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If you are currently renting or plan to rent soon, we recommend you contact an insurance agent
to discuss renters insurance. While it is the landlord’s responsibility to fix the building if
something like a fire or tornado damages the home, your personal belongings will be your
responsibility to replace. Below are a few tips to help determine if renters insurance is right for
you.

What is renters insurance?

Renters insurance protects your personal property against damage or loss and also protects you in
case someone is injured on the property because of your negligence.

It’s always a good idea to take precautions to protect yourself and your belongings. But, not
everyone needs renters insurance. Dependents, such as college students, may be partially covered
under their parent or guardian’s policies. A common provision provides dependent’s coverage for
up to 10 percent of the parent’s policy. Check with your insurance agent regarding the specific
provisions of your policy.

Why purchase renters insurance?

If you live in a rented apartment, house or condominium, your landlord’s insurance doesn’t cover
your personal property in the event that it is stolen or damaged as a result of a fire, theft or other
unexpected circumstances. In addition to personal belongings, some policies will also cover
living expenses if your apartment or home is uninhabitable due to damage caused by a covered
peril. The premiums for renter’s insurance average between $15 and $30 per month depending
on the location, the policy limit requested, loss history and other underwriting guidelines.

What are your options?

Most renters insurance policies provide two basic types of coverage: personal property and
liability. Personal property coverage pays to repair or replace personal belongings if they are
damaged, destroyed or stolen. This is the most commonly purchased renters policy.

Liability insurance provides coverage against a claim or lawsuit resulting from bodily injury or
property damage to others caused by an accident while on the policyholder’s property.

There are two major types of renters insurance:

• The broad form covers personal belongings against specific events, such as fire or theft. This is
  the most commonly purchased renter’s policy. Typical coverage under this form includes
  damage from fire, lightning, explosion, smoke, vandalism, theft and water-related damage from
  property utilities.
• The comprehensive form provides coverage for a range of events, unless specifically excluded
  by the policy. Considering the potential amount of coverage, the premiums for this policy may
  be higher.

What’s actual cash value and replacement cost?

One important factor to look for when shopping for renter’s insurance is actual cash value versus
replacement cost coverage. While it may not have a large effect on your short-term premiums, it
may make a large difference in your claim.

Actual cash value coverage will reimburse the renter for the cost to replace the personal property
minus depreciation. It’s important to account for depreciation when considering this coverage
option. Replacement cost coverage will reimburse the renter for the cost of replacing the
property.

For example, if a $1500 stereo system were stolen from an apartment, five years after the stereo
was purchased, with actual cash value coverage, the policyholder would be reimbursed for the
current value of the system (likely 50 percent or $750 considering that it’s five years old). If the
stereo now costs $2000, replacement cost coverage would first pay you the actual cash value of
the stereo system and then reimburse you for the difference between the $2000 for the new stereo
system and the actual cash value paid for the old stereo after you purchase a new system of like
kind and quality. The insurer will likely require you to submit your receipts.

It is also important to have a current home inventory list so that if you do have to file a claim,
you can easily show what contents you had before the loss. Here is a link to our free home
inventory list: www.oid.ok.gov/home-inventory/.
For more information on renters insurance visit our website at www.ok.gov or contact the
Oklahoma Insurance Department at 1-800-522-0071.

The recent earthquake swarm in our state has many consumers talking about and purchasing earthquake insurance. The truth is that Oklahoma rests along a fault line and has always experienced earthquakes, but in the past few years they’ve become more frequent. Since January 2009, the earthquake activity in Oklahoma has been about 40 times higher than in the previous 30 years.
With all that shaking going on, consumers are taking steps to protect themselves. Earthquake premiums topped $11.6 million in Oklahoma in 2012. My department is encouraging consumers to sit down with their agents to review their insurance policies and consider earthquake coverage, so you need to be prepared to answer their questions. Now I’m encouraging you, as an insurance professional, to explore and educate yourself about the coverage that is available in the market so that you can advise your clients on this important topic.

1. Why should consumers buy earthquake insurance?

Earthquakes are not covered under a typical homeowners or renters policy and can cause significant damage to property. It’s important for consumers to consider how they would manage the costs of recovering from an earthquake should they be impacted. For example, can they afford to repair or rebuild and how likely is the home or business to be seriously damaged? Brick homes, wood-frame homes with crawl spaces and multi-story homes are the most likely to suffer serious damage from an earthquake. Consumers should also know that most companies won’t sell new earthquake insurance policies for 30-60 days after a quake due to the expectation of aftershocks.

