Professional Insurance Associates


Elias Melas - Insurance Agent

Homeowners /
Renters policies are very inexpensive!!!
Why should you purchase a policy for the apartment or house you are renting?
Homeowners insurance is one of the most common lines of insurance on the market today. There are two main areas of coverage in most typical policies. The first part covers your property. The second part covers personal liability, in example, guests while on your premises.

Anyone who owns or leases property has a need for this type of insurance. Homeowners insurance is required by most lenders as part of the requirement in obtaining a mortgage.

When it comes to the amount of insurance you need for your home, you need to have an understanding that you are only insuring the actual structure and not the land it sits on. For example, if you purchase a home for $400,000, it does not mean you need to purchase $400,000 of coverage for the home. Your coverage is based on the reconstruction cost of the structure since the land would still be there if the unfortunate happened.

Professional Insurance Associates uses two software packages to determine the replacement cost of your home mentioned below:
Homeowners Insurance
Why do you need it and how much coverage do you need?
*Location, what city is the home located in.
*Square Footage.
*Roof type.
*Design of home, custom vs. tract home.
*Foundations, the shape and soil conditions.
*Number of floors.
*Number of rooms.
*Number of Chimneys.
*Number of bathrooms.
*How many cars the garage will hold. etc.
Your landlord has an insurance policy that covers the building and protects the landlord against lawsuits arising from accidents on the property. What most people don’t know is that landlord insurance does not cover personal property of the tenant. Take a look around your place at all of the nice things you have. Most people have HDTV’s, BIG STEREO’s, LEATHER COUCHES, COMPUTER’s, etc. Then ask yourself, should the unexpected happen, do you have enough money to replace all of your EXPENSIVE contents?

There is also a personal liability exposure in your rented place. If anyone in your rented house or apartment gets hurt due to your own negligence, they have the right to sue you. For example, a poorly placed coffee table your friend trips on while visiting you. Landlords are liable for accidents on the property arising from their negligence, not yours. Landlords are also not liable for your personal property.

You first need to decide how much of your personal property you want to have covered in the event of a loss. You can choose any amount, but most renters choose somewhere between $10,000 and $50,000 coverage in personal property depending on how elaborate their belongings are. You may need a lower or higher amount depending on the value of your items. Then you need to decide if you want actual cash value or replacement cost coverage on your belongings should you need to file a claim.

If you want your policy to pay you the current value of the products, you will have actual cash value personal property coverage. This is the standard INCLUDED coverage as your personal property will depreciate in value over the years and your policy will only pay its current, depreciated value at the time of a loss. What I suggest is replacement cost personal property coverage which will fully replace your personal belongings. This will also slightly increase the cost of your annual premium, but I highly recommend this coverage and it is well worth it. For example, an HDTV would be fully covered and replaced with a current like model of the one you purchased. The standard actual cash value selection would only pay what the HDTV is currently worth at the time of a loss which could be 50% or less of what you originally paid for it.

Replacement cost coverage is usually less than a 10% increase on your premium to add it to your policy. Most agents will tell you that it is a disservice to sell you actual cash value personal property coverage and I completely agree.
Add a "floater" to your homeowners or renters policy for the best protection on your high end items!
Most insurance policies provide limited coverage for these and certain other items. My suggestion is to add a “floater” which schedules these high end items that are high theft on your homeowners or renters policy. For example, if the diamond on your wedding ring is chipped or lost, this would be fully covered without deductible. There is an additional charge for adding a “floater”, but typically the deductible is eliminated. Floaters require a current appraisal or sales invoice. If you have any of these or other high end items, I strongly suggest this coverage. Call or e-mail me for more information.
*Fine Art
Homeowners Policies generally include the following:

Coverage’s A and B cover the dwelling and other structures on the premises up to the policy limits.

The limit for Coverage A is set by the policy owner at the time of purchase. This is the amount the insurance company will pay to have your home or dwelling rebuilt in the event of a loss.

Coverage B - Usually equal to 10% of the policy limit on Coverage A.

Coverage C - Covers personal property and is equal to 50% of the limit on Coverage A.

Coverage D - Covers additional expenses the policy owner may incur when the dwelling can’t be used due to an insured loss. The limit for Coverage D equals to 20% of the limit on Coverage A. This covers extra costs to rent a hotel room, set up utilities, etc.

Coverage E - Personal Liability is determined by the policy owner at the time the policy is issued. Liability options are usually $100,000, $300,000, $500,000 and $1,000,000. Contact me to determine your liability exposure and to discuss your options further.

Coverage F - Medical Payments to Others has a standard of $1000 per injured person. This covers medical payments to others with no proof of gross negligence necessary.

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Don't get burned. Get Insured Today!!! 
A condominium insurance policy insures your personal liability and personal property contents similar to a renters policy.
Condominium associations insure the structure of your building, and the outside parts of your complex including common areas, on a master policy. This is usually included in your HOA fees.
Call or e-mail me for more information.
In addition, the policy also covers the interior of your unit and any structural improvements all of which are not insured by the association policy.
Condominium Insurance Basics