They say that the only constant in life is change. And that’s true whether you’re 18, 80 or somewhere in between.
One thing to consider when life changes is your insurance coverage. Here are six common transitions that your Erie Insurance agent can help you navigate.
You’re off to college.
With Erie Insurance, full-time students younger than 24 are automatically covered under their parents’ homeowners policy. Part-time students (or students who are 24 and older) may need to take out a renters insurance policy. If you choose to live in an apartment instead of a dorm, think about purchasing a separate renters insurance policy. (Learn more about renters insurance below.) When it comes to car insurance, you don’t need your own policy if you’re taking a family member’s car to school. If you’re a co-owner on the vehicle or if you own your own car, you probably need your own policy.
You’re renting your first place.
You found the perfect place, but since your landlord’s policy doesn’t typically cover your stuff, you’ll want to look into getting your own renters policy. In addition to protecting your belongings, a renters policy also provides worldwide liability protection for a situation like harming someone while riding your bike. If someone is hurt in your apartment, your policy most likely would pay his or her medical bills. A renters policy will often cover additional living expenses if your apartment is damaged and you can’t stay there because of something like a fire. There are many affordable options—plus, you can qualify for a discount if you purchase both a renters and an auto policy from ERIE. In some cases, the discount can pay for pay for most (or all!) of the renters policy.*
You just got married.
If you’re just starting out, you’ll definitely want to look into life insurance. Life insurance can be the most affordable way to help ensure that you or your new spouse is able to carry on if the unthinkable were to happen. Also remember to ask about your auto insurance. You could qualify for discounts, including a multi-car discount if both cars are insured by ERIE. Finally, you may need extra coverage on an engagement or wedding ring. With an Erie Insurance homeowners or renters policy, your coverage for lost or stolen jewelry is capped at $3,000. So if your ring is worth more, you’ll want to consider separate coverage.
You welcomed a bundle of joy.
You may have binkies, diapers and formula on your mind, but another thing to consider is life insurance protection for your family. Everyone needs financial protection—even a stay-at-home parent. With life insurance, you can provide for your loved ones even if…well, you’re not there.
You retired and are renting a place somewhere warm for the winter.
No penalty for sand between the toes! If you’re going south, an extra policy is not needed in the majority of cases. That said, a lot depends on the policy you already have, how long you’ll be gone and what kinds of things you’ll be taking to your temporary home. For these reasons, it’s a good idea to check in with your agent before you head south.
You or a loved one is entering an assisted living facility.
When it’s time for help with care, it’s a good idea to consider a renters policy if you or a loved one is entering an assisted living facility. A renters policy covers belongings—and, more important, personal liability. For instance, renters insurance could cover your loved one if he or she was responsible for injuring someone.
Many people can’t afford to pay big medical bills out of pocket, so definitely contact your Boizelle Insurance before making the move. Life may change, but one thing that doesn’t is being able to rely on us. You can always turn to us when it comes to making sure you’re protected at every stage of life.
*Individual policies may differ.
Originally by: Amanda Prischak, Erie InsuranceRead more
Figure out how much your stuff is worth.
“There is value to everything when it comes to renters insurance,” says Terry McConnell, vice president, Personal Lines Underwriting, at ERIE. “Most people underestimate the value of their contents, but once they itemize them, they realize there’s a dramatic difference from what they initially thought.”
To get a clear idea of your belongings’ worth, check out ERIE’s Home Inventory Record.
Decide between actual cash value and replacement cost.
Actual cash value takes depreciation into account when calculating the worth of your belongings. So if you bought a brand new laptop for $1,000 five years ago, you’ll only be reimbursed for what the laptop is worth in today’s dollars minus depreciation.
Replacement cost is a better option: It reimburses you for the original value of the item (or one of similar kind and quality at today’s replacement cost if the item is no longer available) and costs only slightly more than actual cash value.
Consider earthquakes and other disasters.
Boizelle Insurance can tell you more about adding these extra coverages to your renters insurance policy.
Choose a deductible.
Think about how much premium savings you’d want from picking a higher deductible and how much you could afford to pay out of pocket should you experience a loss.
Think about extra protection for any valuables.
ERIE offers $3,000 worth of coverage for any one item that’s stolen. If you own pricey items like jewelry, furs or silverware, you’ll probably want to add an endorsement to your renters insurance policy to make sure they’re fully covered.
Pick a liability limit
“Think about all the ways you could accidentally hurt someone,” says McConnell, “and you’ll see there are many.” If your dog bites another animal or person, you’ll be held responsible, for example. That kind of lawsuit can get pretty costly if the injured person has any long-lasting physical scars or impairments. (If you’re concerned about having enough liability protection, consider an umbrella policy that offers an extra $1 to $5 million in coverage.)
Finally, remember that no matter where or what you’re renting, Boizelle Insurance is always there to help you get the right coverage at the right price.
By: Ashley Weber, Erie InsuranceRead more