2. How can consumers purchase earthquake coverage?

An earthquake endorsement can be added to home insurance policies, although not every insurance company offers earthquake coverage. Earthquake insurance is also available as a stand-alone policy independent of homeowners insurance.

3. What does earthquake insurance cover?

An earthquake insurance policy covers home repairs needed due to earthquake damage and personal property directly damaged by an earthquake. It might cover increased costs of repair to meet current building codes and costs to stabilize the land beneath structures. It pays extra living expenses while the home is under repair and covers the cost of debris removal.
An earthquake policy typically does not cover damage to lot or land, such as sinkholes. Earthquake insurance also does not protect vehicles and won’t cover the cost of external water damage. Some insurance companies do not cover the replacement of masonry veneer – brick, rock or stone that covers the outside of the home. Be prepared to clearly explain what will and will not be covered for your clients.

4. How much coverage should be bought and how much does it cost?

The price of adding earthquake insurance is a small percentage of the cost of the underlying homeowners policy.
Homeowners decide how much insurance they want to purchase for both the structure and contents. The right coverage value will depend on how much of the repair and replacement costs can be paid out-of-pocket should the consumer suffer a total loss. Earthquake policies vary in cost depending on multiple factors, including the desired level of coverage and deductible amount. They are also determined by the property’s location, age and construction.
Insuring a home for just its appraisal or loan value will likely mean that in the event of an earthquake, there will only be enough coverage to repay the mortgage lender and not enough to repair the home. Additionally, it is important to make consumers aware of insurance policy limits of coverage. Often within these limits are sub-limits on specific items, such as a $50,000 limit on personal property replacement with a $5,000 sub-limit on computers and peripherals.

5. What is the deductible and how is it calculated?

Earthquake insurance carries a separate and substantial deductible. The deductibles work differently than those of standard homeowners policies, including separate deductibles for the home, outside structures such as a detached garage or a fence, and for personal contents. Remember to clarify all the deductibles your client might face if damage is sustained from an earthquake.
The deductible is calculated as a percentage of the insured property’s value – commonly 5 to 10 percent. For instance, a $100,000 home would require a deductible of $5,000 to $10,000.

6. How can consumers learn more about earthquake insurance?

Consumers can learn more by visiting the Oklahoma Insurance Department website at https://www.oid.ok.gov/disasters/earthquakes/.

• Learn more about earthquake insurance
• Read before, during and after an earthquake tips
• Find Oklahoma-specific earthquake insurance facts
• Download NAIC’s Consumer’s Guide to Earthquake Insurance
• Make a Home Inventory list

Oklahoma consumers with questions about earthquake insurance can also call the Oklahoma Insurance Department’s Consumer Hotline toll-free at (800) 522-0071.

In light of recent wildfires and the threat of more activity, now is a great time to review your home and auto insurance policies.
Damage caused by fire and smoke is covered under standard homeowners, renters and business insurance policies. The comprehensive portion of an auto insurance policy also covers fire and smoke damage. There is also coverage for water or other damage caused by firefighters in the course of extinguishing a fire. To make sure you’re prepared for a wildfire or other disaster, you should ask your insurance agent or broker two important questions:

1. Do I have enough insurance to rebuild my home?

A homeowners policy needs to cover the cost of rebuilding a home at current construction costs. Unfortunately, some homeowners only buy the minimum insurance protection required by their mortgage company. Others confuse the real estate market value of their home with what it costs to rebuild it. The Insurance Information Institute suggests you consider the following while discussing coverage needs with an agent or broker:
Replacement Cost
Most policies cover replacement cost for damage to the structure. A replacement cost policy pays for the repair or replacement of damaged property with materials of similar kind and quality.
Guaranteed or Extended Replacement Cost
An extended replacement cost policy pays a certain amount above the policy limit to replace a damaged home, generally 20 percent or more. A guaranteed replacement cost policy pays whatever it costs to rebuild the home as it was before the disaster, regardless of the policy limit. These types of coverage can be useful if there is a widespread disaster that pushes up the local costs of building materials and labor.
Inflation Guard
This coverage automatically adjusts the policy limit, upon renewal, to reflect increases in construction costs. Some policies already include this coverage, but it may need to be purchased separately.
Ordinance or Law Coverage
If a homeowner is required to rebuild the home to meet new building code, this coverage pays a specific amount toward those costs.
Water Back-Up
This coverage insures the property for damage caused by the back-up of sewers or drains. Most insurers offer this coverage as an add-on to a standard policy.
Additional Living Expenses (ALE)
ALE pays for the added costs of living away from home, such as hotel rooms and restaurant meals, while the house is being repaired or rebuilt. If part of the home is rented out, ALE also replaces lost income. Many policies provide coverage for 20 percent of the amount of insurance you have on your house and may specify a time limit. Additional ALE coverage is generally available for an extra premium.

