Protecting Assets

Did you know that…

• On average it takes at least 18-24 months to repair/rebuild/replace a home and possessions after a large loss.
• Homeowners and renter’s insurance policies typically exclude flood damage, so a separate policy is needed.
• A landlord’s insurance policy does not cover the costs of moving, cleaning or replacing a renter’s property after a disaster.
• An estimated 25 percent of businesses do not reopen following a major disaster.

Insurance

Purchase enough insurance to replace property at full value and protect against local risks, such as floods or hurricanes.   Strongly consider an “All Risks” policy, not a “Named Perils” policy, with Guaranteed or Extended Replacement Cost protection.  Buy the most “extended replacement cost” protection that you can afford — it comes in handy if you suffer a large loss and it turns out your basic policy isn’t enough to cover it.  Buy Actual Cash Value coverage only if you have no other choice.

Ask your agent about exclusions — you may need to purchase a separate policy, such as flood insurance, for certain risks to get the coverage you need.  Standard homeowner’s policies typically cover your home’s contents, loss of use, landscaping, and trees/shrubs. Depending on the value of your collections, such as jewelry and art, it may be wise to purchase special, extra coverage.

Comparison shop on price and quality.  Get price quotes from at least three different companies, but make sure you’re comparing similar policies as to what is covered and excluded.

Renter’s Insurance

A landlord’s insurance protects the landlord’s property. Renters need their own renter’s insurance policy to protect their possessions. Similar to homeowner’s insurance, renter’s insurance policies typically exclude flood damage.  A separate flood insurance policy can be secured through the National Flood Insurance Program.

Inventory Posessions

• Make a home inventory of your personal property. Anyone with a pre-loss inventory has a huge advantage in the recovery process.  Your insurance provider should be able to provide you with a sample inventory to use.
• After a total loss from flood or fire, preparing an inventory for insurance and taxes is a long and difficult process. It’s impossible to remember all of your possessions, so most families are not able to collect on their full insurance benefits.
• Create a record of the items in your home, yard, garage. Include furnishings, appliances, electronics, technology, clothing, jewelry, tools, recreational items, etc.  Record the model and serial numbers of items.
• Update your inventory as you acquire new items, remove items you no longer have. Retain or upload sales receipts.
• Photograph or video the inside and outside of your home and save in online storage or on a flash drive.
• Store your inventory in a secure place away from your home, such as your office, or a safe deposit box. Or, email your inventory to a trusted relative/friend and ask them to save it for you.