Why should you have Renter’s Insurance??

The Novak Agency gives you 3 Important Reasons to have Renters Insurance

Every dollar you take home is important and you do your best to spend them wisely. When purchasing a house, most people borrow from a bank and are required by the lender to buy insurance. However, when you rent, that check and balance isn’t in place to remind you of the risks of being uninsured. In fact, an Insurance Information Institute (III) poll completed in 2014 showed that only 37 percent who rent a house or apartment are insured.

Did you know that if you rent, your landlord’s insurance will only cover the costs for damage to the building and not your personal items? Renters insurance is well worth the investment.  Check out the three ways that renters insurance protects you – the renter.

Coverage for your personal possessions-It doesn’t seem likely that you could ever lose your “stuff”, but it can happen to even the most careful person because well, unexpected things happen. Then what? Well, renters insurance may reimburse you for loss of, or damage to your personal possessions from causes such as fire or lightning, windstorm or hail, explosion, vandalism or malicious mischief, theft, falling objects, weight of ice, snow or sleet, water damage resulting from utilities and electrical surge damage. Some policies even include a limited amount of off premises coverage for when you travel.

Liability protection -If you’re sued because you, your family member or your pet cause someone to suffer bodily injury or incur property damages, a renters insurance policy gives you protection. How? The policy pays for your defense attorney and any damages awarded – up to the limit of your policy. A standard policy typically provides at least $100,000 of liability coverage, with more available for additional premium. Your renters policy also provides compensation to someone who is actually injured while in your rental unit. Most policies allow between $1,000 and $5,000 in coverage.

Additional living expenses- Where would you stay if your property was damaged by fire or storm and you had to move out temporarily? A renters policy may provide you with additional living expenses (ALE) so you can live elsewhere if your rental is damaged or destroyed by a disaster. The ALE pays for meals, hotel bills and normal expenses (laundry, utilities, etc.) you incur while the property is repaired or rebuilt. Make sure you know how much coverage you have and what the limitations are. Some insurance companies provide coverage for a specific amount of time and others have a financial cap.

Protect your personal property and your savings by contacting us to discuss your options for renters insurance today. Ask about discounts you may be eligible for. The benefits far outweigh the cost and you’ll sleep better knowing you’re covered.

Daniel Racine

Novak Agency, Inc.



Novak Agency’s helpful hints

Aftermath of an Auto Accident:

Repair vs. Total Loss

Have you ever been faced with the question of whether your vehicle will be repairable after an auto accident? Understanding how this process works, both from the consumer side as well as the insurance carrier’s side will help you resolve the situation, hopefully creating less stress for you in the process.

In the immediate aftermath of an auto accident, what are the necessary steps to get you back on the road? The first step is obvious. Report the accident to your insurance carrier. After the initial fact-gathering stage is complete, your insurance company will usually send a company adjuster (appraiser) or an independent adjuster out to inspect the vehicle. Depending on the severity of the damage, you may be asked to simply submit an estimate or two for the necessary vehicle repairs. This decision will be made based on a number of factors:

  • How old is your vehicle?
  • How many miles are on your vehicle?
  • What is the pre-accident condition of your vehicle?
  • How severe is the damage?

These questions will help the adjuster determine whether your vehicle may be deemed a total loss. What is a total loss? It’s simply when the repairs to your vehicle will exceed the current value of the vehicle (actual cash value or ACV).

The decision not to repair your vehicle can be more complex and the consumer has a voice in this process as well. Each state has different laws governing how this process is handled. For the purposes of simplicity, I will use general guidelines used by insurance carriers. Keep in mind, your state laws may differ.

So, the claims adjuster will use the answers to the questions noted above to determine whether an inspection is needed. It is important the adjuster is made aware of any improvements to the vehicle which could increase the value – like a new transmission, leather seating, sunroof, etc. Many consumers see these as typical upgrades, but they can greatly affect the value of the vehicle. Be sure to note any trim package on your vehicle along with the correct engine size. Again, these are important factors in pinning down the actual cash value.

After the inspection is complete, the adjuster will review the estimate and photos of your vehicle, along with a report estimating the actual cash value of your vehicle, i.e.NADA, Kelley Blue Book. This information will determine whether your vehicle can be repaired. If unrepairable, the adjuster will call you to discuss the value of your vehicle along with the next steps in the process. Don’t hesitate to ask to review the estimate and appraisal completed on your vehicle.

Keep in mind, a vehicle repair or total loss is always subject to one’s collision/comprehensive deductible and any lienholder has first right of payment in the event of a total loss.

Resolving a physical damage claim on your vehicle can be stressful. Remember to be thorough and ask questions.

-Casey Flood with Society Insurance