2. Do I have enough insurance to replace all of my possessions?

Most homeowners insurance policies provide coverage for your personal possessions for approximately 50 to 70 percent of the amount of insurance on the structure of the home. For example, $100,000 worth of coverage on the structure of the home would pay for $50,000 to $70,000 worth of personal items.
To determine whether that coverage is sufficient, it is important to conduct a home inventory, detailing everything you own and the estimated cost to replace these items if they are stolen or destroyed. A home inventory kit is available for free at https://www.oid.ok.gov/Home_Inventory.pdf.
Actual Cash Value vs. Replacement Cost
Possessions can be insured in two ways: either for their actual cash value or their replacement cost. Actual cash value only pays a percentage of the original cost because it is no longer worth what you originally paid for it 10, five or even two years ago. A replacement cost policy reimburses you for the full cost of replacing the item, but not up front. First, you’ll get paid for its actual cash value. Later, after you’ve purchased the new item, you’ll be paid the difference between the actual cash value and the replacement cost.

For more information, or help with other insurance questions, please contact the Oklahoma Insurance Department’s Consumer Assistance Team at 1-800-522-0071.

Apparently, thieves like to ring in the New Year with a new car. A new report released by the National Insurance Crime Bureau found that New Year’s Day is the most popular holiday for auto thefts. In 2012, 2,228 vehicles were reported stolen on Jan. 1. Labor Day was second with 2,158 and right behind it was New Year’s Eve with 2,152 auto thefts reported. The value of stolen cars in 2012 was more than $4.3 billion with the average vehicle value totaling $6,019. Here’s how you can protect yourself in 2014.
TOP TEN MOST FREQUENTLY STOLEN
PASSENGER VEHICLES, 2012
Rank Model (1) Thefts
1 Honda Accord 58,596
2 Honda Civic 47,037
3 Ford Pickup (Full size) 26,770
4 Chevrolet Pickup (Full size) 23,745
5 Toyota Camry 16,251
6 Dodge Caravan 11,799
7 Dodge Pickup (Full size) 11,755
8 Acura Integra 9,555
9 Nissan Altima 9,169
10 Nissan Maxima 6,947

Auto Insurance

Auto theft is covered by your insurance policy if you carry comprehensive coverage. Theft coverage will apply to loss of the vehicle and loss of car parts, such as airbags, or items that are stock to the vehicle. More than 75,000 airbags are stolen each year in this
country, costing insurers and vehicle owners more than $50 million a year. Comprehensive coverage is not mandatory, although your lien holder may require it for financing, but it will also cover damage caused by fire, vandalism and weatherrelated events. Premium rates for comprehensive insurance are determined by the risk of loss and the car’s value at the time of loss. Other factors include driving history, type of vehicle, number of accidents, gender and age. The average comprehensive insurance premium in the U.S.
was $133.06 in 2010, according to the National Association of Insurance Commissioners. Antitheft devices are encouraged to deter thefts and insurers often offer discounts for having a device.

In Case of a Theft

If you find yourself a victim of auto theft, inform the police and obtain a police report. You will need this before you can make a claim with your insurer. Having roadside assistance on your insurance policy can be useful when away from home, should your car
be broken into and damaged so you cannot drive it. After filing a police report, gather information such as your vehicle’s title and any leasing or finance information about the automobile to make an insurance claim. The insurance company may also want to know
if there was any personal property in the vehicle or the extent of the damage if the vehicle was not stolen. If the car is not recovered after a given length of time, your insurance will pay the depreciated amount of the vehicle. If the car is recovered but heavily damaged, they will assess that damage and pay for repairs or declare the car a total loss.

