I pay quite a bit of money to carry Renter’s insurance and also special business insurance.
I was thinking about it, and realized that if I lost everthing, the amounts I carry really wouldn’t replace everything.
Can I legally buy a second renter’s insurance policy to cover what the first one doesn’t? If I can, must I tell them about each other? What are my obligations?
Thanks to all the insurance experts in advance.
stoid
I’m no expert, but there shouldn’t be a problem with it. I know many people who have multiple life insurance policies, for instance. When they croak, their benefactor(s) get both. I don’t see why renter’s insurance would be different.
People get supplemental health insurance. I don’t see what the problem with supplemental renter’s insurance would be. I suppose you can’t be insured for more than what your possessions are worth however.
The short answer is that laws and policies vary and consult an insurance agent but, in general terms, it would not be admissible to insure for more than the value, this for obvious reasons: If I have a house worth 100K and five insurance policies on it for $100K each, I have a pretty strong incentive to burn the house down. Generally no matter how many policies you have they will not jointly pay more than the value insured. A life policy is no different except that the value of your life is not limited.
Some policies may require you to carry some of the risk in the form of deductible or percentage. Some may limit the coverage but will allow you to get a separate umbrella policy… There are many variables but in general, hiding one policy from another insurer is not a good idea as you may find out later they refuse payment. Just ask them openly. If you consider you are under-insured, just tell them so and see what is the best way to correct it. They want your business.
Thanks for the help.
Actually this was all prompted by a nightmare I had last night where the house burned down. All this morning, as I drifted in and out of sleep, my mind was consumed with thinking about what would need replacing and how much it would actually cost to pull it off. More than my insurance.
And of course, there’s the irreplacable stuff, but I don’t even wanna think about that.
Fortunately. I live in a 1 story house with openings everywhere you look, it’s tile throughout, and I work at home, so we are here nearly 24/7. Even so, I have some work to do to get some stuff backed up, off site, etc. Cautiousness, ya know?
stoid
Stoid, carrying multiple policies is not that unusual. As mentioned above, some people have supplemental health insurance. The main thing in keeping it all OK is to have it above board. Your primary insurer will likely be soaked for the entire value of the policy if it truly fails to cover the value of the loss, and the secondary insurer then covers the remainder.
An alternative to carrying two (or more) policies, if you feel that you’re underinsured, would be to consult with your existing carrier regarding increasing your coverage.
The number of policies is really not relevant. What you cannot have is several policies covering the same risk. But there’s nothing wrong with having a home policy which covers up to 200K and an umbrella policy which covers any excess over that up to a million. They do not cover the same thing. In other words, you get paid from one source or another only once. If you suffer a loss for 500K, the first policy covers the first 200K and the second one the next 300K.
But if you had several policies covering the same stuff they would probably only be legally required to pay for the actual loss and no more. For obvious reasons insurance companies do not want you making a profit .
The supplemental policy should also be cheaper, since it will only be invoked if you lose everything, and not in more common circumstances like a robbery or small amounts of damage.
Sorry to come in on this late, but I just stumbled across it.
The real deal here is to be sure that you’ve got coverage for REPLACEMENT value. That means your shack burns down, 100% of the value is paid. Otherwise the insurance company pays you the DEPRECIATED value of your belongings, which is always going to be less – much less – than what you would need to replace those items.
Replacement value insurance costs more than depreciated; depreciated is the norm. But if you want full coverage, that’s really what you need.
You’ll also have to keep pretty good records showing what you have and what it’s worth. Savings sales receipts is a good idea, so is hanging on to any written appraisals you may have; be sure to keep up-to-date appraisals on items that may increase in value over time, such as antiques. And keep an eye on the cost of living and be prepared to adjust accordingly if and when possible; you don’t want to have a claim in 2005 paying, say, circa 1995 valuations on your belongings.
Videotaping your home, showing all of these belongings in place around the place is also helpful. Store all this information somewhere safe not in your home, like a safe deposit box. If you’re ever at the place where you’re going to be arguing with these people about how much you’re going to get, unless you have proof you’re not going to get much.
Finally, talk to an expert. An insurance agent can tell you what’s available in your area, policies vary from state to state.
As someone who’s been through a few of life’s calamities, I can testify to the value of insurance. At least you’ll sleep better at night.
your humble TubaDiva