 498 Americans became disabled.

Shocking isn’t it?   Well good, that was my goal!   So now that you’re somewhat scared, let’s get into what disability insurance is and go over some basics.

 

What is disability insurance?

At the core, disability insurance protects your income up to a certain amount if you are away from due for long periods of time due to an illness or injury.   Basically, disability insurance ensures that you have a steady paycheck coming in when you are no longer able to work.   This can be a peace of mind especially for those who work in labor heavy industries.

 

An unfortunate Monday morning

Imagine working as a logger getting paid a weekly salary of $1,000.   Then one chilly Monday morning you’re still a little tired and accidentally swing the chainsaw and severe an arm off.   Talk about the Monday blues!   Well, you’re going to be out of commission for a while.   Instead of going without a paycheck for many months to come, you can take out your disability insurance instead.   I think you get the picture.

 

Disability insurance maintains your current lifestyle

We all take out insurance to protect our assets.   We take our car insurance to protect our cars from having to pay for expensive damage.  We take out renter’s insurance to protect our belongings from theft.  We take out life insurance to protect our family from the expenses of a sudden death.   We also take out medical insurance to protect ourselves against hospital expenses.   But do we protect ourselves from loss of income?

We all enjoy a certain lifestyle.   Some of us like to eat out on occasion.   Some of us have hobbies.   Some of us even enjoy working out every day!   All of these cost money and we pay for them with our day job paychecks without even thinking about it.   Taking out disability insurance protects our loss of income and will ease the burden of losing your day job income.   Furthermore, it ensures that we can keep living the lifestyle we’ve chosen.   There’s really no way around it, disability insurance is that big of a deal.

Two forms of disability insurance

The first form of disability insurance is something called an employer sponsored policy.❠  This type of policy is something that is typically brokered through your employer.   These policies are significantly discounted due to so many employees being part of the same plan.   On average these group policies cover up to 60% of your day job income.

One caveat though, since these plans are for groups of employees, you may lose the privilege if you change employers.   This will depend on the fine print.   Some companies offer plans where your disability insurance plan travels with you from employer to employer, this is what I have and it’s very sweet!

The second form of disability insurance is private disability insurance plans.   This type of plan is for people who work for small scale employers who may not offer disability insurance group plans.   This is also the option you’d have to go with if you were a freelancer or self-employed.   These policies are also much more comprehensive so they are typically significantly more expensive than group plans.   At the end of the day, either are good options as long as you have some sort of disability insurance to protect potential loss of income.

 

Short-Term vs. Long Term Disability

Short-term disability is what your employer calls sick time.❠  This can range anywhere from a couple days to a couple weeks.   Other factors like your length of employment also play into this.   For example, I get four weeks of PTO at the company I work for.   This can be used for sick leave or vacation.

But what happens when all of your short-term disability runs out?   This is where your disability insurance kicks in.   Although there is no law that requires employers to provide long term disability insurance, almost half of major companies do offer it.

Do your due diligence and research to see if there is any overlap between short-term disability insurance and long term disability insurance.   You wouldn’t want to be paying extra premiums for nothing.   I’m sure the insurance companies won’t mind though!

 

Will social security cover me?

Haha, now that’s a joke!   Like anything government related it’s going to be hard to qualify for.   In the off chance that you do, you will be disappointed in the amount of insurance benefits you do receive. I recommend that you ignore any social security disability benefits and treat it like you do for retirement, a nice little bonus!

 

Disability definitions you need to know

Insurance companies enjoy separating out benefit packages.   So, it’s no surprise that they have three definitions for disability insurance benefits and how you qualify for them.   Check them out:

-Own-occupation: This is the most basic and covers the most.   In simple terms, it means that you are no longer able to perform your work duties therefore you are eligible for benefits.

-Income replacement: This definition of a policy says that you cannot be working at your original job or be working for another employer while you are receiving benefits.

-Gainful occupation: This means that you have the inability to carry on your typical work duties not only for the job you can’t perform anymore but also any job related to your educational background.  This is a very stringent definition.   You’d have to prove you can’t work in any job pretty much.   Good luck with that.

 

When long term disability insurance is not for you

Sometimes, long term disability insurance just isn’t for you.   Your personal situation might actually be better off without taking out disability insurance.   A great example is if you’re married and both of you work.   If you can survive on just one income, there is no point to disability insurance.   It just doesn’t make sense and you’re throwing money down the drain pretty much.   There are other situations like this but I won’t go into them now.   Use common sense and you will make the best decision for you and your family.

 

Will you be buying disability insurance now?

Hopefully after reading this article you are starting to ask yourself that.   Everyone will have a different answer.   But for me, I’m glad I bought it.   Not being married, if I lost my one income, I wouldn’t be making it especially with the high cost of living in California!