Rental coverage is an add-on to your auto policy that may save a considerable amount of money while you wait for the claim to be settled. The coverage is often a small, additional expense, but will pay for itself when needing a vehicle for a length of time
after a theft.

The Oklahoma Insurance Department reminds drivers to take extra care during holiday seasons for vehicle thefts and vehicle burglaries. Following simple tips such as locking your vehicle, parking in well-lit areas and keeping packages in the trunk could help prevent you from being a victim this holiday. For more information on auto insurance, please visit http://www.ok.gov/oid/.

Thinking about popping the question or know someone who just did? Right now, we are in the midst of the engagement season. About 39 percent of engagements take place between Thanksgiving and Valentine’s Day each year. In the middle of dress shopping, tux fittings and cake tasting, you’ll want to take a look at your insurance options and understand how saying “I do” will affect your coverage.

Homeowners and Renter’s Insurance

The time surrounding a wedding is common for people to change living arrangements. Couples often choose whose place to move into or look for a new home to accommodate two occupants instead of one. Remember, location, square footage of the home and construction type are factors in your insurance premium. Making changes to a house can change the home’s replacement value and its insurance needs, so talk to your agent if you will be renovating your existing home.
A life change such as a new marriage is a great time to update your home inventory or make one if you haven’t already. Combining households will likely add belongings and change how much coverage you need in the event of a disaster or loss. Utilizing a free iPhone or Android app is a convenient way to get started or download a Home Inventory PDF.
Other big-ticket items to consider protecting are the engagement ring and wedding bands. Standard homeowners and renters policies include coverage for personal items such as jewelry, but often limit the dollar amount for valuable possessions to $1,000-$2,000. It’s best to consider purchasing additional coverage through a floater or an endorsement, which will also allow for lost jewelry. Some companies also offer stand-alone policies to cover jewelry, giving the advantage of not having a claim on your homeowners policy should something happen to the ring(s). Don’t forget to add those items to your home inventory!

Auto Insurance

Combining auto insurance policies for married couples is a great way to save some money, but make sure you talk about individual driving records prior to doing so. A poor driving record could increase premiums instead of save money. Shop around and get several quotes to ensure the best premium for your auto insurance. Other factors that affect your premium are make, model and age of the vehicle(s). Also, bundling auto and homeowners insurance with the same company generally provides an additional discount.

Health Insurance

When deciding what to do about your health insurance, make sure to compare the cost of adding your new spouse to your policy against keeping your own health insurance. By reviewing provisions related to deductibles, co-pays and coinsurance, you can avoid long-term extra expenses and make the right choice of which plan to keep or eliminate.
If you have health insurance through an employer, marriage is considered a major life event, which allows you to add your spouse to your plan outside of the open enrollment period. For individual plans, contact your insurance agent for specific enrollment requirements for spouses. Keep in mind, insurance companies are no longer allowed to deny coverage for pre-existing conditions, nor can they charge more based on medical history.

Life Insurance

Life insurance is important in helping to secure your family’s financial future. To calculate your needs, consider future income and plans such as the cost of raising children. Any large outstanding debts such as school loans or mortgage payments are also factors to consider. If either or both of you already have life insurance, check with your agent about updating your beneficiary information.
For more information on insurance basics, visit the Oklahoma Insurance Department online at http://www.ok.gov/oid/.

This Christmas, many Oklahomans will welcome a new pet to the family. If you’re one of them, I urge you to consider purchasing pet insurance. There are an estimated 146 million pets in the United States, but only about one million are covered by an insurance policy. If you think you can’t afford it, consider this: The average cost of veterinary expenses during a pet’s lifetime is more than $13,000. Pet insurance can decrease that number significantly.
Medical technology has increased by leaps and bounds for animal treatment and disease prevention. But that technology doesn’t come cheap. If your dog develops an eye cataract, removal and lens replacement could set you back as much as $2,250. A recent report found that the average monthly cost for dogs was about $30, while the average cost for cats was about $19.
An online search for pet insurance will bombard you with a multitude of options. So what do you look for? What should you consider when shopping for policies? What are the main differences between companies, besides price?
Most pet health insurance plans have a few basics in common. There are three types of pet health insurance coverage: accident only, accident and illness or accident, illness and wellness. The cost ranges between providers, dependent on factors such as breed, age,prior medical history of your pet, etc. Other basics include:

• – You choose a reimbursement and deductible from a few options.
• – You go to any veterinarian you choose, pay your vet first, file a claim and then get reimbursed.
• – Any pre-existing conditions and related treatments are not covered. Breeding issues, experimental treatments, and cosmetic surgery like declawing and tail docking are also typically not covered.

