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.
Kevin Sparks is a technical writer for Kaizen Software Solutions, the producer of Home Manager, a home inventory software program. For more information, visit their website at http://www.kzsoftware.com/products/homemanager
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