So, what about you, will you be buying disability insurance?   Comment below if you currently have it or plan on buying it.   I’m looking forward to hearing varied opinions on this topic!

Is Travel Insurance Worth It?

is travel insurance worth itTravel insurance can help put vacationers at ease for all those unexpected let’s-hope-they-don’t-happen-but-just-in-case moments. However, the biggest issue with travel insurance has been the fine print. Travel insurance companies cover a variety of different emergencies or last-minute cancellations, but it’s important to check each policy to see what exactly and specifically is covered. There is a wide variety of coverage when it comes to travel insurance.

From medical emergencies to forced-to-work cancellations, a variance in policy coverage can range from $40 to several hundred dollars.

Why would anyone add to the cost of an already-expensive vacation by purchasing travel insurance? That’s what I always thought until last December, when we had to cancel our airfare due to my husband’s job. We ended up having to spend an additional $150 each to change flights, when our original airfare had only cost us $230 a piece.

It probably would have been a better bet to splurge for the $50 travel insurance. Lesson learned.

Now that we plan on booking a vacation this summer, and my husband’s schedule is still erratic, I often wonder: is travel insurance worth it?

Travel insurance can be purchased for a variety of reasons: medical, weather, work interruption. But the cost of travel insurance varies most depending on the reason for the coverage. The most important part is to make sure your policy covers the reason you’re purchasing travel insurance in the first place.

The hardest task I’ve found in searching for travel insurance is to be covered for any reason. Our situation is unique in that my husband is actively seeking employment as a firefighter. An interview could come up at any moment, and it’s not like we can just say, Oh can you reschedule for when we come back from our vacation? Thanks!❠It is extremely hard to get an interview; there’s no way he could turn it down. And usually these interviews are only booked a couple of weeks in advance, making planning a vacation a nightmare.

The cost of your travel insurance will largely depend on the cost of your overall trip. It will cost more to insure an international $5000 trip than it will to ensure a continental $1500 trip. It will also cost more to get travel insurance with an any-cancellation-reason as opposed to say a medical emergency or weather coverage.

Some great sites to check travel insurance quotes are insuremytrip.com, and quotewright.com. It’s easy to look at several plans at once and compare the cost as well as the benefits.

In most cases, travel insurance isn’t worth it unless you have a specific reason to purchase travel insurance. For example, you may have gotten a great deal on a cruise to the Carribean but it’s during hurricane season.  Or you may be going on an adventure vacation with plenty of chances to need medical coverage abroad. In all the years I’ve traveled, I’ve had to cancel travel plans three timesâ”and in most of those cases, I simply ate the cost of the airfare. One time I was deathly sick, another time some other plans came up, and this last time, my husband got a job that required him to start on the day we were supposed to leave on our trip.

Obviously, the best case scenario to save on travel insurance would be to not have to purchase it in the first place. But in the grand scheme of things, what’s an extra $100 to add to the price of a vacation that will help bring you peace of mind throughout your trip?

photo by uggboy

Making Term Life Insurance a Worthwhile Investment

life insuranceHave you ever thought about the fact that the cash or term-value insurance you bought to protect your family could also cushion your retirement? It is quite possible, especially today when you have several insurance companies ready to accept you as one of their valued customers.

Imagine this: you’re 55, 60, or even 62. The kids are already  dependent  and are somewhere settled down, the mortgage is almost paid off, and before long, you’ll retire and get your pension. What about life insurance? You’re 62, but considering your good health, you can still expect to live another 18-20 years. This is the point when you might think that your house is worth a million dollars. If you drop your insurance policy, you will save hundreds or even thousands of dollars a year!

Nice try, but that’s not the good choice. After the collapse of real estate and crash of stock market, the financial lives of pre-retirees have already become a lot more challenging. You’ll find it hard to borrow against home equity. You’ll find your mortgage payments become more of a burden. And in the midst of all this you’ll see your retirement accounts shrink a bit leaving you with a temptation to continue doing your job and contribute until you get to an age where you can claim your full Social Security Benefit…

The dilemma you’ll be facing is that if you have term life insurance policy that will expire soon, you’ll be confused about whether you should renew it and allow premiums to soar a bit, or drop the coverage and put your family in a financial bind in case you die prematurely. What it means is that if you have cash-value or permanent life insurance, you have several decisions to make. You may be tempted to withdraw money to deal with a tighter budget or a smaller pension, especially if you’re employer forces you to take an early retirement.

