Most people think that insurance is something that you can purchase and forget about, but that is not entirely true. Your insurance policies are what protect you and your family from uncertainty and financial pitfalls. They are an important part of your life, and as such, they occasionally require some maintenance.
There are two very important tasks that you should perform annually to make sure that your home insurance policy is always in tip-top shape: perform a home inventory, and review your coverage with your insurance agent.
If you subscribe to our blog, you already know the importance of keeping a home inventory. This document or spreadsheet serves as the official record of your possessions. Once you have your inventory set up, it is easy to review and update it every year. If you ever need to make an insurance claim, this document will make it quick and easy to report your losses to your insurance provider.
The second piece of housekeeping that needs to be done every year is a chat with your insurance agent. Your agent will review your current policy, making sure that you still have all the coverage you require. This is also a good time to tell your agent about any large purchases or renovations that you have made so that they can be noted in your policy.
Taking a few minutes every year to do these simple tasks is the only way to ensure that your insurance policy stays current, and skipping these steps could be disastrous.
Take, for example, this story from NBC 7 of San Diego: Dieter Merkle was evacuated from his home due to an approaching wildfire, but it wasn’t until after the fire was put out that his true debacle started. Merkle spent a year rebuilding his home and replacing his lost possessions.
What he didn’t realize before the fire burned down his home was that his insurance policy wasn’t sufficient – and it didn’t cover all of his losses. His art collection, along with all of his books, weren’t protected, and he wasn’t able to receive an insurance payout to replace them. The only reason that he was able to replace his grand piano was because a relative had a photograph in which you could see the instrument.
Much of Mr. Merkle’s stress could have easily been avoided if he had performed his yearly insurance maintenance. He was able to recover the money for his piano because of a photo. If he had taken the time to complete a home inventory before the fire, he may have been able to recoup money for more of his lost possessions.
Furthermore, if he had allowed an insurance agent to review his home insurance policy, it would have been clearly evident that his home did not have sufficient coverage. A few minutes of his time could have ensured that he had the protection he needed to replace both his books and his art collection.
Don’t allow the same thing to happen to you: call 877-550-0025 and review your home insurance policy with a Vargas and Vargas Insurance representative. We can answer all of your questions about home inventory, and we’ll help you make sure that your home and all of your possessions are fully covered in case of a disaster.
Photo credit: photosteve101 / Foter.com / CC BY
