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Midpoint of Hurricane Season Arrives; Times is Right to do a Home Inventory |
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09/15/2008 |
I.I.I. INSURANCE NEWS
FROM: INSURANCE INFORMATION INSTITUTE
Florida Press Office - Lynne McChristian
(813) 480-6446
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www.iii.org
FOR IMMEDIATE RELEASE
MIDPOINT OF HURRICANE SEASON ARRIVES;
TIME IS RIGHT TO DO A HOME INVENTORY
Proper Insurance Coverage Helps Replace Possessions
TAMPA, September 11, 2008 - There are two events that can bring startling revelations about the scope of your possessions. One is relocating to a new residence; the other is suffering a major property loss, such as when a hurricane or tornado strikes your area.
As we enter the peak period for hurricane activity, it is time to take action. If your home and property suffer severe damage from Florida's unpredictable weather, an inventory of your possessions and their costs will get you back on your feet more quickly.
Most homeowner insurance policies provide coverage for your personal possessions up to approximately 50 percent to 70 percent of the amount of insurance you have on the structure of your home. For example, if you have $200,000 worth of coverage on your home's structure, you would have $100,000 to $140,000 worth of coverage for the home's contents, depending on the specific policy. For some people, that amount of coverage might be sufficient. But when you start adding up the cost of the big screen TV, an entertainment center, furnishings and high-end luxuries such as chinaware, you may opt for more coverage to make sure you can replace all of these possessions.
Taking the time to do a home inventory is the best way to determine how much insurance coverage you need for your personal possessions. It details what you own and the estimated costs to replace these items if they are stolen or destroyed by a disaster, making it easier to file an insurance claim. The Insurance Information Institute (I.I.I.) has a free software program to make it easy to get started on a home inventory. It is available for download at www.KnowYourStuff.org.
When it comes to storing your digital home inventory, there are many options: saving it on an internal or external hard drive; using an online storage solution; burning it onto a CD; or printing out a room-by-room document. Try to make multiple copies, and be sure to keep at least one copy of your inventory outside of your home with relatives, in a safety deposit box or in another secure location. The I.I.I. also provides an optional inventory storage service for a small annual fee: Secure Swiss Databank, also known as Vault 24(tm).
There are two choices to make when it comes to insuring personal possessions. Review the options to determine what type of coverage works best for your situation-actual cash value or replacement cost. "The difference between the two coverage options is that actual cash value accounts for depreciation, so if you've had an item for many years, you wouldn't get the full amount needed to replace it if it were beyond repair. Although replacement cost coverage costs just a bit more, you'll be reimbursed for the full amount needed to replace your belongings with comparable products," said Lynne McChristian, Florida representative for the I.I.I.
Keep in mind that there are liability limits for certain items, such as valuable jewelry, watches and furs. The standard homeowner insurance policy has a relatively low limit of liability for such items, generally about $1,500. You may want to increase coverage for precious items that would be difficult to replace by raising the limit of liability or by insuring these items individually, which is known as "scheduling" individual pieces. To schedule each valuable piece, the items must be professionally appraised.
For more information about insurance, go to the I.I.I. Web site at http://www.iii.org.
The I.I.I. is a nonprofit, communications organization supported by the insurance industry.
Insurance Information Institute
4775 E. Fowler Avenue
Tampa, FL 33617
(813) 675-1054
www.iii.org
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