coveringyourassets

Helping you protect what you've worked so hard to obtain.

5 Myths About Phoenix Renters Insurance

According to a recent study, two-thirds of all Phoenix apartment and condo renters do not carry renters insurance – which is surprising when you consider that renters are 50% more likely to be victims of burglary than homeowners according to the Bureau of Justice Statistics.

I began asking people I knew in the Phoenix area and surrounding Valley cities if they carried it and if they didn’t, why not.  Here are the predominant answers I received:

  1. It’s Too Expensive.  According to the National Association of Insurance Commissioners, the average renters policy only costs $169 per year.   That’s a lot cheaper than paying to replace all of your things at one time.  When I tell people that the average policy I sell in my office in Phoenix is about $75 down and under $20 per month, they can’t believe it.  This is a little higher than the NAIC statistic listed above, but I always offer “replacement cost” policies rather than “actual cash value” (or depreciated value) policies – and these cost a little bit more.  But, I think they’re worth it to my clients and they always know they’ll be able to replace their items at the current value – not pennies on the dollar with a depreciated-value policy.
  2. I’m Covered Under My Landlord’s Policy.  This is a common misconception.  Yes, your landlord carries insurance on the property.  But, that only covers what they own – which is the actual property.  They also most likely have coverage for liability that would be their responsibility – such as someone tripping over an uneven walkway or something like that.  However, their policy will not cover your belongings, nor will it cover any liability that would be yours – such as someone tripping over a cord in your living room and breaking their arm.
  3. I Don’t Need Liability Coverage.  Again, as stated in the previous myth, you actually do need it.  If someone gets hurt while visiting you and it’s not something that’s clearly caused by a defect to the property, then you’re responsible.  This could range from a dog bite to someone tripping.
  4. I Don’t Own Enough Stuff to Warrant Paying for Coverage.  You’d be surprised how much all your stuff would cost to replace if you lost everything.  We offer a free home inventory worksheet in pdf format.  Print it out and do a thorough inventory of all your belongings.  You’ll be surprised how much it would cost to replace everything.  It would certainly be much more than the cost of a rental insurance policy.
  5. I Live in a Great New Complex and I’m Not Worried About Security.  While that may be true, many people don’t know that their renter’s insurance policy will cover their items when they’re not at home.  For instance, if your camera is stolen while you’re on vacation, your policy will likely cover it.  Also, if someone breaks into your car and steals your new briefcase or a laptop you locked in the car, it’s going to be your renters insurance policy that would likely cover it – not your auto insurance policy.

Being in the insurance business, people tell me stories all the time about how insurance affected their lives.  I’ve had numerous people tell me about making small claims on their homeowners or renters policies for things that were stolen while on vacation.  But, I’ve also had a few people tell me about more serious incidents – like fire – where they were so grateful they had taken the time to purchase renter’s insurance.  Going through the trauma of losing everything was bad, but knowing they had coverage to replace their belongings made the sting less painful.

If you’ve never done a home inventory before, take a few minutes to download our free Home Inventory Worksheet to see exactly what it would cost you to replace everything in your home.  You’ll be surprised at the total.

As always, until next time …

Tavisha, Go Time Insurance

(602) 938-1515

 

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The Emotional Impact of a Home Burglary

Our home was burglarized last week and I’m having a wide range of emotional reactions to it.  The most prevalent one seems to be distrust.  I look at everyone in my neighborhood now with distrust – wondering if any of them were involved.  I don’t like that feeling, as I’m pretty friendly with the neighbors and I don’t want that to change.

I also feel scared when I go home and initially enter the house.  I wonder if someone’s in there and what would happen if I walked in on another burglary.  I’m not normally a fearful person, so I don’t like this new development at all.

Once the feelings of powerlessness leave, then the waves of anger come in.  Part of me wants to be like a big-city TV detective and start shaking down people until somebody talks.  There’s a hidden thug inside me who wants answers and wants them now!

Once the anger subsides, I find myself just being grateful that no one was hurt.  It could have been so much worse.

Having insurance is, obviously, important and gives you a sense of peace in these types of situations.  But, it certainly doesn’t solve the emotional issues that accompany such a violation.  I guess like most painful things we experience in life — it will take time for things to get back to normal again.

Until next time …

Tavisha, Go Time Insurance

 

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