How do you prove what you lost?

Can you remember everything you owned, where you got it and what it cost?  Those are some of the questions you'll need to answer if you want to take advantage of your insurance policy's Replacement Cost for your personal property.

After a loss, most insurance companies will give you a check that covers the Actual Cash Value (aka: depreciated value) of your personal property (couches, TV, clothes, etc...)  In order to get the full replacement cost you have to re-buy the stuff.  However, many companies want to have some idea of what was in your home before you replace an Ikea couch with something from Ethan Allen.

It's a good idea to take pictures of your home.  Get a snapshot or two of each room and then put the images somewhere safe OUTSIDE OF YOUR HOME.  It's a whole lot easier to prove what you had (and what you didn't, i.e. original Picasso) and it should only take you a matter of minutes.

Contact us for more good ideas that aren't that exciting, but really do make sense.

Wear and Tear Not Covered

Prior to entering the insurance industry, I thought insurance covered any and all claims resulting from a loss. Boy was I wrong!

I was scanning the internet this morning and came across the blog linked below by Ryan Hanley of New York. The blog discusses wear and tear not being covered under your Homeowners Policy. I recommend you all take a look at this post as it provides helpful insight on what perils are covered and provides a great example of wear and tear on property.

http://www.ryanhanley.com/2010/09/10/wear-and-tear-is-not-covered/

Have Some Valuables? Personal Articles Coverage

Here's a question that came into Personal Insurance Answers:

I'm a 25 year old girl who my family finds to be picky and tough to buy for. Therefore, my family has resorted to purchasing jewelry for Christmas and birthdays as an easier solution. They know I'll like it, which I always do!

I've accumulated quite a collection over the years. So how do I insure my jewelry properly? Is it insured on my Renters/ Homeowners Policy under contents? How do I place a value on my grandmother's jewelry, that, in my eyes, is irreplaceable?

Personal Insurance Answer(s):

Your Homeowners Policy can provide some coverage, but with deductibles and limitations. A Personal Articles Policy might be a better option because it can provide the additional coverage that may be needed. Besides jewelry, Personal Articles Policies can also cover furs, cameras, musical instruments, golf equipment, fine arts, collectibles, sports equipment, and computer equipment.  It can be written as part of a homeowners/renters policy or it can be written separately. All the details of that are here.

Needless to say, I purchased a Personal Articles Policy to cover my valuables and have recommended my friends to do the same!

4 Items to Consider Prior to Remodeling

As the housing market continues to struggle Americans are finding it difficult to sell their homes. Off hand, I know 3 individuals that have had their homes on the market for over a year and have not had any potential buyers! They've tried everything. Hiring real estate agents, professional cleaners, and finally, remodeling, my friends are feeling the pain of their hard earned cash escaping their pockets.

Sinking more money into the existing home in hopes of making their home more attractive to home buyers can be a great solution. Sometimes, however, remodeling is not the route to go. Here are 4 things you should consider before remodeling your home.

http://www.usatoday.com/money/economy/housing/2010-08-27-personalfinance27_ST_N.htm

Replacement cost increases? In this market?

There is a battle being waged everyday in the offices of independent agencies across the country over what is commonly known as "inflation protection".  The idea is that a personal homeowners policy will increase the replacement value of a home year-over-year to keep up with perpetually rising costs.

Then came 2007, 2008, 2009 and now 2010, when if you've picked up a newspaper, turned on a TV or listened to the radio you would have heard something about the housing market and it's not so sunny outlook. We'll lay out the reasoning behind both arguments and discuss how that effects homeowners insurance quotes, premiums and rates.

Replacement Cost vs. Market Value

In homeowners insurance there is a constant question between insured and carrier about the amount of insurance on a home.  Insurance carriers want to insure a home for its reconstruction cost, the actual price of materials and labor to rebuild the home.  The homeowner typically thinks of his home's value in terms of market value. And while there are certainly some commonalities between the two...they are separate concepts.  We'll explore the relationship between Replacement Cost vs. Market Value next...

Take Action! after a water loss

We get dozens of calls a year from people with water problems...water in the basement, sump pump failures, leaky roof, damp walls, etc.....  There are a few action steps that people should take immediately to minimize the damage.  We are going to detail some of the most important first steps on this blog that should help you and minimize your insurance loss.

Umbrella Insurance

I wanted to introduce the concept of an umbrella when it comes to insurance.  You may have heard of the term before, but not known what it meant or if it referred to the Travelers umbrella.

An umbrella is additional liability coverage that sits "over top" of your primary liability on your home or renters' and auto insurance. It usually comes in one-million dollar increments up to $5m. The point of an umbrella is to have more protection for current and future assets should there be a lawsuit against you.

Your primary auto and homeowners'/renters' policies have "Personal Liability" or primary liability limits anywhere from $100,000 to $1,000,000.  (We recommend nothing lower than $500k)  The umbrella would sit directly on top of that, effectively extending the amount of insurance available in case of a lawsuit.

The need for an umbrella typically rises as you have more assets to protect and greater ways to put them at risk (i.e. teenage drivers, boats, etc...), but it's always a good idea because the cost is not great compared to the protection given.  Lawsuits can lead to a judgement that will garnish future wages.  So even if you're just renting an apartment now and have one car, don't think for a second that's all you have to lose.  $200 now for a million dollar umbrella is worth it considering what you could lose down the road.

If you have questions please contact me for more information.

Protecting Against Water Damage

A lot of questions about water damage come into my mailbox, so I thought I would address a one of the most common. What is the difference between Flood and Sewer/Water Backup? One of them can be included in your policy and one has to be purchased separately.

After the jump we'll examine each one and let you know how to tailor your insurance policy to suit your needs.

What is my insurance actually covering?

Insurance policies are long...and detailed...and incredibly dry.  Remember some of your textbooks from school? Like that.  Your insurance agent is the best person to talk to about what is covered - and more importantly what isn't.

Here's a pretty comprehensive look at what is covered under most insurance policies and where many of them fall short from Forbes magazine. In the article they speak with an underwriter from MetLife Auto & Home, which is one of the carriers we represent at Gallagher.

http://bit.ly/9kpT4B

As always, contact me if you have more questions.