There are also differences to look for between companies. Some of the most important differences are:
– Coverage – look closely at coverage and understand the exclusions. Does the policy cover congenital and hereditary conditions? These are conditions that your particular breed may be prone to develop, such as heart defects, eye cataracts, bleeding disorders or Brachycephalic Syndrome, which is common in dogs with short snouts, such as bulldogs and pugs.
– Reimbursement method – how will you be reimbursed? Check to see if the insurance company will pay a percentage, pay what they consider “usual and customary” or pay on a benefits schedule. Benefit schedules or “usual and customary” policy language may lower your reimbursement amounts, so beware.
– Limits – are any limits or caps applied per incident, per year or over the pet’s lifetime? Some policies require a deductible per incident or cap the reimbursement amount for extensive surgeries or after a certain age. These are conditions to watch for so that the money you put into the policy is not greater than what you receive in health expense coverage for your pet.
– Customer care – this is important for all insurance companies and should be considered from the first conversation you have with a customer service representative during your research. After all, service is a huge part of the perceived value and benefits once the policy is purchased. Check to see what other customers are saying about their care and claims experience once you have narrowed it down to 3-4 companies based on the above comparison recommendations.
Whether you opt for pet insurance or not, consider the costs of pet ownership and how you plan to pay for expected and unexpected expenses. Do the research and crunch the numbers so you can be well-informed and prepared. Also, make sure you can handle the added responsibility. Shelters fill up after Christmas when families realize they aren’t equipped to care for the new pets.
If you have any insurance questions, please call our Consumer Assistance Division at 1-800-522-0071.

Meteorologists are predicting that an ice storm coming to Oklahoma has the potential to cause serious damage to homes and businesses. But what you do today could protect you from the worst of it.

According to the Insurance Information Institute (I.I.I.), damage from snow, ice and freezing temperatures causes more than a billion dollars in insurance losses in the United States every year.

Standard homeowners policies will cover you for damage caused by burst pipes, ice dams and disasters related to the weight of ice or snow. In most cases, damage to cars is covered under the optional comprehensive portion of your auto insurance policy.

The I.I.I. offers the following tips to prepare your home for the upcoming ice storm:

Outside Your Home

1. 1. Clean out gutters. Remove leaves, sticks and other debris from gutters, so melting snow and ice can flow freely. This can prevent ice damming, a condition where water is unable to drain through the gutters and instead seeps into the house causing water to drip from the ceiling and walls.
   2. Install gutter guards. Available in most hardware and home stores, gutter guards prevent debris from entering the gutter and interfering with the flow of water away from the house and into the ground.
   3. Trim trees and remove dead branches. Ice, snow and wind could cause weak trees or branches to break and damage your home or car, or injure someone walking by your property.
   4. Repair steps and handrails. This may prevent someone from falling and seriously being injured. Broken stairs and banisters can become lethal when covered with snow and ice.
   5. Seal cracks and holes in outside walls and foundations. Use caulking to protect water pipes and make sure that skylights and other roof openings have proper weather stripping to prevent snowmelt from seeping in.

Inside Your Home

1. 1. 1. Keep the house warm. Set the thermostat for at least 65 degrees. Since the temperature inside the walls, where the pipes are located, is substantially colder, a lower temperature will not keep the pipes from freezing.
      2. Add extra insulation to attics, basements and crawl spaces. If too much heat escapes through the attic, it can cause snow or ice to melt on the roof. Water can then re-freeze, causing more snow and ice to build up. This can result in a collapsed roof, and can contribute to ice damming. Ideally, the attic should be five to ten degrees warmer than the outside air. Well-insulated basements and crawl spaces will also help protect pipes from freezing. You may also consider insulating unfinished rooms such as garages to keep pipes from freezing.
      3. Have the heating system serviced. Furnaces, boilers and chimneys should be serviced at least once a year to prevent fire and smoke damage.
      4. Check pipes. Look closely for cracks and leaks and have the pipes repaired immediately. Wrap exposed pipes with heating tape.
      5. Install an emergency pressure release valve in your plumbing system. This will protect the system against increased pressure caused by freezing pipes and can help prevent your pipes from bursting.
      6. Make sure that smoke and fire alarms are working properly. Residential fires increase in the winter, so it is important to protect your family with working alarm systems. Also, consider installing a carbon monoxide detector, since a well-sealed home can trap this toxic gas.
      7. Learn how to shut the water off and know where your pipes are located. If your pipes freeze, time is of the essence. The quicker you can shut off the water or direct your plumber to the problem, the better chance you have to prevent pipes from bursting.
      8. Hire a licensed contractor to look for structural damage. If damage is discovered, have it repaired now rather than waiting for a problem to occur. Also, ask about ways to prevent water damage due to snow-related flooding. Plastic coatings for internal basement walls, sump pumps and other methods can prevent flood damage to your home and belongings.

