Monthly Archives: September 2012

How Do I Determine How Much Renters Insurance I Need in Pennsylvania?

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The one question that every local insurance agent hears is, "How do determine how much renter’s insurance coverage I need?" A renters insurance policy protects a home renter from losses to their personal belongings. The amount of coverage that they will need depends on how much stuff they have and what kind of liability exposure they have around the property. There are a few things that all renters can do to figure out how much coverage they will need on a policy.

How Much Do I Need in Liability?

Liability protection is a coverage that protects the policy owner from a lawsuit from a person hurt while on the premises. The person filing the suit may trip over an object or be attacked by an animal and they have the right to sue for damages. In order to determine how much liability coverage you needs think through the amount of risk you have around your home.

  • Is there a pool?
  • A pet?
  • Lots of trip hazards?
  • Uneven floors?

There are a lot of things that can prompt a lawsuit, so choose a level that is high enough to pay all the charges.

How Much Personal Belongings Coverage do I Need?

In Dunmore, Honesdale and Milford, Pennsylvania a renter’s policy is essential for replacing personal belongings that are damaged from a covered peril. To determine how much coverage you need you will need in Pennsylvania go over all of your personal belongs and estimate the cost to replace all the items. Start off with the big ticket items such as computers and other electronics, and then go over all the furniture and list out what you have. Then, go over the small items such as clothing and decorations and estimate what it would cost to replace all the items. Finally, total the estimates together and you will have a good figure to insure your items for.

What are the Costs to Rebuild My Home in its Current Location in the Event of a Total Loss?

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No one wants to think about the devastation they would feel if they lost their home to a fire. Unfortunately, this tragedy can happen to anyone, which is why you need to be prepared. Making sure that you have the right home insurance policy is essential.

Choosing the appropriate amount of home insurance coverage is one of the most important decisions you will make. Without an ample amount, in the event of a total loss, you will be unable to completely rebuild your home at your current location in Dunmore. This is termed ‘insurance to value.’

Insurance to Value, Explained

This term refers to the relationship between the selected amount of insurance coverage and the amount necessary to rebuild a home identical to the one you lost.

The Costs to Rebuild are Different from Your Home’s Market Value

While your home’s market value will reflect current economic conditions, as well as other factors that are not related to construction costs, rebuilding your home costs are based entirely on the cost of the labor and materials in your area. This means, that it is very important that your home is insured based on the cost to reconstruct it, not its current market value.

Reconstruction Costs more than New Construction

Costs to rebuild are higher because new-home builders are usually building multiple homes at the same time. They solicit bids from numerous sub-contractors, which allow them to receive the best pricing possible. They will save money by purchasing in ‘bulk.’ When they are only rebuilding your single home, they do not receive any discounts.

Ensuring You Have Proper Coverage in the Event of a Total Loss

  • Ask your local insurance agent about the available coverage options.
  • Inform your local insurance agent about changes made to your home.
  • Regularly review your insurance to value ratio with your agent.

If you insure your home for any amount less than 100 percent insurance to value; you are risking not having enough coverage to rebuild your home at your current location, in Pennsylvania in its entirety.

The Difference Between Full Tort and Limited Tort Coverage in Pennsylvania

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When you hear the word insurance what do you think about? Do you think about the high premium you are paying? Or, do you think about the levels of coverage you have on the policy? Understanding your insurance policy is an essential part of being insured. There is one part of a Pennsylvania insurance policy that you must understand or it can affect the way the policy covers an accident. It is the difference between full tort and limited tort.

Understanding Limited Tort in Pennsylvania

It does not matter if you live in Honesdale, Milford or Dunmore, PA full and limited tort laws are the same. Limited tort means that you cannot sue for compensation for pain and suffering as a result of an auto accident. The amount of pain and suffering a person goes through can be extreme. Limited tort limits the amount of protection that your auto policy gives you.

Some policyholders rationalize the savings, about 15% on the average, which they receive as a result of having limited tort. Some may even think that they will not be injured in an accident. In all reality they may never be hurt in an accident, but why take the chance?

Understanding Full Tort in Pennsylvania

An auto insurance policy owner with the full tort option has the choice to sue for pain and suffering if they are ever hurt in an accident. In order for them to be able to collect the other driver must be the one at-fault. The amount of money that you can collect under this coverage is more than enough to offset any savings under limited tort. Your local insurance agent will be able to advise you as to which option is better for you.

What are the Advantages to Using a Local Agent in Pennsylvania to Purchase Insurance?

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Are you in Dunmore, Pennsylvania, looking to purchase a policy? From Milford and Honesdale to other places in Pennsylvania, it can pay –quite literally – to use a local insurance agent to secure a policy.

Every location is different. For nearly any type of policy you can consider, these dynamics play a huge role in the coverage that you need. Your local agent will know of any flood concerns for your homeowners policy, for instance, where relevant.

In a more general light, the reasons why a local agent is better are quite apparent. As present in the previous example, the helpful advice that a local agent can provide is often superior. Take a look at the following examples and situations:

  • New Insurance Shoppers: Are you buying your first home or looking for a car insurance policy for your teen? The local agent can guide you along the way, in order to obtain the best level of coverage.
  • Questions: Direct, online quotes cannot provide the same level of service as local agents.
  • Claims: When you need to file a claim, you can simply call your local insurance agent who knows you by name. With online quotes, you’re likely looking at a 1-800 number, or perhaps an automated system.

From obtaining maximum service to even supporting your community, the local agent can provide a number of distinct advantages. In the initial stages to – hopefully – years of service, you will receive the highest quality of service from a respected local agent.

As a result, the overall quality of service and expertise can be significant. Who else will know the best coverage options in Dunmore, Milford, and Honesdale, Pennsylvania?

Call your local agent in Pennsylvania to experience the highest level of service. It may be the easiest way to save money on your next insurance policy.