Many people who rent may assume their personal losses will be covered by a landlord's insurance should their rental property fall victim to a fire, theft, explosion, or other disaster. Renters are often dismayed to learn that landlords insure only their own structures, not the belongings of their tenants.

As a result, renters without insurance may be carrying much more risk than they think. In addition to their personal possessions being at risk, their financial security could also be jeopardized in the event of a lawsuit.

Renters insurance typically covers loss or damage due to theft, vandalism, smoke, fire, explosion, windstorm, lightning, and faulty indoor plumbing. Categories of coverage usually include the following:

• Personal Property. Such property consists of your clothing, jewelry, furniture, electronic equipment, appliances, bicycles, and any other items you bring into the apartment. Be aware that most policies have a coverage limit on particular items (e.g., jewelry or computers), and at an additional cost, further coverage may be available. Personal property coverage also protects your belongings when they are away from the apartment. For example, if your dry cleaning were stolen from your car or your luggage stolen at an airport, you would be covered. It is important to note that there is a 10% limitation on this off-premises coverage if the loss occurs at another residence such as a summer house.
  

• Improvements. If you added paneling or wallpaper to a rented house or apartment that was subsequently damaged in a fire, your policy could cover that damage.

• Loss of Use. If damage to the building in which you rent renders it unfit for living, your policy could pay for temporary housing, and may also cover such items as food and laundry costs.
  

In addition to covering damage to your property, renters insurance provides liability coverage for personal injuries and property damage that results from your negligence. For example, if someone slips on your wet kitchen floor and sues you for damages, the liability portion of your policy may cover potential damages.

Although individual policies can differ, a basic policy (say, with a $250 deductible) might cover $15,000 worth of personal items, $100,000 per occurrence for legal liability, and $1,000 for medical expenses without fault. Coverage limits can be expanded to suit your particular needs.

Standard policies generally cover property loss in excess of deductibles on a "cash value" basis, which is the cost less depreciation. For a higher premium, you could obtain "replacement cost" coverage, which pays the full cost (minus the deductible) of replacement.

If you are renting, it is important not to undervalue your personal belongings or underestimate your potential liability exposure. Comparing the risk of being uninsured to the relatively modest premiums of most renters policies may prove renters insurance to be a valuable bargain. To ensure you are properly covered, give us a call today.

The possibility of sustaining a long-term disability from an accident or illness is something most of us would rather not contemplate. However, you can protect yourself and your family should you lose your ability to earn an income with disability income insurance.

Do I Really Need Disability Income Insurance?

For most, Social Security cannot be solely relied on to replace lost wages, because one must be severely disabled to qualify for disability benefits. Even then, it is necessary to wait at least six months for payments to begin. Also, Social Security payments may not sustain you and your family at your current standard of living.

You may be able to "get by" for a few months on your savings, but if the disability is prolonged, you may exhaust most—or all—of your savings. You may miss mortgage, car, and other credit payments, and cause damage to your credit rating. Utility bills, tuition, grocery bills, and business/professional expenses will also continue despite disability and loss of income.

Types of Coverage Available

Depending on your income, the maximum coverage you can buy will typically replace 45% to 75% of your pre-disability earnings. The cost of the coverage will depend on such factors as the risk level of your occupation, your age, your health history, and the scope of coverage. Individual disability income insurance is by application and is subject to underwriting approval.

It should also be noted that when you pay the premiums (vs. an employer-provided policy), the income from personal disability income policies is tax free. If your employer has a salary continuance plan, you should know the dollar amounts of coverage, the waiting period, and the length of payments, so you can coordinate your personal coverage with your employer-provided benefits.

When examining the contract provisions outlined in a potential disability income insurance policy, consider these items:

• Definition of total disability—Definitions can include coverage in the event that you cannot perform the duties of your own occupation, or the duties of any occupation. The "own occupation" definition offers better protection, particularly if you are a highly skilled professional.
  

• A noncancelable clause—The insurance company cannot cancel or change your policy or increase premiums before you reach age 65.
  

• Residual disability payments—The policy will pay benefits in proportion to your loss of earnings if you return to work at a less demanding job for a fraction of your former salary.
  

• Future insurability—This benefit allows the purchase of future coverage without regard to medical insurability.
  

• Benefits payable until age 65 or for life.
  

• A reasonable waiting period—Waiting periods in disability income insurance policies vary. Typical waiting periods are 90 or 180 days. Shorter waiting periods are more expensive than longer waiting periods. Consider your liquidity, sick pay, and any money owed to you, so you can decide how long a waiting period you could reasonably afford.
  

