05. Property/Casualty Insurance Coverage

Years of careful accumulation for retirement can be wiped out by a casualty loss, and you should periodically review all coverage's for adequacy for provisions and amounts of protection.

Inflation steadily increases the value of homes. If coverage is less than 80% of the value, claims will not be paid in full.

Your contents coverage schedule usually needs to be increased regularly, and you may need a special article policy or rider for full protection on items such as jewelry, antiques or collections. Appraisals should be updated periodically. There should be an inventory of furniture and personal possessions, and taking snapshots showing these items in your home is a good idea. The list and photos should be kept in a safe deposit box or with your agent.

Remember the last article you read about a lawsuit as a result of an accident? The amount was well over $100,000, wasn't it? What might be the damages if a loaded truck was overturned? We consider $100,000/300,000 25,000 as minimum adequate coverage, and it is inexpensive to obtain even higher limits.

Your "financial visibility" increases your liability exposure. The more successful you become, the more this becomes apparent through automobiles, residence, business and property holdings. Stated simply, "The more you've got, the more you'll be sued for!"

It is wise to obtain a liability umbrella policy or rider on your homeowner policy that increases your basic protection to one or two million dollars. Rates are based on occupation and existing coverage's, but may run about $100 yearly. This also covers libel and slander - important exposures frequently uncovered.

Increasing deductibles can pay for higher limits of protection, since it's not the small claim that really hurts. You should convey all of your circumstances to your agent and get quotations for various amounts and types of coverage.

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