Insurance is an overlooked aspect of personal finance. You work hard so make sure your personal property is adequately insured.
Dollabuzz Shows You How To Insure Your Stuff
Dollabuzz readers what it is?! It feels goooood to be here! I am back in study mode for the next CPCU exam. This exam is scheduled for early November and I have not been able to post much. But for this post, I wanted to tie in what I am currently studying and answer the question of “how to insure my stuff.”
Dollabuzz is all about getting your money right and that includes protecting your stuff through insurance. A lot of people do not have adequate coverage and this is because insurance can be confusing and boring! As is the Dollabuzz way, we will explain in simple terms how to protect your stuff.
How To Insure My Stuff: Personal Property (Your Stuff)
Insurance geek speak is boring so let’s break it down the Dollabuzz way. Personal property (PP) applies to items you own or use, anywhere in the world. It can also cover the loss of, or damage to, PP of others while that property is at your crib.
How To Insure My Stuff: Homeowner
If you own your home, your stuff is insured under your homeowner’s policy, specifically under Coverage C. This coverage also covers the loss of, or damage to, PP of a guest while it is in any residence occupied by an insured. The amount that your stuff is covered for is 50% of what your home is insured for.
Under your homeowner’s policy, your stuff is insured on an actual cash value basis (ACV). ACV is simply what the property was worth right before the loss. If your couch was 10 years old and damaged in a fire, then your insurance company will pay you for what that 10-year-old couch is worth. What if you want a new couch? You will need replacement cost coverage.
How To Insure My Stuff: Personal Property Replacement Cost
If you want to replace your stuff with “new stuff” you will need to insure your stuff on a replacement cost basis. But keep in mind, certain things like antiques and collector’s items are ineligible for replacement cost coverage and therefore covered at actual cash value.
How To Insure My Stuff: Renter
If you are a renter your stuff is insured at the Coverage C limit you select which is based on the value of your stuff. As a renter, your stuff is insured on an ACV basis. However, you can upgrade to replacement cost just as you can under a homeowners policy.
How To Insure My Stuff: Jewelry and Other Valuable Items
Scheduled Personal Property Endorsement
If you have valuables like jewelry or cameras you will want that covered under a scheduled personal property endorsement. This is called a scheduled endorsement because there is literally a schedule listing what the PP is and how much it is insured for. This coverage applies on an agreed value basis instead of on an actual cash value or a replacement cost basis.
When property is covered on an agreed value basis, the insurer agrees to pay an agreed upon amount. To have your stuff insured on a “scheduled basis” you may need an appraisal to verify the value of your bling-bling.
How To Insure My Stuff: Side Hustle Insurance
Have a Ride Share Hustle? You Need a Commercial Auto Policy
Seems like side hustles (formerly known as part-time jobs) are a popular way to earn some extra cash money. If you drive for Uber/Lyft, deliver pizzas or drive a drunk bus your regular auto policy WILL NOT cover you and you NEED a commercial policy.
Side Hustle From Your Home? You Need Home Business Insurance Coverage (HBIC)
Side hustlin’ from the crib requires HBIC to insure against business property and general liability exposures. This is an endorsement to your current policy which is cheaper than purchasing a separate business owners policy.
This endorsement also allows the full Coverage C to apply to business personal property of others in the named insured’s care and to leased personal property. Your homeowners policy may not cover the home based side hustle.
In addition to protecting your stuff, HBIC adds coverage for liability coverage that results from your work or product. Liability coverage is critical because someone can simply allege YOU harmed them which will get expensive FAST. Thankfully, in addition to paying claims, insurance companies are required to defend claims at no cost to you. Money dance!
How To Insure My Stuff Recap and DollaBuzz TakeAWAY
Insurance is a great way to protect your stuff and Dollabuzz. We can’t cover everything but we want to familiarize you with some of the basic concepts and if you out here side hustlin’ you need to have adequate insurance.
A great way to make sure your coverage is airtight is to talk to a licensed insurance agent. If Flo and Shaq can’t answer your questions be sure to reach out to a licensed insurance agent. An insurance agent will ensure you have the coverage that is right for you.
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