It is important to note that there may be an additional premium charged for adding any of the above riders to a disability income insurance policy.

Just as your health needs an annual checkup, so does your insurance program. Although you may be unaware of it, your financial profile has probably changed over the past year. Therefore, you may need to adjust your insurance coverage. Please take the time to complete this checklist and mail it back to us in the enclosed envelope. Or, if you prefer to discuss your insurance needs in person, please call to schedule an appointment.

Name_____________________________________________

Address___________________________________________

City_________________ State_____________ Zip_________

Phone_________________ Email_______________________

Check yes or no. If yes, on a separate piece of paper, please provide a brief description or explanation.

Yes No 1. Do you have collectibles such as antiques, fine art, stamps, coins, or baseball cards?

Yes No 2. Do you own valuable jewelry or furs?

Yes No 3. Do you own costly sporting equipment or firearms?

Yes No 4. Do you have expensive cameras or other photography equipment?

Yes No 5. Do you have any alarms installed in your home? If so, what types and are they monitored?

Yes No 6. Do you keep more than $200 cash in your home?

Yes No 7. Are your personal belongings insured for their full replacement value?

Yes No 8. Do you have children away at college?

Yes No 8a. If so, are their possessions insured?

Yes No 9. Do you own tools, equipment, or instruments used in your trade or profession?

Yes No 10. Do you operate an office or studio in your home?

Yes No 11. Do clients come into your home to make purchases/conduct business?

Yes No 12. If you have a basement, are you concerned with water backup through sewers or drains?

Yes No 13. Do you or your resident children babysit for a fee?

Yes No 14. Do you have a dog, cat, or other animal?

Yes No 15. Have you recently remodeled or redecorated your home?

Yes No 15a. Do you have plans to do so?

Yes No 16. If your home suffered a total loss, would your insurance cover your home's full replacement value?

Yes No 17. Are you interested in flood insurance for your home and personal property?

Yes No 18. Are you interested in earthquake coverage?

Yes No 19. Do you use a wood, coal, or pellet-burning stove?

Yes No 20. Do you have a swimming pool?

Yes No 21. Do you own rental or investment property?

Yes No 22. Do you own a vacation residence (e.g., condo, cabin, or trailer)?

Yes No 23. If you rent, do you carry renters insurance?

Yes No 24. If you own a condo, do you have condo insurance?

Yes No 25. Do you plan to purchase a new vehicle this year?

Yes No 25a. If so, would you like us to provide you with an insurance estimate on the vehicle(s) you are considering? Write year, make, model, and type of vehicle(s):

Yes No 26. Does our agency insure all your vehicles?

Yes No 27. Does your automobile policy list the names of all drivers living in your household?

Yes No 28. Do you routinely drive vehicles you do not own?

Yes No 29. Do you have CD players, cassette decks, or other non-factory installed equipment (like car phones, stereos, etc.) in your car?

Yes No 29a. If so, would you like a quote on insuring those items?

Yes No 30. Do you own a vehicle with custom furnishings or equipment (e.g., a conversion van)?

Yes No 31. If your vehicle were damaged in an accident, would you need your current automobile policy to reimburse you for a rental car while yours is being repaired?

Yes No 32. Do you own any of the following recreational vehicles?

Boat Camper All-Terrain Vehicle Motor Home Golf Cart

Snowmobile Motorcycle Moped Others____________

Yes No 33. Do you carry at least a $1,000,000 umbrella liability policy?

Yes No 34. Do you own a business?

Yes No 34a. If so, do we currently insure it?

Yes No 35. Do you plan to start a business?

Yes No 36. Would you like a no-obligation review of your life insurance needs for your business (e.g., key person life insurance)?

Yes No 37. Do you have adequate professional liability or malpractice coverage?

Yes No 38. Do you and your family have proper health insurance coverage?

Yes No 39. Do you have disability income insurance?

Yes No 39a. Do other family members need such coverage?

Yes No 40. Do you have life insurance that would pay your mortgage in the event of your death?

Yes No 41. Would you like a no-obligation review of your personal life insurance needs?

Yes No 42. Do you have long-term care coverage to protect your savings from expensive nursing home costs?

Yes No 43. Do you know anyone else who might benefit from a no-obligation insurance review from our agency?

Yes No 44. To serve you better, do we have your correct mailing address?

Updated Personal Information: ____________________________________

____________________________________________________________

____________________________________________________________

Please sign and date this form and return it to us in the enclosed envelope.

Signature___________________________________ Date__________

Please call or stop by if you have any questions or concerns. We are happy to serve your needs, and appreciate your time and valuable input. Thank you!