Disaster Strikes
With the recent storms here in the Midwest, it got me thinking - how do I get reimbursed for my personal property?
Whether you are an established family or just starting out at college, you probably have property that is covered under your home or renter's insurance. If a disaster such as a tornado or flood should occur, it is best you have an accurate and detailed inventory of your personal property with a property insurance inventory list.
Most homeowners policies cover contents for 50 percent to 75 percent of the amount of the insurance on your home, depending on the policy. If your home is insured for $200,000, your contents would be insured for $100,000 to $150,000, according to your policy stipulations.
Most standard homeowners policies offer limited coverage for certain types of high-value items, such as jewelry, silverware, coins, firearms, furs and watercraft. So, check your policy for these items and you can add additional coverage. The coverage for your policy is lower than you think. That boat that is sitting in your garage is only covered up to $1K under most home insurance policies.
An endorsement or rider adds more coverage to your homeowners policy for a specific peril or property. For example, you could buy an endorsement to increase the coverage for your silverware or jewelry to its full value and it would be covered for the same perils that are outlined in your homeowners policy.
A floater is a separate policy that provides all-risk coverage against anything not specifically excluded. The coverage "floats" with the item wherever it is located, except for circumstances specifically excluded in the policy.
Here are some tips on conducting an inventory of your personal property:
-Keep any sales receipts and attach to a personal property inventory list.
-Make a video inventory (or photograph) of your personal property to document your inventory list.
-List any serial numbers that may be on your personal property
-Keep your personal property inventory list, along with video and photos, in a safe place away from your home such as a safety deposit box.
A lot of people in the Midwest are paying their stupid tax right now by not having the right coverage on their home and possessions. Receiving personal budget training and getting off on the right foot will get you a good nights sleep, even during the tornado siren like me.
Labels: home insurance, renter insurance
Posted By: Joe on Tuesday, June 24, 2008
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