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RISING WOMEN EXPERT
ADVICE...
Is your home insurance keeping up with
your home?
These days most of us are watching what we spend and major purchases are
often something we save for over a long period of time. That’s why it’s
becoming increasingly important to protect our assets - they’re tough to
replace.
One of the best ways to protect what you’ve worked hard for is to make
certain your home and personal property are adequately insured. While most
of us have home insurance, we tend to pay little attention to the details of
exactly what it covers and whether it’s enough. Some policies automatically
insure contents for a percentage of the building limit. For example, if your
building is insured for $120,000 and your policy allows for 75%, the
contents would be insured for $90,000.
This is where some people make a mistake. Ninety thousand dollars sounds
like a lot of coverage but when you do a quick inventory of your belongings
and add up what it would cost to replace them, you might be astounded at the
result. And $90,000 is often not enough.”
I suggest three ways to make sure you have enough coverage. First, add
replacement cost coverage to your policy. This ensures that your loss will
be paid based on current cost of replacing or repairing the item, without
any deduction for depreciation. It’s comforting to know that if your ten
year old bedroom suite is destroyed, you’ll get enough money to replace it
new, rather than simply the amount it’s worth today.
Second, allow your agent to inspect your property and review your policy to
see if there are any limits on items like jewellery, furs, or coin
collections. For example, the limit on jewellery can range from $1,000 to
$10,000 depending on your policy. Since these items may be worth more than
your policy’s limit, it’s advisable to insure them separately, based on
their appraised value.
Third, to help determine how much personal property coverage you need and to
help provide proof of ownership in the event of a claim, take stock of the
contents of your home. It’s important to update this inventory on a regular
basis. It is wise to leave it in a safety deposit box so that if your home
is damaged or destroyed, your records won’t be destroyed along with your
other things. The key with any type of insurance protection is to identify
your needs and with our help, design a policy to meet those needs.
Danielle Miller |
