So it’s open enrollment season at healthcare.gov. You know it. You’ve probably gotten an email telling you about it. You may even be looking at plans on the exchange. But have you given any thought to your other coverage? Open enrollment for healthcare is a great chance to review all of your insurance and make sure that you have the coverage you need.
If you were to be injured on someone else’s property, you’d go to the hospital and use your health insurance. But then how would you get reimbursed for your deductible and copay? You were injured in someone else’s home, so you shouldn’t have to pay those, right?
That’s where their Renters Insurance comes into play. Not only will your health insurance look to their policy for reimbursement, but they’ll also help you try to get the negligent party’s policy to cover your copay and deductible and other associated expenses. Depending on the renters insurance coverage that they have, you might not be out-of-pocket at all.
On the other hand, if someone is injured on your premises and chose a high deductible during health insurance open enrollment, they’ll look to you and your policy to be reimbursed. What happens if you have insufficient coverage or no coverage at all? You’re on the hook for that money. You’ll owe them the money they had to pay to have the injuries treated.
Open enrollment isn’t just a time to think about health. It’s also a great reminder to make sure that all of your coverage is up to the level it should be.
During open enrollment, take a moment to think about how much personal property you have. Add it all up at the cost to go buy new property at retail. If that number exceeds your personal property limit, you’ve got a problem and need to increase the limit.
If you don’t have the maximum amount of liability coverage that your renters insurance provider offers, why not? Adding liability coverage is quite affordable, usually just a few dollars a year for a dramatic increase. Remember that this is what protects you if someone sues you – or if their health insurance company sues you – because you’re at fault for their injury.
Also remember that liability on your renters insurance is what allows you to have a defense paid for by the insurance company in that situation. They will pay for your lawyer, but only until the policy limits are exhausted. Once they’ve paid the policy limit in a claim, they’re no longer generally obligated to defend you. Additional liability coverage is always a good idea because of that scenario.
Is state minimum coverage enough? Probably not. You should think about more, for one simple reason: If you cause an accident, and the loss is in excess of your policy limits, you’re on the hook for the difference. If you have $15,000 of bodily injury liability and the medical bills are $100,000 for that person (not unlikely), you now owe the $85,000 difference.
Also consider whether it’s appropriate to keep physical damage coverage on older vehicles. What’s your deductible? What’s the actual cash value of the vehicle? Subtract the former from the latter. That’s the best case of what you’d get in a physical damage claim. Compare that to what you pay for the insurance to see if it’s worth having collision and comprehensive.
Health insurance open enrollment season is a great time to look at all of your insurance, and the insurance experts for renters at Effective Coverage are happy to help you make those choices. Just reach out at (800)892-4308 and speak with one, or you can get the fastest renters insurance online by clicking above. It’s fast and easy, either way.
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