December 12, 2008
By Judy McKenna, Ph.D., CFP
Re-printed with Permission
Many of us contributed funds to help those who suffered great loss from hurricane Katrina. We may not be thinking, however, about taking care of ourselves in the event a disaster would strike where we live. Yet, Katrina should be a wake-up call to us to take stock of what we have to help us recover from devastating and unexpected occurrences.
The most important step you can take is to make a complete inventory of what you have. Give a copy of your inventory to a family member or friend who lives in another geographical area. Your inventory list should include item and description, make and model, and when purchased. For example, 27″ color television, Sony, serial number 02387,purchased in 2001.
Take photos of special and expensive items and videotape each room. More complete guidelines for completing an inventory can be found at the Rocky Mountain Insurance Information Association non-profit Web site: www.rmiia.org. The RMIIA site also connects you to the Insurance Information Institute’s site, which has free software for documenting your possessions. This inventory will support your claims in the event of a flood, fire, tornado, other natural disasters, and theft.
Did you realize that your homeowner’s insurance does not protect you against damage from floods? Flood insurance was established by the federal government in 1968. The program is administered by the Federal Insurance Administration (FIA). The flood insurance program is totally self-supported. All dollars paid by the flood insurance program come from policyholder premiums.
In order for you to buy flood insurance, your community must be accepted into the flood program. Residents, both homeowners and renters,in qualified communities can purchase flood insurance from any licensed insurance agent who is writing flood insurance under arrangements with the FIA in the United States.
All premiums, policy wording, and rules are the same nationwide. With one exception, flood insurance does not provide replacement cost coverage on lost property. This means that at the time of loss, the value of the property or item will be its current replacement cost, minus a certain amount for depreciation. And here’s a surprise: No contents stored in a basement are covered by flood insurance. If you decide this is a good time to shop for homeowner’s insurance coverage, be sure you are comparing similar policies. Ask how much the deductible is, which perils are covered, how much liability insurance is included, and if the coverage is for replacement cost value.
Ask if you are eligible for any discounts. Even if you don’t switch insurers, consider increasing your deductible to $1,000 so that you are not filing small claims. If you file small claims, your insurance premiums are likely to be increased, and your insurance company may cancel your insurance all together.
Prepare For Emergencies
December 12, 2008
By Judy McKenna, Ph.D., CFP
Re-printed with Permission
Many of us contributed funds to help those who suffered great loss from hurricane Katrina. We may not be thinking, however, about taking care of ourselves in the event a disaster would strike where we live. Yet, Katrina should be a wake-up call to us to take stock of what we have to help us recover from devastating and unexpected occurrences.
The most important step you can take is to make a complete inventory of what you have. Give a copy of your inventory to a family member or friend who lives in another geographical area. Your inventory list should include item and description, make and model, and when purchased. For example, 27″ color television, Sony, serial number 02387,purchased in 2001.
Take photos of special and expensive items and videotape each room. More complete guidelines for completing an inventory can be found at the Rocky Mountain Insurance Information Association non-profit Web site: www.rmiia.org. The RMIIA site also connects you to the Insurance Information Institute’s site, which has free software for documenting your possessions. This inventory will support your claims in the event of a flood, fire, tornado, other natural disasters, and theft.
Did you realize that your homeowner’s insurance does not protect you against damage from floods? Flood insurance was established by the federal government in 1968. The program is administered by the Federal Insurance Administration (FIA). The flood insurance program is totally self-supported. All dollars paid by the flood insurance program come from policyholder premiums.
In order for you to buy flood insurance, your community must be accepted into the flood program. Residents, both homeowners and renters,in qualified communities can purchase flood insurance from any licensed insurance agent who is writing flood insurance under arrangements with the FIA in the United States.
All premiums, policy wording, and rules are the same nationwide. With one exception, flood insurance does not provide replacement cost coverage on lost property. This means that at the time of loss, the value of the property or item will be its current replacement cost, minus a certain amount for depreciation. And here’s a surprise: No contents stored in a basement are covered by flood insurance. If you decide this is a good time to shop for homeowner’s insurance coverage, be sure you are comparing similar policies. Ask how much the deductible is, which perils are covered, how much liability insurance is included, and if the coverage is for replacement cost value.
Ask if you are eligible for any discounts. Even if you don’t switch insurers, consider increasing your deductible to $1,000 so that you are not filing small claims. If you file small claims, your insurance premiums are likely to be increased, and your insurance company may cancel your insurance all together.