Calculate the coverage you need on the house itself. Homeowners insurance pays what it will cost to rebuild your house. You can arrive at this amount by multiplying your home’s square footage by the building cost per square foot for homes in your local area. Get this number from realtors, local homebuilders’ associations, and insurance agents. Be sure to check on the building cost number each year, as it can change, leaving you with inadequate coverage. Some insurance agents have software that will help you estimate your coverage needs.

Make sure your home’s contents are adequately covered. Check your policy to see if you have “full replacement value” coverage for your home’s contents. If you don’t, the insurance company can give you a pro-rated value for these items — a reduced amount that accounts for age and wear. In any case, valuable items such as jewelry, art, and antiques should be insured for their actual replacement value on a separate rider. You pay more for this coverage, but you will get full value for the item in case of a covered loss.

Take photos and videos of your home and contents. Cover every nook and cranny and put the pictures and videos in a safe deposit box. You might also save them online. Then if you have a loss, you have proof of the quality and condition of your home and its contents before the disaster.

Ask about premium discounts. There are many ways insurers discount their annual premiums. Higher deductibles or a good credit rating can earn you discounts. Purchasing your auto insurance from the same company may reduce premiums. Discounts can also come from: smoke detectors, sprinkler systems, fire extinguishers, being over 55 or a longtime policy holder, security alarms connected to an outside service, or hurricane shutters. But don’t let price be your only concern. First and foremost, make sure you’re dealing with one of the reputable, reliable insurers operating in your area.

Indianapolis, IN, June 30, 2010: The Indiana Department of Insurance wants to remind Indiana Consumers to be wary of contractors who may look to take advantage of them during the difficult times following storm damage to their homes or businesses.

The Department suspects some contractors may make promises of greater claim payments from insurance companies if the consumers agree to sign a contract with them. These contractors would violate state law by promising to negotiate claim settlements on behalf of consumers. In order for a third party to negotiate a settlement, they must be licensed by the Department as a public adjuster. These public adjusters charge a fee, either as a flat rate or as a percentage of the settlement amount, to negotiate with the insurance company on behalf of consumers.

If a contractor makes any promises regarding negotiating with an insurance company, the Department encourages consumers to ask for their public adjuster’s license number. Alternatively, consumers can contact the Indiana Department of Insurance at 800-622-4461 to verify whether or not the contractor is licensed as a public adjuster.

Consumers should also be aware that hiring a public adjuster does not guarantee a greater payment amount on a claim. In fact, the public adjuster still gets paid, by the consumer, regardless of whether or not he or she is able to secure a greater claim settlement. This can possibly mean less money for the insured. Consumers should understand and consider what it is they are paying for before entering into any contract with a licensed public adjuster.

A few other helpful tips:
• Always read all documents provided by a contractor before signing any contract.
• Do not give a contractor power of attorney.
• Do not allow a contractor to inspect your property when you are not present.
• Do not pay a contractor in full until all work has been completed.
• Pay contractors by check or credit card (not in cash) so there is a record of the transaction.
• Beware of contractors who use high pressure sales tactics.

1.Most feel what’s the chance something could happen? Unfortunately the chances are pretty good.

The dept of justice claims that renters are 50% more likely to be the victim of a break in robbery than a homeowner.

2. Doesn’t the landlord have insurance? Most landlords have insurance on their property, not yours.

Your personal property is not covered by a landlords policy.

3.I’m broke or I’m saving for a home,car or whatever. Most people are surprised at how affordable renters insurance is. About the cost of a pizza in a lot of cases.

We see policies written as low as $10 a month depending on location and coverage.

Many times combining your renters and auto policy will lead to a discount. Almost a buy one get one free in some cases. The savings on your auto policy can be pretty close to the cost of the renters policy.

4. I would guess that most people don’t have a policy because they don’t understand how it works. A renters policy can include personal liability coverage and legal representation.

If your dwelling becomes unlivable do to a covered peril your policy may pay for another place to live.

As with any policy ask questions. Some policies have coverage limits for jewelry or firearms. If you have more than your policy covers you can add an inexpensive rider to cover those possessions.

What do I need to do before I buy?

1. Assess what you have I know that seems overwhelming but you’ll be glad if you have a claim. Some agents have little booklets that are broken down room by room. Also excel has an inventory template. Documentation is even better. Pictures or videos of each room will help in the event of a claim. Model #’s serial #’s and receipts are also helpful.

2. Before you talk to an agent have a list of questions ready to ask.

Do I qualify for any discounts?

Are my legal costs covered?

How about medical expenses?

Do I need to choose replacement or cash value?

Do I need separate coverage for a roommate?

Getting a quote is fairly easy, call your agent or search online.

If you’re in NWI it’s even easier. Multiple quotes are available right here.

Lake County renters insurance quotes

Porter County renters insurance quotes

1.  If I have a claim, will I be able to pay for the deductible?

2.  What is the savings on a higher deductible and how long will it take to recoup the cost if I have a claim.  For example, if going from a $500 deductible to a $1000 deductible saves $100 per year on your insurance, then it would take 5 claim free years to recoup the cost of having to pay a higher deductible.  However, there are other costs to consider when filing a claim…

3.  If you file a claim with your insurance company will they raise your rates (surcharge)?  Or worse, cancel your policy for claim activity?

4.  Excessively filing claims may (and probably will) cause your rates to go up and eventually get your insurance policy cancelled.

You will probably make the best decision on deductibles when you consider that you are buying insurance not a warranty.  Insurance is designed to help you recover/pay for unexpected events/damage and not maintenance issues.  A warranty is more designed for maintenance issues.  It may seem like symantics, but its important to the insurance company and therefore important to you because your policy is a contract between you and your insurance company.  A home requires regular maintenance like fixing leaky faucets, replacing the screen on the screen door, and replacing a worn out roof.  These are not insurance claim items, but maintenance items.  However, if a tree is blown over by the wind and damages the roof, then that is an insurance item.

Finally, considering the above insurance claim situation, should you file the claim.  If a tree falls on your roof and causes $1200 worth of damage.  Assuming you have a $1000 deductible, should you file a claim?  If its a covered loss, the insurance company is obligated by contract (policy) to pay the $200 over the deductible… so should you turn in the claim?  You may want to review items 3 and 4 above.  Yes, the insurance company will pay you the $200, but it may cost you more in the long run if the insurance company surcharges your policy.  Even five “small” claims are still claims and looked at closely by insurance companies.

Covered persons are the named insured, spouse, or any family member when occupying a motor vehicle, or as a pedestrian when struck by a vehicle. Also covered is any individual, other than the named insured and family, while occupying a covered auto. Covered people are protected while entering or leaving an auto.

Typical coverages: $1000, $3000, $5000, $25,000, $50,000 and $100,000.

What does all this mean? Auto liability coverage protects you when you cause bodily injury to someone outside your family or vehicle. Medical payments covers your bodily injury in an accident. For example, if you slide through a stop sign into another car, liability will cover their medical cost up to the limit of coverage. If you slide through the stop sign into a tree and your wife suffers an injury, medical payments will cover her up to the limit of coverage. Medical will also cover passengers in your car (important if you’re the car pool mom) and cover your family in other accidents. Also, if your son is riding with a buddy and gets injured in an accident, your medical will cover your son if the friend’s coverage isn’t enough, up to the limits of your coverage.

It’s surprising how many consumers are unaware of how medical payment coverage can affect them or their family. They are willing to have $300,000 in coverage for someone they don’t know but only have $1000 in coverage for family. Upping coverage from $1000 to $25000 should be a few dollars a month. Next time your getting an auto quote ask what the difference between the coverages is.