TNHA
Tagiugmiullu Nunamiullu Housing Authority
Renters' Insurance
Whether you’ve experienced a fire yourself or know someone who has, the loss can be devastating. Of course, there are some things that can never be replaced, such as photos that haven’t been scanned and saved to an external photo center, but with renters insurance most things can be replaced.
Unlike homeowners insurance which covers the building itself, renters insurance covers your personal belongings in the event of incidents such as theft, smoke, vandalism, fire, explosion, falling objects, building collapse, and rupture of hot water systems.
There are two types of renters' insurance, actual cash value and replacement value. Actual cash value is the amount the item is worth based on how long you’ve had it and its useful life. For example, if you bought a new mattress for $1000 a year ago, you would get about $900 but if you bought it 10 years ago you wouldn’t get much at all. Replacement value policies have a higher premium, but these policies give you the money to replace the item. For example, if you have a sectional sofa that is 7 years old and it would cost $2,000 to replace, the insurance would pay you the full amount.
Be sure to talk to the insurance agent about items such as guns, art, and jewelry. Any items that do not lose value are considered especially susceptible to loss and might need special coverage, known as a rider.
The price you pay for your renters' insurance will be based on several factors, such as the age of the building, number of units, fire protection rating of the area, amount of coverage you need, etc. If you have any other type of coverage, such as car insurance, ask for a multiple policy discount.
Once you have your policy, you might want to set it up to be deducted monthly from your bank account, to avoid loss of coverage for nonpayment. Also, be sure to keep a list of your household items at a friend or relative’s house for safekeeping. The list should include any documentation, such as photographs of valuables, serial numbers, etc that will help the insurance process your claim more quickly.
Homeowners’ Insurance
If you are buying a home, you probably already have homeowners' insurance. If you are lucky enough to have your house paid for, you should still consider it. Think about it, could you really afford to rebuild the house plus replace all of your personal possessions if there was a fire tomorrow?
There are several different levels of homeowners’ insurance plans to choose from: HO-1, HO-2, and HO-3. HO-1 is the silver edition, with basics like theft, fire, and some liability protection (in case someone gets hurt on your property). HO-2 is the gold edition, with additional coverage such as broken pipes and damage from the weight of ice or snow. HO-3 is the platinum edition, with even more coverage except for earthquakes, floods, nuclear accidents, and war.
Want earthquake or flood coverage? Most insurance companies offer a separate policy for earthquakes (there is a wait out period from the time of the last earthquake in your area) and the Federal Emergency Management Agency offers a flood insurance policy.
The cost of a homeowners’ policy will be based on where you live, the value of the building and contents, type of coverage and deductible you select, etc. Some ways you can keep the costs down are: get at least 3 quotes from different insurance carriers (be sure the coverage is the same for each), ask for the highest deductible you can afford, and ask for senior or multiple policy discounts.