ANSWERING THE 5 MOST FREQUENTLY ASKED QUESTIONS ABOUT CONDO INSURANCE

Owning a condominium isn’t for everyone, but for those of you looking to downsize a bit, turn over landscaping chores, or retire to warmer climates, a condo can be a great alternative. With fewer responsibilities to worry about and a new set of rules to follow, however, life in a condo may take a bit of adjusting for some people – especially when it comes to purchasing insurance. To help explain some of the most frequently asked questions our policyholders have about condo insurance, Sandvik Insurance Agency put together this helpful guide:

How does condo insurance work?

Because condo owners are ultimately only responsible for the personal space they live in, condo insurance works much differently than homeowners. Whereas homeowners are responsible for insuring the inside and outside of a home (as well as the land it sits on), condo insurance typically only requires owners to insure the interior of their residence. Since owners of a unit do not own the entire condominium complex, the land your condo sits on, the condo’s building structure, and the building’s common areas are all shared by the collective group of condo owners. From an insurance standpoint, individual unit owners typically pay a monthly fee to their homeowners association (HOA) to assume responsibility and cover these common areas.

What are condo owners personally responsible for?

When it comes to determining what condo owners are responsible for insuring themselves, there are usually two different types of master policies:

Bare walls-in: Master policy covers all real property on the interior of the unit, except for the fixtures and appliances (i.e. granite countertops, bathroom fixtures, kitchen fixtures, and flooring).

All-in: Master policy covers all fixtures, installations, and additions within the interior of the unit. The unit owner is only responsible for personal items.

What will the homeowners association (HOA) cover?

Though condo owners are responsible for insuring their own unit, when something happens to the shared buildings and common areas, the condominium’s HOA takes responsibility. For example, if the building were to sustain damage during a natural disaster, the HOA will make the claim to the carrier and, in turn, they’ll be covered for the loss. However, if there’s a deductible for the claim, that deductible will be split evenly and charged to all unit owners. In other words, if there were a $10,000 deductible and 10 unit owners, each unit owner would be charged $1,000. To learn more about your HOA’s insurance agreement, contact the HOA manager.

What about liability coverage?

Determining who’s responsible for what is easily the most confusing thing about condo insurance. In the case of liability coverage, condo owners will be held responsible if a visitor is injured inside their unit, they accidentally injure someone away from their unit, or they damage someone else’s property. If someone is injured in one of their complex’s common areas (e.g., visitor slips in the pool area), the HOA insurance will typically be responsible.

How much coverage is necessary?

Once condo owners have figured out exactly what is covered under the master policy, it’s time to acquire individual coverage for their unit. One of the easiest ways to do this is by taking a home inventory. Going through your items of value (e.g., TV, computer, jewelry, furniture, appliances, etc.), take pictures and make sure you write down the item’s name, manufacturer, model/serial number, date purchased, and purchase price. By writing down as much information as possible, your insurance agent will have an easier time assessing how much coverage is needed, as well as assessing how much compensation you’d receive in case something were to happen.

Whether you only use your condo for vacation, or you live there year ’round, it’s very important that you’re familiar with your condominium’s insurance policies. Though this resource is intended to serve as a helpful guide, policies vary from association to association, and insurance carrier to insurance carrier. To learn more about properly protecting your condo, contact your local independent insurance agent today! 

How To Protect Yourself From Identity Theft

If you frequently make purchases online, or if you use a credit or debit card while shopping, you know that one of the most common risks associated with these practices is identity theft. Of course, identity theft can happen to anybody, even if you don’t use your debit or credit cards while shopping, but when consumers share important financial information online, they’re putting themselves at a higher risk. Unfortunately, with online shopping becoming more and more popular, identity theft continues to become increasingly common. Luckily, however, there are many steps you can take to safeguard your identity and prevent yourself from becoming a victim. Apart from protecting yourself with the proper identity theft coverage, make sure you follow these tips for keeping your identity safe:


Only Carry the Essentials

Though we can all understand the importance of carrying around a wallet or purse, some people like to carry around their social security card, all their credit cards, their passport, and sometimes even their birth certificates. While there certainly are a few situations in which you would need to present each of these documents to someone, in most scenarios, it’s overkill. Imagine if you were to lose any of these important documents: Someone could find it, begin taking out more credit cards in your name, making unauthorized purchases in your name, and much more. To help prevent this from happening, it’s important to only carry around with you the personally identifying items you need the most: like your driver’s license, insurance card, debit card, and one credit card.

