Is Your Personal Property Under-Insured?
If a disaster were to strike your home, would your insurance
policy cover the costs for replacing your home and personal
belongings? According to Marshall & Swift/Boeckh, a whopping 64%
of homes in America are under-insured. With the many recent
natural disasters, many people are finding out exactly how much
their insurance policy will cover. Unfortunately, some have
found out too late that their coverage is inadequate.
What can you do?
1) Take Responsibility First, recognize that protecting your
home and personal belongings is your responsibility. While your
insurance agent is there to help, it is ultimately up to you to
purchase adequate coverage.
2) Inventory your home and belongings Before you can make a
decision about how much insurance is right for your situation,
you must know how much your home and belongings are worth.
Here's where it helps to use a simple home
inventory software program to track the value of your home
plus all of your belongings. Look for one with a report which
you can print out listing your personal assets grouped by
category with subtotals.
3) Review and update your policy Now that you know how much and
what you're trying to protect, it's time to review and update
your policy. Compare the value of your actual belongings with
the coverage in your policy. Pay special attention to
limitations for specific categories of personal property, and
don't hesitate to call your agent for clarification. In fact,
now would be a good time to print out a copy of your home
inventory report, and schedule time with your agent to review
your policy and current status.