Weather experts say power outages are possible with this storm, so please watch the weather, plan ahead, get a generator if you can and stock up the cupboards. For more information or help with other insurance questions, please contact the Oklahoma Insurance Department’s Consumer Assistance Team at 1-800-522-0071.

This week, many Oklahomans will prepare a Thanksgiving feast or travel to partake in one. While it is a wonderful time to celebrate with family and friends, it can also be a dangerous time, both in the home and on the road.
According to the National Fire Protection Association (NFPA), Thanksgiving is the number one day for home cooking fires. In 2011, cooking was involved in more than 156,000 fires that caused 470 deaths, 5,390 injuries and $1 billion in property damage. Unattended cooking was, by far, the leading contributing factor in the fires. The NFPA also found that frying poses the greatest risk of fire. So before you pop your bird in the oven or deep fryer, consider these safety tips.

• Don’t leave the room or area when frying, grilling or boiling.
• Don’t leave anything in the oven without frequent monitoring.
• Make sure electric cords aren’t dangling or within reach of children and pets.
• Move away anything from the stove that could catch fire, such as paper towels,
• oven mitts, wooden utensils, food packaging and curtains.
• When cooking, avoid loose clothing and dangling jewelry.
• If you don’t have a smoke alarm, get one. If you do, check its batteries and test it
• every month. Replace all batteries at least one a year.
• If you use a turkey fryer:
  • Use it outdoors and in an open area away from walls, fences or other structures that could catch on fire.
  • Make sure it is completely thawed. Frozen or partially frozen turkeys placed into the fryer can cause a spillover and may result in a fire.
  • Lower the turkey into the pot slowly to prevent oil from splashing.

If you aren’t hosting the family feast, odds are you’re driving to one. AAA says nearly 575,000 Oklahomans will travel for Thanksgiving. If you’re planning to hit the highway, pre-trip preparation is the key to a smooth ride. You’ll be thankful you followed these tips.

• Check your tire pressure and treads.
• Check your wipers and fluids.
• Have your radiator and cooling system serviced.
• Assemble an emergency kit with a battery powered radio, flashlight, blanket,jumper cables, fire extinguisher, first aid kit, bottled water, non-perishable foods,maps, tire repair kit and flares.
• Keep your eyes on the road: Distracted driving is a major cause of traffic accidents. Even just two seconds of distraction time doubles the chances of an accident. Use your cell phone when stopped and never text while driving.
• Maintain more distance than usual from the car in front of you. In the event of a sudden stop, it helps you avoid crashing into the car in front of you.
• Watch the weather: Weather conditions are constantly changing, especially during temperature drops in the early mornings and evenings.
• Buckle up: Safety belts reduce the risk of fatal injury by 45 percent.

With all those people on the road, there’s bound to be traffic accidents. Make sure you have a copy of your insurance verification form in your glove box or saved on your smartphone. If you have any insurance questions, call our Consumer Assistance Division at 1-800-522-0071.