Yes, there are many things to consider, but you need to take right steps to ensure that your life insurance policy offers maximum benefits. First of all, make sure you conduct your research before opting for a life insurance policy. If you have a multi-year term policy and extend it without conducting your research, you could be missing several good opportunities to renew it for less than you think; it will help you to keep hold of death benefits (tax-free) that will also compensate for the damage to your pension and retirement funds.

Read more about life insurance terminology here.

photo by dhilowitz

Genworth Financial Review

genworth financial reviewInsurance has been on my mind recently and I happened to be approached by a mega corporation to do a review.  The corporation is a fortune 500 company called Genworth Financial.  Talk about good timing huh?

Anyways, before I get into what Genworth Financial is all about, I’d like to provide you with some background as well as historical information.

-The Genworth Financial nam can be traced all the way back to 1871 when the first insurance policy was written.

-They have over $100 billion in assets and employ over 6,000 people across the world.

-Three segments make up Genworth Financial: Retirement and Protection, US Mortgage Insurance and International.

-Genworth Financial provides everything from long term life insurance to wealth management to mortgage insurance.

 

Basically, Genworth Financial is one of the “big boys” that will always be around like an IBM.  Let’s dig into what they offer and what I think about them as a whole:

How do their benefits stack up?

Genworth Financial does not cut corners.  From everything that I have read and researched, they are air tight and don’t try to trick you.  They offer a wide range of policies and are broken out into term and universal plans.  Their term life premiums are also very flexible, providing you with the option to make partial payments if you need it.  Premiums are some of the lowest in the industry and are available in 10, 15, 20, and 30 year time periods.  They also offer completely free financial advisers to answer all your questions.  Not only that but Genworth has gone the extra mile and provided education courses and worksheets to help you better understand your insurance policy!

 

Do they care about their customers?

It’s always surprising to hear about an insurance company that actually cares about customer service.  Most companies that I’ve called have given me computers, not real people.  With Genworth Financial, that’s not the case.  I personally called them and I got a real human pretty fast.  I asked a couple random questions and all the information I needed was given to me in a very professional and effective manner.

 

What else do they provide?

Although Genworth Financial does not provide the variety that some other companies do, they make up for it in their dedication to excellent with their insurance products.  I especially love how they combine life insurance and long term health care benefits.  With today’s ever increasing health care costs, Genworth may be a good pick.

 

In closing…

In terms of life insurance, I would rank Genworth Financial in the top tier.  They know what they’re doing and have had very few complains against them.  You can’t go wrong with these guys.  In fact, I will be considering them for my own life  insurance  policy.

Renter’s Insurance Basics

renter's insuranceMany people are forced to rent an apartment until they are in a position to purchase a home of their own.   Since the property doesn’t belong to them, there’s nothing to worry about.   After all, the landlord is responsible for everything, right?   Wrong!   This is when renter’s insurance comes in handy.   But what is renter’s insurance and is it worth it?   Actually, it is.

When you rent an apartment, the owner of the building is required to carry insurance on the structure only- not it’s contents.   That means your contents.   In order for your possessions to be protected, you have to make the necessary arrangements.

Renter’s insurance is designed to cover the contents of a dwelling that you are temporarily residing in.   This goes for all of your belongings, no matter what they are and how much they are worth.   The right coverage insures the owner against everything from fire and smoke, theft, hurricanes, tornadoes, and so on.   Like homeowner policies, there is even additional coverage that a renter can get that protects them against very specific disasters such as flooding or earthquakes.

Another way that a renter’s policy covers you is through liability coverage.   This type of coverage protects you in the event that someone else is injured while they are in your residence, even if you are found to be negligent.

Even if your apartment becomes unlivable for whatever the reason and you have to be displaced, renter’s insurance can help there, too.   Depending on your level of coverage, it can help cover the cost to move and get set up in a new environment.

Another way that renter’s insurance resembles homeowner’s insurance is in the way that they reimburse you.   There are two types of reimbursement possible for your belongings: replacement and cash value.

Replacement is the more expensive of the two coverages since it actually pays you what it would cost to replace your belongings with new ones- regardless of their age.   Cash value pays you what your items are currently worth, taking into account age and depreciation.   The type of coverage depends on your possessions, their age and their value.

Before you purchase a policy it is best to videotape everything that you own, including furniture, to give you an idea of everything that you have. This will also be an invaluable tool to use as evidence in the unfortunate event that you should have to file a claim.

Now, the question that all renters want to know: is renter’s insurance worth it?   Yes, it is.   Given the amount of protection that you receive, renter’s insurance is quite reasonable, even if you have significant possessions.

In order to justify it’s expense, take a look at all of your possessions and what it would cost to replace them.   Now, take the annual cost of renter’s insurance and divide it into that total cost.   This will give you the number of years that you would have to carry renter’s insurance in order to break even.

photo by MadMarlin