Business Tips and Notes

Back in 2003 we went to California on a business trip. Along with myself, I went with two other enrollers; Debbie and Sherry to work on a school corporation to sell whole life insurance. Since the cost of hotels was rather high and we were going to be out there for at least two weeks, we decided to rent a furnish apartment. Under the short term lease we had to get renters insurance to cover not only our belonging but the contents of the apartment and liability in case we caused any damage.

Apartment renters insurance was available through a few companies, so we got quotes from; Geico, Nationwide and State Farm. Nationwide was the cheapest, so we bought a policy and only paid for one month.

While we were staying there Debbie accidentally knocked over the television set that was in her bedroom. After reading the Renters insurance contract, we figured the liability section would cover the cost of a new set or repair without a deductible. The liability section stated that it would provide coverage for bodily injury or property damage which you or an insured under the policy are legally obligated to pay. We called the insurance company and made the claim.

But you wouldn’t believe what else happened….since we travel a lot we liked the chance to stay somewhere different, and the best thing about this apartment was the waterbeds. The very next day, Sherry was using a knife to peel an apple and accidentally stabs the waterbed causing a small leak. Fortunately, we had purchased the endorsement for waterbeds for an additional premium. Not only did we have a repair bill, we also had some water damage. The waterbed endorsment states; Optional Endorsments you may request for your policy.

Extension of Liability Coverage Endorsement-Waterbeds

This optional coverage pays for damage to property of others that results from sudden and accidental discharge of water from your waterbed. It does not pay for structural damage which results from the weight of the waterbed; slow, gradual leakage from the waterbed or damage to the waterbed itself.

I am sure glad we looked over the renters insurance contract before we purchased it. Other coverages that were included, but subject to a deductible were:

Personal Property Coverage:

Your policy will cover loss or damage to your property when caused by the following perils:

1. Fire or Lightning 2. Windstorm or Hail 3. Explosion 4. Riot or Civil Commotion 5. Aircraft 6. Vehicles 7. Smoke 8. Vandalism or malicious mischief 9. Burglary 10. Falling objects 11. Weight of ice, snow or sleet 12. Accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning, or automatic fire protective sprinkler or from within a household appliance 13. Sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot water heating system, and air conditioning system, or an appliance for heating water. 14. Freezing of plumbing, heating, and air conditioning systems or automatic fire protective sprinkler system or of a household appliance. 15. Sudden and accidental damage from artificially generated electrical current 16. Volcanic eruption

Remember to add the Replacement Cost endorsement to your Renters Insurance policy.

The Personal Property Replacement Cost Endorsement:

The Declarations Page states under Additional Coverages that your policy has Replacement Value coverage.

Without acquiring this endorsment your personal property will be subject to Actual Cash Value (ACV) for a covered loss. ACV means the cost to replace an item with another item of similar kind and quality less an allowance for depreciation.

Replacement Cost (RC) coverage allows full cost to repair or replace a damaged item, as long as the replacement item is purchased within 180 days.

LOSS OF USE

If you can not live in your residence as a result of a covered loss, this coverage will pay for temporary living for a time period for reasonable and necessary extra living expenses you incur over what you have normally spent to maintain your standard of living if no loss had occurred.

Your Renters Insurance policy will have exclusions, along with other optional endorsements. Please read or review your policy with your insurance agent. We were glad we did. I couldn’t imagine our boss getting the repair bills with our expense reports. Our Renters Insurance policy probably saved our jobs.

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