Beware of Fraudulent Phone Calls and Emails

If someone sends you an email informing you that you’re a distant cousin of a wealthy prince in Zimbabwe, and they need your bank account information to send you a share of his riches, 1,000 times out of 1,000 it’ll be a scam. Likewise, if the phone rings and the person on the other line says they’re a government employee requesting personal information, don’t necessarily believe them right off the bat, because this could be a scam designed to rob you of your identity. The only time that you should consider it safe to give out your personal information is if you were the one who initiated the call/email, and you know it’s a trusted source.


Shred Unwanted or Expired Documents

Whenever you get something in the mail, even junk mail, one of the best ways to safeguard your identity is to shred any of the envelopes or documents that have your name, address, date of birth, social security number or account information on them. Scammers have gone to great extremes to get personal information, and they won’t think twice about raiding your trash. In addition, whenever you get a new credit or debit card (or any important documents, i.e. passports), shred the old and expired ones so that your name, account numbers, and personal information can’t be easily recovered.

Only Shop on Secure Websites

As mentioned before, if you like to participate in online shopping, you should be aware of the very real dangers that exist. While online shopping, in and of itself, isn’t inherently bad, you run the risk of becoming a victim of identity theft whenever you put your credit or debit card numbers online—especially when you use your debit card. Unlike debit cards, credit card users are protected by the Truth in Lending Act, which states there’s only a $50 limit on liability for unauthorized purchases, even after your missing card has been used. As for debit cards, however, you could be liable for only $50, but you could quite possibly lose every cent in your bank account too. That being said, the best way to keep your identity safe while shopping online is to only shop on websites that have the secure lock symbol at the top of the page and that start with: “https.” If neither one of these security measures are in place, do not shop through that particular retailer on the Internet.

These are just a few of the things that you can do to prevent becoming a victim of identity theft. However, the most important tip to remember is to simply practice common sense – both online and in the real world. Just keep your personal documents secure and practice safe shopping habits, and your identity will stay protected.

A smart safeguard that saves time and stress

Did you know that according to the FBI, more than 2 million home burglaries are reported every year? It’s not something we like to think about, but with statistics like that, you can’t ignore the possibility that it could one day happen in your neighborhood.

The first thing we recommend to policyholders is to invest in a home security system and develop a protocol of locking windows and doors, trimming bushes or other obstructions from window areas, and taking precautions when out of town. But we also recommend some measures to help “after the fact,” should a burglary occur.

One of those precautions is a home inventory. A home inventory itemizes all your belongings – from the high-ticket items like TVs and electronics to the more mundane, like bedding and knickknacks. A home inventory provides detail that makes the claims process simpler and more efficient and gives you peace of mind that any items that need repair or replacement per your coverage and limits will be executed fairly.

To do your own home inventory, first take photos or a video of every room in your house, opening drawers and closets and storage pieces to show contents. Make sure to capture manufacturers’ logos where you can, as well as the all-important serial numbers or style numbers.

The next step is to itemize these all in writing. List each item, its manufacturer, serial/style number, where you purchased it and when.

Now, take the photos or video and your list and keep copies in a fireproof safe and upload a copy to your computer. This will help ensure that it’s available if and when you need it.

Your inventory should be updated every year; the best time is right after the holidays, when you may have received a big-ticket item like a tablet device or piece of furniture.

Final note: some of the most frequently forgotten items on household inventories are the contents of refrigerators/freezers, pantries, garages, basements and attics. Make sure you capture these areas, because when it comes to replacement or repair, you want to make sure you’re not overlooking any of your belongings.

