If your home were wiped out, could you prove how much any lost, stolen, or destroyed belongings are worth? Just 42% of us have an inventory of our home's contents, according to the Insurance Research Council. Itemizing your assets gives you a running head start if disaster strikes. The Insurance Information Institute's free home inventory software at knowyourstuff.org can help you catalog your possessions room by room and attach photographs and scanned receipts (don't forget the stuff in the garage, basement, and attic).
Fill in the gaps
Note whether you have "cash value" (based on depreciation) or "replacement cost" coverage and consider that most policies cap payouts at 50% of the home's total coverage. "Extended replacement cost" coverage (which pays out about 20% more than a standard policy) and riders for valuables provide a bigger safety net for your belongings.
Keep up appearances
Today's insurers are skittish. Just asking about filing a claim can put your insurability at risk. Avoid the chopping block by paying for claims of $1,000 or less out of pocket, upping your deductible, and buying your home and auto coverage from the same carrier. If insurability is an issue, ask if a few fixes (e.g., replacing a leaky roof or old boiler) will help.
Your premiums and eligibility are based on the five-year claims history in your home and auto insurance files.
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