CasaSugar

Your Two Cents: Is Renter's Insurance Worth It?

SavvySugar — Wed, 04 Nov 2009 06:00:23 -0800

Sure, it's always better to be safe than sorry, but sometimes being safe is costly and troublesome - and turns us off. Renter's insurance, for example, seems a necessary precaution to protect your rental apartment or home. But a recent poll among my friends revealed that even savvy, intelligent women are too bothered by the hassle and the anticipated cost of signing up.

If renter's insurance doesn't seem like a big deal to you, look at it this way: if you're a renter and something happens to your home, you might lose everything, and no one is responsible. Not your property manager. No one. Even in the event of a fire or a flood, your landlord is not legally responsible to cover the damages. Don't take my word for it; read these renter's nightmares and you just might be convinced to get yourself insured. And the truth is, it's actually pretty low-cost - depending on your policy, you could spend as little as $20 a month. So, tell me, do you think renter's insurance is worth the trouble?

If You Rent, Do You Have Renter's Insurance?

CasaSugar — Tue, 20 Nov 2007 04:10:32 -0800

Unfortunately, if you rent, your landlord's insurance policy does not cover your personal property. Renter's insurance provides liability protection against accidents (injuries, property damage), as well as financially damaging events like fires and theft. Compared to the amount of property you could lose in these cases, rental insurance is pretty cheap. Have you ponied up to protect yourself?

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Primer: Renter's Insurance

CasaSugar — Fri, 10 Aug 2007 10:45:00 -0700

I bought a renter's insurance policy when I moved into my first apartment out of college, and I've since become a sort of evangelist for the cause. It's so cheap and easy to protect all of your belongings from theft, fire, and water damage, yet most of the renters I know still don't have insurance. (Note: Policies do not cover natural disasters like earthquakes.)

Even if your most prized possessions seem frivolous - a $400 pair of shoes, a portrait of John Krasinksi -that doesn’t mean you don’t deserve to have them replaced. Here are five things you need to know about renter's insurance.

Getting a policy is incredibly easy. You can go online to obtain quotes from most providers, including State Farm, AAA, and Geico, then follow up with an in-person meeting to do the paperwork. The whole thing takes less than an hour.
It's also incredibly cheap: If you're a single or co-habitating apartment-dweller, your rate will probably be between $150 and $250 a year. That's about $20 a month or less.

Three more renter's insurance insights, so read more

A policy insures your stuff, not your place. If your landlord has insurance on the building, it won't do you any good if you lose your possessions in a fire. But since it's not tied to a specific apartment, it's easy to transfer the policy when you move.
There are two ways to get cash. You can opt for actual cash value coverage, which pays out according to the current value of the lost items, or replacement cost coverage, which considers how much it would cost to replace all of your possessions if you bought them brand new.
Use photos to itemize. A renter's policy isn't itemized; it covers a lump sum based on the estimated worth of your possessions. So you should also take photos of the items covered by your policy and keep them somewhere safe besides your house. That way, if something does happen, you’ll have proof to show the insurance company.

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Insurent Helps First-Time Renters Get Decent Apartments

SavvySugar — Wed, 23 Jul 2008 12:29:42 -0700

Adventure and possibility push new grads to move to a new city and many (including yours truly) do so with low entry-level salary offers in hand. While you're sure of your ability to pay monthly rent and are willing to fork over a high percentage of your salary, searching for an apartment without a certain level of income can be an incredibly frustrating process.

Many landlords require a renter's income to be as much as 45 times monthly rent, so new grads without that pedigree might find themselves as I did: moving in to a tiny apartment in a walk-up building with steep stairs, a blocked fire escape, windows that didn't fully close, and a charming water heater taking up half the closet-sized kitchen. Find out how one company is helping new grads and relocated international workers when you read more.

Insurent is a new company that basically insures the rent on a unit when a landlord's requirements block an apartment hunter from being considered. Renters pay a fee for the service as with any other type of insurance, and a background check is done before eligibility is granted.

Similar to landlords, Insurent requires identification, employment verification, and a credit score higher than 630. But where landlords may pass over an applicant whose rent isn't about 45 times monthly rent ($90,000 for a $2,000 place), Insurent extends its service to applicants who make 27 and a half times their monthly rent ($55,000 for a $2,000 place).