Depending on the size of your home, creating a home inventory takes less than an hour or two – time well spent to ensure a speedier, more efficient claims process from companies like Integrity Insurance. Why not do yours this weekend?

 4 PRACTICAL POLICIES FOR INSURING YOUR COLLEGE STUDENT

As summer winds down and the new school year approaches, it’s time for parents to say goodbye and send their sons and daughters off to college. Whether they’re leaving the nest as an incoming freshman or returning for their senior year, as they take on new challenges and experience life away from home, it’s hard NOT to worry about their wellbeing. After all, it’s in a parent’s nature! Rather than being a worrywart, however, Sandvik Insurance Agency offers several, practical insurance tips that can help you protect your son or daughter while they’re away at school.

1.) Make Sure Your Auto Policy is Up-to-Date

Whether your son or daughter intends to keep a car at school, it’s your responsibility to inform your agent whenever a car under your policy changes location. That way, you’re sure to be fully covered in case of an accident or theft. In addition, changing your location may cause a change in your rates, depending on whether or not the college is located in a high-risk area.

On the other hand, if your student is more than 100 miles away at school without a car, some carriers might offer a break on your insurance premium since the car isn’t being used. Regardless of whether your child brings a car with him or her, however, make sure you ask your agent about any good student discounts that might be available.

2.) Renters’ Policy vs. Replacement Cost Endorsement

One of the most frequently asked questions about insuring college students revolves around whether or not parents should buy renters’ insurance. Though your homeowner policy will give you 10% of your personal property coverage for items away from your home, if your child is living off-campus under a lease, a renters’ policy will cover all their belongings at current cash value in case of theft, fire, liability and more. If a renters’ policy isn’t your style, you might want to consider a replacement cost endorsement. Though most renters’ policies will only offer you money at a depreciated value, a replacement cost endorsement will offer you a replacement item of relatively similar value, instead of cash.

3.) Think Ahead with Life Insurance

Although your child might be in excellent health, there are several benefits of insuring them with a life insurance policy while they’re in college. First and foremost, in the case that something would happen to your child before they can pay off their student loans, proceeds from a life insurance policy can be put towards paying the balance of the loan. In addition, because your child is young and likely in better health, their term life insurance premiums will be lower. As time goes on and your child is ready to convert to a permanent policy, the new premium will be based on their health in college, regardless of how healthy they are now. For students in great health, this can be very valuable.

4.) Make a “Dorm Room Inventory”

If your child’s belongings are stolen or damaged while they’re away at school, a specific inventory will help with the claims process. Go through your items of value (e.g. laptop, iPad, TV, video game console, jewelry, etc.), take pictures and make sure you write down the item’s name, manufacturer, model/serial number, date purchased, and purchase price. This way, your insurance carrier will know exactly how to reimburse you. In addition, if the items are stolen, contact the police and file a report for theft. If not, it’s likely that your insurance carrier won’t cover your claim.

College is often considered the best years of our lives. As your children leave the nest to experience life on their own, don’t let something bad put a damper on years of good memories. For more information about protecting your child while they’re away at college, contact your local independent insurance agent today! 

Do you have a teenage driver (or one on the way)?  Back to school time is a great opportunity to think about car insurance savings!  

Having a teenage driver can be stressful.  You worry, first and foremost, about their safety and then about the costs.  And there are a lot of costs!  Things like purchasing an additional vehicle, getting licensed, and paying a little more for insurance.

Fortunately, you still have options.

First you want to think about the vehicle your teen will be driving.  Premiums are higher on vehicles with comprehensive and collision coverage.   This pays to fix your vehicle after an accident.  When you have a car that has only liability insurance (which pays only for damage your driver does to someone else’s car), you pay a lot less.

If you are purchasing a car for your teen and need to watch your budget, consider buying an older reliable model for cash that will not require comprehensive and collision coverage.  We can help you weigh the cost and the risk to see if it is a good option for you.