Despite its long list of benefits, just 31 percent of renters purchase a renters insurance policy. But renters face the same risks as homeowners including severe storms, fires,thefts and earthquakes. Many renters assume their landlord’s insurance protects them, but that’s just not true. That coverage only applies to the structure, not the tenants’ belongings.Renters insurance includes three important types of financial protection: coverage for personal possessions, liability protection and additional living expenses. Loss of belongings can range from damage caused by fire, smoke, lightning, vandalism, theft, explosion, windstorm and water (not including floods). If your home or apartment is damaged by a covered event and you have to live somewhere else, most policies will reimburse you the difference between your additional living expenses and normal living expenses.
Most renters’ insurance policies also offer liability coverage, which can protect you if you are sued due to an accident that occurred at the rental property. The liability policy will also cover the actions of your pets, reasonable medical payments for anyone injured on the premises and damage to the property of others.
For those who think they can’t afford renters insurance, consider this. The average cost is just $185 per year, according to the National Association of Insurance Commissioners. That’s about $15 a month, which is very affordable. You’ll also want to shop around for policies based on the specific amount of coverage you need. In order to determine the correct coverage amount, you’ll need to take inventory of what you have and determine a value for your belongings. According to Bankrate, the average renter has more than $20,000 in possessions. You can get either a replacement-cost policy, which will pay to replace your possessions up to the policy’s dollar limit, or a cash-value policy, which will pay only what the items are worth when stolen or damaged.
Always remember to ask about discounts. Most insurers offer discounts for having a security system, smoke detectors and deadbolt locks. Multi-policy, good credit and senior citizen discounts are also often common money savers.
Of course, to make sure you’re properly compensated for any belongings lost in a fire, storm or other catastrophe, you need to create a home inventory. List each item along with its value and serial number. Photograph or videotape each room, including closets, open drawers, storage buildings and the garage. The inventory and receipts for major purchases should be kept in a fireproof place or a safe deposit box. For more information or help with other insurance questions, please contact the Oklahoma Insurance Department’s Consumer Assistance Team at 1-800-522-0071.

Insurance companies consider many factors when determining your rate. While many of those factors are out of your control, there are several things you can do to save money.

1. Shop around!

This point cannot be stressed enough. It takes time and effort to shop insurance from different companies, but it will pay off. The Oklahoma Insurance Department website offers information on typical rates charged by major insurers and questions to ask potential agents before receiving quotes.
Also, check consumer guides, recommendations from friends and family and what insurance agents have to say. Before making a choice, you should have a good idea of price ranges and what companies are offering the lowest prices for the insurance coverage you need. Ask agents what they would do to lower your costs. Price is not the only factor to consider, however. Keep in mind quality of service for when you need assistance with filing a claim. You should also check each company’s complaint history through the National Association of Insurance Commissioner’s Consumer Information Source, https://eapps.naic.org/cis/.

2. Raise your deductible.

It is often recommended to have a deductible of at least $500 on your homeowners policy. The deductible is the amount of money you will pay in the event of a loss before your insurance company pays the claim. If you can afford to pay more money towards a loss in the form of a deductible, raising it to even $1,000 can save quite a bit on your premium. Keep in mind that policies often have separate deductibles for wind and hail losses. Typically, the deductible is one or two percent of the insured value of the property.

3. Bundle, bundle, bundle! Buy your home and auto policies from the same insurer.

Insurance companies that offer homeowners, auto and liability coverage will generally give a discount anywhere from 5 to 15 percent off your premium if you buy two or more policies. This does not guarantee a lower price overall, so make sure that the premiums with the discount do not total more than if you bought policies from different companies.

4. Grab your discounts! Improve home security and ask about other discounts.

Don’t be afraid to ask your insurance company about available discounts. Companies often offer several different types, but not all offer the same discounts. Common discounts include a percentage off for installing smoke detectors, burglar alarms, monitored security systems and deadbolt locks. A high-end sprinkler system could also trim your premium, but they can be expensive. Find out what type of sprinkler system your insurer recommends and if the annual insurance savings will offset the cost.

5. Review the limits in your policy and the value of your possessions at least once a year.

Bottom-line, you want to have the coverage you need but do not want to spend money on coverage you do not need. Your policy should cover your house and major purchases that are inside of the house. Whether those items are covered at replacement cost or actual value will affect your premium. And, if you have items, such as jewelry, technical equipment and art covered under a separate endorsement, consider whether those items have gone down in value since you insured them. If so, you may want to reduce or cancel that extra coverage from your policy. You do not want to run into a problem with too little coverage, but by reviewing your possessions and policy each year, you can save some money and be protected from a loss.
For a quick glance at how to find the best rate for your homeowners policy and to better understand rates in Oklahoma, visit the Oklahoma Insurance Department online at https://www.oid.ok.gov/insurance-basics/.