2017 Insurance Resolutions - Part 2

Verify the dwelling coverage limit is adequate. Homeowners insurance is based on replacement cost. Replacement cost means how much it costs to rebuild with materials of like kind and quality, without subtracting for age or wear and tear. Notify your insurance representative about home improvements. You will likely need to bump up the dwelling coverage limit if you add a room, build a deck, or upgrade the kitchen or bathroom It's best to match the dwelling coverage limit with the home's replacement cost. Insuring for less than this figure could result in a reduced claim settlement.

Create a personal property inventory. Make a room-by-room list of your belongings. Include brand names, model information, serial numbers, and receipts. Photographs, videos, and value appraisals are also helpful. A home inventory is important for two reasons. First, knowing what you have will help you secure adequate insurance protection on your belongings. Second, the inventory will help you provide proof of lost or damaged items when making a claim. A variety of businesses, record keeping products, and web based applications are available to guide you through the inventory process. Keep the inventory in a safe deposit box or other fireproof, waterproof, secure location.

Confirm personal belongings are properly insured. Homeowners insurance covers contents for specific types of losses on a depreciated basis. Most policies have caps that restrict loss settlement for belongings like jewelry, furs, coins, computers, antiques, artwork, silverware, and more. Insurers offer a variety of endorsements that tailor policies for individual needs. For example, a personal property floater offers additional protection on high value items. Add-ons are also available to provide contents replacement cost coverage, insure business equipment, and more.