The company is targeting new grads with job offers and professionals relocating to the US without American credit history. Depending on credit score, Insurent's fee can be from 58 to 110 percent of monthly rent. It can be a hefty price to pay to get a secure roof over your head, but so far 35 renters have their rent guaranteed by the company.

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Could Twitter and Foursquare Bump the Price of Home Insurance?

GeekSugar — Mon, 22 Feb 2010 03:47:44 -0800

I suppose this makes sense: a UK-based price comparison website predicted that homeowners insurance rates could rise up to ten percent thanks to the popularity and use of location-based services like Twitter and Facebook. I've already suspected that Foursquare could equal overshare thanks to the "check-ins" that let everyone know where you are (or where you're not: home), and insurance companies could be bracing for an increase in break-ins because of it.

Aptly-named website PleaseRobMe is trying to make people aware of how easy it is to determine whether your place is empty by locating and compiling tweets and status updates of people who obviously aren't home, using it as a "slap across the face" to make you more aware of what you tweet. I'm pretty darn careful when it comes to broadcasting where I am, but that's not to say I don't like to brag a bit when I'm at a really great restaurant, or seeing a show I'm excited about. At least the knowledge that my renters insurance rates could spike will make me even more cautious about what I'm declaring to the world! Want some tips on how to keep your location private? Then just read more.

Only use location-based services when you need them. Sites like Loopt, Where, and Foursquare may be fun, but letting everyone know your routines could spell bad news for your home security.
Don't post your address anywhere. This should be a given!
Don't tweet about vacations, unless you have a house sitter. Declaring that you'll be in Mexico during Spring Break is only asking for trouble.
Think before you tweet! Something as simple as tweeting about your meal while out to dinner could tip someone off that you're away from home.
Don't friend anyone you don't know on a location-based app or service. Yes, Twitter may be all about the numbers, but do you really want some dude knowing where you are right now cause you friended him on Loopt just to add one to your list? I don't think so.

10 Tips For Short-Term Rental and Sublet Agreements

CasaSugar — Fri, 09 Jan 2009 07:00:23 -0800

Did you know that Washington DC residents are renting out their homes for the Jan. 20 presidential inauguration? Residents can stand to earn a pretty penny: the pictured home is renting for $550 a day! The practice is becoming so popular that there's even a website dedicated to the cause. Whether you're a DC resident looking to rent out your house for inauguration weekend, or a homeowner or renter who'd like to do a short-term sublet for an upcoming vacation, it's better to be safe than sorry when offering your home to a stranger. Douglas Culkin, president of the National Apartment Association, notes that, "By taking some basic precautions, people can leave their homes feeling like they have done their due diligence to ensure a smooth renting experience.”

To see tips from the National Apartment Association, read more.

Draw up a basic, legally binding agreement to secure payment that includes a damaged property clause. Get 50 percent deposit in advance.
Give strong consideration to doing a background check of the resident. It costs about $30 to $40 and can be done in minutes. Search for “resident screening” to find a vendor. Incorporate the cost of the screening into what you are charging for “rent.”
Make sure you're protected with insurance - if someone injures themselves in your home you may be liable. Check your policy.
If you currently rent your home and are thinking of sub-letting it for the week, check with your landlord to make sure you are legally allowed to do so before you post your advertisement.
Make a duplicate set of keys. Send them via an insured carrier service but do not include your home address anywhere in the package, in case it gets lost or stolen before reaching its intended recipient.
Change the locks after they leave. Incorporate this cost into what you charge for rent.
What about pets? If your lease agreement allows them, you'll have to decide if you want to let a renter bring their pet for the week, but be clear if no pets are allowed so there are no surprises upon your return.
As a courtesy, alert your neighbors, who will see strangers entering and exiting your home during their stay, so they don't call the police.
You'll exchange emergency numbers with your renters, but in case you are not immediately reachable, leave a second local emergency contact number, especially if you plan to leave the area.
Clean out the fridge, make some closet space, etc. Schedule to have a cleaning company come before the renters arrive and after they leave. No one wants to see the other's leftovers.

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Ask Casa: A Home Security System for My Rental? (Part 2)

CasaSugar — Thu, 15 Nov 2007 16:00:22 -0800

Recently Arielb38 wrote to me asking about whether or not a home security system was necessary for her new rental home. You can read the first half of my response here.

