A Renters Insurance Policy is an inexpensive way to protect your personal belongings and your personal liability. Your belongings are protected against fire and theft, and they are covered anywhere in the world.

Say you went out to dinner and left your expensive leather jacket in the car. When you got back from dinner you discovered that someone had broken into your car and stolen your leather jacket. Not to worry. You are covered, minus your deductible. It is advisable to carry a small deductible because the differences in premium for the different deductible options are generally small, and small losses would be covered.

So how much coverage should you purchase? Everybody is different so coverage varies person to person. The big question is how much is all your “stuff” worth? You don’t want to overinsure, but you shouldn’t underinsure either. First look at your big ticket items: your furniture – the bedroom set, the dining room and the living room. Home entertainment may be another expensive item: your tv, your stereo, your vcr, your dvd player. How much did all your dvds cost? Your cds? Your tapes? Your records? (Come on, I still have mine!) Your computer – hardware and software? Cameras? Sports equipment – golf clubs, skis, bicycles, firearms. And don’t forget your clothes. If your apartment burns down, you will be starting from scratch. Do you have lots of expensive suits, or are you a casual jeans person? Don’t sell yourself short – a pair of Levis is not cheap! And don’t forget your underwear. Are your drawers full of Victoria’s Secret items, or do you just get the department store stuff?

The more documentation you have in the case of a loss the better. The insurance company is not going to nickel and dime you, but they are not going to give you carte blanche either. You really should have some kind of inventory list. Model names and serial numbers are especially helpful. Pictures and video tapes help as well. Tape an entire room focusing on individual items. Duplicate your lists or tapes and store them in a separate location – your safety deposit box, your friend or relative across town. I suggest you look into a replacement cost endorsement. For a modest extra premium, in the case of a loss, your items won’t be depreciated – they will be replaced at today’s cost.

Another benefit of having a renters policy is that it may make your car insurance cheaper. Many insurance companies will give you a discount if you have multiple types of insurance policies with them. Many landlords also require their tenants to have a renters liability policy.

In summation, a Renters Insurance Policy provides coverage for your personal belongings anywhere in the world. It gives you personal liability coverage and it may make your other insurance less expensive. Consult your insurance agent about how much coverage you need.

Years ago, people would only use their Homeowners Insurance in the event of a catastrophic loss: their house burned down, or burglars stole all their belongings. It was a common rule of thumb that homeowners would use their insurance on the average, two point something times during their lifetime. If someone backed into the side of the garage on the way to work, they would take care of it and not submit a claim. Because of that, insurance companies did not penalize homeowners for using their insurance.Nowadays that mindset is changing. Many people feel that since they are paying for the insurance, if the occasion arises, they are going to submit a claim. If they are only going to get five dollars after the deductible, they are still going to make the claim. The insurance companies are tracking these losses. Now they are starting to increase the cost of insurance for those people that are making numerous claims, and they are even nonrenewing policies for homeowners who have multiple claims. The insurance companies feel that homeowners should not be using their insurance for home maintenance.

Insurance companies are also phasing out lower deductibles. Some companies no longer have a $100 deductible or $250 deductible. The $500 deductible could be next. Insurance companies are now adding a 1% or 2% deductible – 1% or 2% of the dwelling amount – the amount you are insuring your house for. If you insure your home for $500,000, a one percent deductible would be five thousand dollars. A two percent deductible on that same house would be ten thousand dollars! You can see that the insurance companies are trying to do away with small claims.

That is not necessarily a bad thing. Some insurance companies will charge for a deductible lower than the standard deductible. On the other hand, they will discount for a deductible higher than the standard deductible. In this age of rising costs, taking a higher deductible might make good sense. I strongly urge you to discuss the deductible options your insurance company has available with your insurance agent.

So what does this have to do with Home Maintenance? If you come home from work some night and discover your house filled with smoke, you may have suffered a “puff back”. Your clogged furnace exhaust just filled your house with oily smoke instead of going up the chimney. Now you have to have your walls and furniture cleaned. Maybe your clothes have been smoke damaged. You probably could have prevented this disaster by having your furnace cleaned and serviced.

Maintaining your home could prevent a number of costly claims. Have your furnace cleaned and serviced. Replace worn shingles on your roof. Replace the hoses on your washing machine. You may prevent claims, avoid large out of pocket expenses, and afford a higher deductible which could in turn lower the cost of your homeowners insurance.

The comprehensive coverage in your automobile insurance policy will cover it. You will be required to pay your deductible, but the insurance will pay the remainder. Contact your insurance agent to make a claim and he will guide you through the process. Many insurance companies have a procedure in place with a number of glass shops where the shop will only charge the customer the deductible. They bill the insurance company for the rest. The insurance will reimburse you for the amount over the deductible if you have paid in full.

Many glass shops are now mobile and they will come to you. They can do the job at your home or they may even do it at your workplace. Of course you normally would be able to drop your vehicle off at the glass shop. But who do you choose to do the job?Many of the glass shops in your area can do it both efficiently and professionally. Ask your insurance agent for guidance. Maybe you’ve had to have your windshield replaced before. Were you satisfied with the work? Who have your friends and neighbors used in the past? Were they satisfied?

Now may be a time to review the deductibles on your policy. Did you have a $500 deductible and you got stuck paying for the whole windshield? Ouch! How much more would the insurance be for a lower deductible? Check with your agent. You may be surprised. Now that you’ve had some experience, would it be practical to change to a lower deductible? Is the deductible the same on all your vehicles? Have you recently purchased a new car and continued the same coverage you had on the old car? Or have you recently paid off the loan on your car and deleted coverages? Have your agent run the numbers for you. He’ll be happy to compare the cost of different deductibles for you.