Entry bubble Do You Have Enough Insurance?

By: Nancy | June 19, 2008 | Category: Money

Two weeks ago, my neighborhood was torn up by an "unconfirmed" tornado. Roofs ripped off. Trees through homes. I got off easy, only losing power for three days and having to chuck most of the food in my fridge. But my neighbor two houses down also lost her deck, her new fence and the front of her car when a huge oak tree took them out—along with all the power lines. fallen tree

Two days ago, the back of my car was torn up in a parking lot by a very contrite lady who got her brake and gas pedal mixed up. My poor old car's bumper is smashed and hanging. The liftgate is dented. And I had to secure the tailpipe with a wire hanger to keep it from dragging. Again, I got off easy; the other car has a crushed hood, fender and headlight and a jammed-shut driver's side door.crushed bumper

The most important thing is that nobody got hurt in either event. People are infinitely more important than "stuff." But times like these are good reminders to review the insurance policies that protect your “stuff” and ask yourself some questions.

Does your homeowner’s policy cover the current cost of rebuilding your home? If your house is a total loss, will your insurance pay for complete rebuilding or only give you a limited amount of money toward it? Find out from a local realtor or builder how much rebuilding your home would cost and make sure your insurance coverage is in line with that estimate.

How about what’s inside? Your premium will be less if you're insured for only the depreciated value of your possessions. But then you'll have to make up the difference yourself when you shop for replacements. Consider getting insured for the full replacement value of what you own and be sure to keep your home inventory up-to-date.

What about flooding? Most homeowner’s policies don’t cover it, as so many people in the Midwest and South are tragically finding out. Consider separate coverage from the National Flood Insurance Program.

How high should your car insurance deductibles be? The higher your deductible on things like collision or comprehensive coverage, the more you save on premiums, but the more you'll have to pay out of pocket for repairs before insurance kicks in. How much coverage you want to get also depends on you car’s age, condition and value.

I’m glad the lady who crashed into my car was covered. Her insurance is paying for everything, including the rental car that will be waiting for me next week at the body shop when I take my baby in for a new bumper.

What have been some of your more memorable insurance claim stories?

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Entry bubble Prepare a Home Inventory – Now!

By: Sommer | January 04, 2008 | Category: Home and Family

Now is the perfect time to prepare a home inventory. It can help you when planning for replacement of furnishings and equipment, purchasing insurance, filing insurance claims, determining your net worth, planning your estate, and more.Living Room

If, like me, you’ve never created a home inventory it sounds like a pretty overwhelming task, doesn’t it? There’s good news – you’ll only have to do it once! In the future, you’ll just have to update your inventory when you purchase new and discard old possessions. If you’d rather hire someone to do an inventory for you, the National Association of Home Inventory Professionals can help you find a professional.

So, where to start?  You can take several different approaches to the inventory like going room-by-room, categorizing your possessions (electronics, furniture, appliances, etc.), newest to oldest, or most to least expensive.  Next, choose the method you’ll use to record all the information.  A simple notebook will suffice, or, you can download a worksheet, take photos, make a video, or even use a computer program.

Regardless of which method you choose, record information such as brand or manufacturer, date purchased, serial number, purchase price, and estimated replacement value.  You can also check with your insurance company to see what information they'll need about your property in the event you have to file a claim.  If you’re a receipt saver like me, now’s the time they’ll come in handy.

Record information about the following items:

  • furniture, carpets, and drapes
  • antiques, artwork and collectibles
  • appliances
  • clothing and other closet contents
  • computer equipment and electronics
  • musical instruments
  • sports equipment
  • garage, attic, and tool shed contents
  • toys, books, and CDs
  • silver and china
  • jewelry and any other valuable items

Once you’ve completed the inventory, keep it in a safe place like a safety deposit box or a fireproof box.  It's a good idea to make a couple copies of the inventory and keep them in different locations. 

Post your stories about how having a home inventory (or not having one) affected your life.  They’ll help light a fire under me (and maybe others) to get one done!

| Comments [7] | envelope Email This Entry | Tags: disaster   emergency   home   insurance   inventory   property   sommer