To see the rest of my tips, just read more

Are all of your window and door locks in working order? When you move into a rental unit, the landlord should be willing to either change the locks or have the tumblers replaced. If he or she is not, invest the money and do it yourself. Many communities now require rental properties to have deadbolts that can only be opened with a key. Check your local and state rental laws and request that your landlord meet these standards.
Additionally, if you live in a sketchy neighborhood, you may want to request that your home has bars installed on ground-floor windows. Though not the prettiest to look at, they do deter theft.
Make friends with your neighbors - they are your best allies in keeping your neighborhood safe. Join or consider founding a neighborhood watch organization in your building or on your block.
Buy renters insurance! It's cheap (as little as $150 a year) and is a small price to pay if you lose your belongings due to theft or natural disasters, such as a fire or earthquake. Most major insurance companies underwrite renters policies, and many online insurers specialize in providing coverage to renters.
If you still need a security system, and your landlord won't work with you to provide one, look into the company Protect America, which recently began offering its wireless GE home security systems with an innovative program that allows renters to take the system and the monitoring service with them when they move.

Good luck with your move, and be safe!
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6 Ways to Cut Back on Utilities and Household Costs

SavvySugar — Tue, 31 Mar 2009 13:30:24 -0700

Running a household isn't cheap. Whether you're a renter or an owner, you have a collection of other costs - from insurance, utilities, and groceries to cleaning and repair fees. Most SavvySugar readers dish out a minimum of $100 per month on utilities alone. If you are looking for ways to reduce all the dolla dolla bills going out the door, check out some of my household cost-cutting suggestions.

Trade Magazines, DVDs, and Books With Your Friends	Never Home? Consider Stopping Internet, Phone, or Cable	Take Stock of Your In-Home Media Memberships
A Cheaper Way to Clean Your Home	Five Energy Saving Ideas For Renters and Owners	Unplug When You Don't Need Power

Tough Stuff: Buy vs. Rent

SavvySugar — Mon, 18 Feb 2008 09:50:41 -0800

If home ownership is a personal goal for you, then you and I have something in common! I'm excited for the day that I have a home sweet home, and I am constantly thinking about what it will take financially to get there. Here are some questions we should all ask ourselves and steps we should take in deciding to take the leap from renters to owners.

How long would you plan to live in your new home? The general consensus is that if the answer is three years or fewer, keep your renter identity until you're ready to settle in a bit longer. It takes some time to break even on the closing expenses.
Are you ready to give up the flexibility of renting? When my washing machine broke a few months ago, it was replaced with a new one free of charge. You will have higher maintenance fees when you own a home.
How much do I need to save for a down payment and closing costs? If you put a minimal down payment, you may need to get private mortgage insurance until you have sufficient equity in the home. Closing expenses generally range from three to eight percent of the house price, depending on various factors.
Will I have enough money each month to pay the mortgage, insurance, maintenance costs, and property taxes? Suze Orman wrote about an exercise that I think is worthwhile. She noted that, on average, you need to add another 40 to 45 percent to your monthly mortgage payment to get a more accurate total monthly cost. Assuming that your mortgage payment is similar in cost to your rent, open up a savings account and deposit the equivalent of the 40 to 45 percent to get an idea if you could handle the extra expenses.

Using a buy vs. rent calculator can be a helpful when figuring out if you should rent or buy your abode.

For informational purposes only. Consult your financial adviser regarding the benefits of buying or renting. Total Deposits at Washington Mutual are FDIC insured. Thank you to WaMu for sponsoring this post.

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Geek Tip: Keep Your Gadget Boxes . . . Just in Case

GeekSugar — Wed, 20 May 2009 14:33:20 -0700

This tip is kind of hard for me to write because I'm very big on recycling any cardboard box that comes through my door and can't be used as storage (when you live in a small place and love buying new gadgets, they tend to pile up).

But when TeamSugar member lydiat had her house broken into recently, she benefited from having held on to the boxes her gadgets came in.

The officer helping lydiat was able to get the serial number for each item from the boxes, making it so if the gadgets are recovered, they'll be able to tell which are hers from the numbers. Of course, if you're short on space, you could also just cut the numbers off the boxes.

Sadly, even though lydiat has employed additional super-geeky ways to find her old gadgets, none have shown up yet.

Oh, and a lesson lydiat and I both learned from this debacle: get renter's insurance immediately.