personal insurance

Insurance for renters, homeowners, and businesses can be a big help when faced with disaster damages.

If you own a home

• Buy, at a minimum, full replacement or replacement cost coverage. This means the structure can be replaced up to the limits specified in the policy.
• Investigate buying a guaranteed replacement cost policy. When and where available, these policies can pay to rebuild your house, including improvements, at today's prices, regardless of the limits of the policy.
• Have your home periodically reappraised to be sure the policy reflects the real replacement cost.
• Update the policy to include any home improvements, such as basement refinishing. Annual automatic increases may not be enough to cover these.
• Buy a policy that covers the replacement cost of your possessions. Standard coverage only pays for the actual cash value (replacement cost discounted for age or use).
• Be very clear about what the policy will and will not cover, and how the deductibles work (the part you pay before the policy pays).

If you rent

• If you are renting, consider locating outside a high risk flood area or away from a fault line.
• Buy renter's insurance, which pays for damaged, destroyed, or stolen personal property. Your landlord's insurance won't cover damage to or loss of your possessions. Also, consider special coverage like flood insurance for your belongings.
• Be clear about what a policy will cover. Some policies cover more than others. For example, will the policy pay for living expenses if you have to live somewhere else temporarily, or for damage from sewer backup?
• Comparison shop for the best coverage at the best price. Other than government flood insurance, policies vary from company to company. Policies in most areas are very affordable. Start with the company that insures your car. Discounts are often available if you carry more than one policy with a company.

Special coverage

Insurance for renters and homeowners won't cover certain types of losses. Ask your insurance agent or financial planner about special or additional coverage for the following:

• Floods—Homeowner policies don't cover damage from flooding. Call your current insurance company or agent first about getting coverage. If your company doesn't provide flood insurance, call the National Flood Insurance Program at (800) 427-4661, which can provide you with the name of an agent in your area who writes flood insurance.
• Home Offices—Some policies automatically extend coverage to computer equipment and a few other items of business property. Talk to your agent to determine what items would or would not be covered.
• Building codes—Ask your agent about additional insurance to cover the costs of meeting new, stricter building codes. Frequently, after a disaster people get socked with rebuilding costs that are much higher because building codes have changed. All current codes must be met when rebuilding. Consider additional structural improvements that provide more protection.
• Big-ticket items—Purchase additional coverage for specific jewelry, collectibles, artwork, furs or other big-ticket items.

Contact
For additional information regarding the Recovery Program, please contact us for your area of interest.