Is It Enough?
You have insurance, but are you sure that you have proper and sufficient coverage? If you don’t have an annual insurance review, you could find – at one of the worst times of your life – that you’re under-insured.
Many insurance agents tell us that they contact their clients prior to the insurance renewal date and ask if they’d like to review their coverage. The majority of policyholders reply that there is no need for a review and request that they just renew the policy. Let’s take a minute to consider the need for a discussion with your agent.
Remodeling and room additions certainly are obvious needs for an insurance review. However, have you thought about items you have purchased or received as gifts that are of high-value? Do you own a collection and continually add to it? Did you just inherit some antique furniture, china, or artwork? These can indicate a need to review your current policy.
Are you properly insured?
Consider what could happen if you have a fire, weather disaster, theft, or other loss and then find out that you didn’t have coverage to receive sufficient funds for replacement. What a disappointment to learn you might have to withdraw funds from an investment account. Or possibly stop investing for a while during the time of your recovery. Of course, you could always use your credit cards to purchase the thousands of dollars worth of items you need to replace. None of these are a good option.
Even if you do have proper coverage, another issue is being able to prove the value of your furnishings (“normal” vs. “high-end”) or being able to remember everything you owned. While under stress, it is extremely difficult! Do you have the documents to prove your claim?
Having a home inventory will record your belongings, and can also identify the items that might need additional coverage. This information is valuable when you have your insurance review.
New year resolution – a home inventory
Many people set goals at the beginning of the year. Many also state that every December, a home inventory is still on their list of resolutions, while everything else has been completed.
Why? Because it’s a daunting task! You know it’s important, but it is soooo boring and time-consuming. Besides, you have better (more fun) things to do. One client said, “I started mine, and decided I’m just not going to do this myself.”
A thorough and accurate inventory will help you create or update what you currently have in the form of estate planning, financial planning, and insurance policies. If you don’t want to tackle the project of creating your inventory, we are happy to take care of that for you. Once completed, you can keep your records up to date, or check with us for the different types of services we offer to keep your information current.
Make it a great year – filled with peace of mind!