Documenting Your Home and its Contents for Insurance Purposes, p.2

On Wednesday, I wrote about the importance of document your home (inside and out) so that you have an inventory for insurance purposes in case of natural disaster or emergency. Here are more tips for documenting you home and its contents:

In addition to big ticket items, you may not even realize the amount of smaller items you have in your home collectively, they are quite valuable.

Here are some tips for photographing items in your home:

-Use the date stamp so you can demonstrate how recently the pictures were taken. You should update your photo inventory every five years.

-Take single pictures of high-priced items. Take close-ups to capture the make and model number of appliances.

-Take panoramic shots of rooms to capture all that they contain.

-Don't forget closets! You want clothes and other items to be taken into consideration when damages are calculated.

-Keep your photo inventory in a fireproof safe-deposit box that is not kept in your home. You can leave it with a relative or friend. Or you can keep it in a safe-deposit box at your bank.

Documenting Your Home and its Contents for Insurance Purposes, p. 1

Of course you'd rather not think about things like natural disasters or other emergencies that could hamper your ability to live in your home, but it is better to consider them when they have not occurred than to deal with them if they do.

One way to protect your assets is to photograph them. True, you may have receipts for big tickets items, but if for some reason you can't get to those receipts. you'll still want to have a record of what was in your home. Plus, the receipt may not tell the full story; information like the make and model number of an appliance, for instance may not be on a receipt. The more information you can give to your insurance adjuster, the better.

Besides photographing the contents of your home, you can also make a video of your home and of the home itself. This means that not only are you documenting what is inside, but you are also documenting how your home looks on the outside. Things on the outside like fences, gates, swings, gardens matter just as much as what is on the inside.

How to Lower Home Insurance Premiums

Premiums for homeowners insurance are rising, but there are ways you can cut down on this very necessary expense without sacrificing coverage. There are things you can do to get your insurer to trim away dollars from your premium.

Keep your credit in check
Many insurance companies use your credit score as a factor when they are calculating what they think you should pay. A good credit score will help keep your insurance costs down.

Bundle your insurance
Buying home and car insurance from the same company will save you money. Insurance companies will give you a discount because you are giving them more of your business.

Go for a higher deductible
Raising your deductible will bring the cost of your insurance down. Be sure to choose a deductible that you are comfortable with—don’t raise it so high for a lower premium that you live in dread of something happening to your home.

Home improvement
Some home improvements and upgrades can result in a lower premium. These improvements are ones that go beyond being cosmetic and actually make your home safer. For instance, updating the wiring means that your home has less risk of electrical fire. In addition to possibly lowering your the price of your home insurance, these kinds of alterations will also give you peace of mind.

Disasters May Not Be Covered By Your Homeowners' Insurance

It seems prophetic that the movie Evan Almighty opened in theaters this summer. This appears to be the year of the flood. Right now portions of the Midwest would make great location shots for Steve Carell's new movie. This week's severe storms seem to be one in a string of flood-makers that have deluged the nation, including Maryland. And hurricane season is just beginning!

Before disaster strikes, you should inspect your homeowners' insurance policy. After a flood or other disaster, many homeowners are shocked to find out they are not covered. Many homeowners assume that everything is covered by their homeowners' policy when, in fact, quite a number of disastrous events are not covered by standard policies. Often an additional rider or specialized insurance must be purchased. This is true of flood insurance which is available only from FEMA's National Flood Insurance Program, not your local home insurer.

"No policy covers everything," said Joel Brown, a State Auto vice president. Exclusions fall into three categories:

• Catastrophic events that are too big and expensive to insure, such as flood; nuclear, biological or chemical contamination; war or riots.
• Items that should be insured under a more suitable policy, like cars or businesses.
• Custom insurance that not everyone needs but that can be covered by purchasing a rider, such as sewer and drain backup, computer replacement, home-based businesses, antiques or jewelry.

It can be tough on your wallet if you take your insurance policy for granted. In the case of a flood or earthquake, you could "find out after the fact that your entire home has been damaged and you aren't covered," warned Peter McMurtrie, chief claims officer for Grange Insurance.

Your best policy? Review your insurance policies annually and don't forget to scan the fine print. Give your insurance agent a call if there's anything you don't understand.