Frequently Asked Questions
I already have renter’s insurance, but I just moved into a condo. Do I really need condo insurance?
Yes, you definitely do. Renter’s insurance falls short in condo or co-op living because there often aren’t clear divisions to make clear what liabilities are the responsibility of the renter, the condo owner, and the condo association. You need a policy that makes it very clear what you are personally responsible for, and that covers you in the event of any of those instances.
A renter’s policy is much simpler, because there are rules about what is the renter’s liability and what is the liability of the apartment owner. Condos and co-ops have individual rules based on their self-created by-laws, and they change depending on each property. If you’re living in a condo, you need an experienced insurance agent to look over the by-laws and create a policy that covers you properly.
I already have a homeowner’s policy and an auto policy. Isn’t umbrella coverage overkill?
Not at all. Umbrella coverage is there to make sure you have coverage in the event of the unforeseen. We’ll always advise you to get the most coverage you can in both homeowner’s and auto policies, but we keep in mind that your budget is limited – and even if you get the maximum coverage available, in some situations that maximum isn’t enough to cover all your expenses. Umbrella coverage takes over where these policies tap out.
Umbrella coverage also ensures you have protection against slander, libel, malicious prosecution, shock and mental anguish, and false arrest, detention, or imprisonment, among other personal liability situations – none of which are included in a homeowner’s or auto insurance policy.
Doesn’t my homeowner’s policy cover my personal property if it’s stolen or damaged? Why do I need a separate policy for valuables?
Your homeowner’s policy offers compensation for your damaged property, but the way it’s calculated can mean that you find your coverage is far short of the actual value of certain expensive items. For example, a homeowner’s policy will offer a certain amount to replace a bicycle that was burned in a fire – but if this was a top-of-the-line, specially made competitive racer, that coverage won’t be enough to replace the actual item you lost.
Valuable property insurance makes sure you are appropriately compensated for those items that aren’t covered by homeowner’s insurance, such as expensive jewelry, wedding gifts, and valuable equipment.
I don’t live in a flood area, so flood insurance isn’t important for me – right?
We’re not sure if you’ve noticed, but the weather has been getting a little unpredictable lately. Areas that were not previously prone to flash flooding have seen entire cities underwater, and seasonal storms can be heavier and more intense than in recent years. Even if you live in an area where only your average rainfall happens every year, it’s still possible that your drainage system can fail or be overwhelmed. We recommend flood insurance for most people in the states where we offer insurance: New Jersey, New York, and Pennsylvania.
We’re both completely healthy and we haven’t even had kids yet. We’re too young to invest in life insurance – aren’t we?
The younger the better, in fact. Life insurance is one of the most affordable types of insurance available, and investing in it early ensures you can lock in lower rates and more favorable terms.
What’s more, life insurance is far more essential in situations where the need for it is unforeseen. Later in life, you’ll make plans in addition to life insurance to ensure that both you and your partner will be able to live well even if one of you unexpectedly dies. When you’re young, you don’t anticipate such a need – which means you’re often caught flat-footed when the unthinkable happens.
None of us can predict the future, and unfortunately unexpected deaths, by sudden illness or accident, can occur at any age. We can’t protect your family against the devastating loss they’ll experience emotionally – but we can protect them against the burden of financial hardship.
My home is paid in full and we both receive Social Security. We’re too old to invest in life insurance now, aren’t we?
It’s great that you’ve planned ahead and made sure your partner will have an income and a place to live in the event of either of you passing. However, there are quite a few other unforeseen expenses that life insurance can cover, and they’re well worth having.
Your spouse or partner may rely more heavily on your contributions to the household than you realize. You may help them manage illness or medication, take them to various necessary errands, or handle the bulk of the household chores. (Or vice versa.) Life insurance can help offset the cost of assistive living and in-home care if either you or your partner are unable to continue living without assistance.
Finally, life insurance covers the cost of a burial – which can be a significantly more substantial expense than most people expect.