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You never know when a major catastrophe may strike your community. To make sure that as a homeowner you are properly insured for a catastrophic loss and to increase the chances that you are promptly and appropriately reimbursed so that you can financially recover quickly, General Casualty offers the following advice:

1. Make sure your home and possessions are insured to full value. Without enough insurance for a catastrophic disaster, a family can be left without sufficient resources to rebuild or owing large sums on mortgages or loans. Many homeowners policies only guarantee replacement up to a certain stated home value as specified on the policy, plus a cushion of up to 25 percent, so it’s important to make sure your home is accurately valued. In addition, standard coverage for your belongings is usually a percentage of the home value, typically between 50 and 80 percent. Other deluxe policies offer guaranteed replacement cost for your home and higher limits for contents coverage if you’re willing to pay more.
    
2. Review policy limits annually. Meet with your insurance agent to go over the limits on your home, contents and specific items that may need extra coverage to make sure you maintain adequate coverage. The values of your home and possessions increase over time. Some policies automatically adjust for standard inflation increases, but if you’ve remodeled your home or made any sizeable purchases lately, such as a new home entertainment system, furniture, antiques or jewelry, the value of your possessions might exceed those increases.
    
3. Consider extra coverage for specific items. If you own or collect high-value items, such as jewelry, electronics, furs or specialty collections, consider adding specialty coverage endorsements that specifically insure these items. The endorsement will include an exact description of these items and guarantees full replacement coverage for many causes of loss, including losing or misplacing items. As a result, you can help guarantee that your precious items will be replaced with “like kind and quality.”
    
4. Create a detailed inventory of your belongings. List and assess the value of your possessions and help ensure a faster recovery in a disaster, including videotaping the items. Include information about when they were purchased and what you paid or feel they’re valued at. Open drawers and cabinets when going through your home to better document the type and amount of items you have, like the quantity and variety of clothes and the quality of housewares you own. Save receipts from high-value items and keep them with your list as well. You can also download free home inventory software from the Insurance Information Institute at www.iii.org.
   
   Keep a copy of the inventory list and video at another location outside your home, such as in a safe-deposit box or filed with your insurance agent to ensure the list isn’t lost if something happens to your home. Update this list regularly or when you make a large purchase.
    
5. Think about the little things. When comparing policies, consider the coverage for debris removal (which can often be hefty after a fire, tornado or hurricane) and landscaping after the repairs are complete. Keep in mind that homeowner policies typically don’t cover trees, as there’s really no way to replace that 100-year-old oak tree. Also, if your home is uninhabitable during reconstruction or repair, you’ll have to live elsewhere. Typically, an insurance policy will allow for this “additional living expense” up to 20 percent of the coverage on the dwelling. Some policies are more generous, while others give you the option of increasing this amount for an additional premium.
    
6. Choose your insurer carefully. Different companies have different types of policies, with different coverage extensions or expanded limits that may fit your needs better. Keep in mind that more coverage will typically cost more. In addition, some companies approach the claims settlement process differently than others. Some may not care to quibble over small stuff and may simply write you a check for the entire policy limits on the spot, should your home be a total loss. Others may want you to list all of your lost possessions and subtract what you are able to salvage before they settle your claims. So, while you should always shop around carefully, it’s wise to make sure that the cost of your policy isn’t the only determining factor in your choice of insurance.
    
7. Get to know your agent. Developing an ongoing relationship with your insurance agent can help ensure that he or she can best advise you on a policy that’s right for your needs and can take the time to find out about new circumstances in your life that may change your insurance needs. And an independent insurance agent, who sells insurance for multiple companies, can advise you on differences between insurers and which one can best provide the level of service and attention that’s right for you.

For more information, please contact Anne M. Smith.