Protecting Personal Property
When it comes to house insurance, just how much is enough? If you were to lose the contents of your home, would insurance cover the cost to replace them? Many people aren't sure because they aren't insurance experts. It will help you to record your belongings so that you can determine how much insurance you will need.
Hopefully you'll never have to make a claim where you need to replace all of your property, but it is far better to be prepared, even if it is just for your peace of mind.
The best protection is the amount of insurance you have on your personal property should equal the value of the items you own. If you were to lose the contents of your home, the price you originally paid, or their present value, would be considerably less than the actual replacement cost.
To assist you in making sure your property is properly listed, you can get an inventory list from your broker, then you tour your house and list all your valuables. Keeping your receipts from purchases, and video taping your rooms is very helpful. Keep the inventory form and video in a safe place away from your home. A safety deposit box is ideal. After your inventory is done this should give you a true picture of your property and what you will need for coverage.
Burglar-Proof Your Home
MOST HOME BURGLARIES ARE PREVENTABLE IF YOU KNOW HOW TO PROTECT YOUR HOME!!!!
More than a million homes are broken into each year, yet 9 out of 10 of these could have been prevented. A little knowledge goes a long ways if you take the time to burglar-proof your home.
Light, time and noise are your greatest weapons in the fight to prevent a home burglary. A burglar will think twice about breaking into your home they have to manoeuver in a well lit yard and if you make it both time-consuming and noisy to get into your home.
HERE ARE SOME SUGGESTIONS FOR YOU:
1. "CASE" your home the way a burglar might and look for easy ways to enter your home. Check to see if valuables and expensive items are visible from the street. If you can see your valuables from the street so can the criminal mind.
2. Keep your home well lit. Mount exterior lights out of reach, in your yard and on your home. If you are going out for the evening, leave some lights on inside and maybe even the T.V.
3. Discourage burglars by making it time consuming to break into your home. Simple security devices such as: grates, bars to block your windows and patio doors, dead-bolts, and alarm systems will make a burglar think twice about breaking into your home.
4. By installing an alarm system, you would make it very noisy to enter your home therefore this being your number one deterrent for burglars. The most effective ones are the systems that will ring at an outside service, who will then contact the police.
5. Your exterior doors should be very strong. Metal or solid hardwood at least 1 3/4 inches thick are the best to have. Ensure the frames are made of strong material and fit its frame snuggly. It's fairly pointless to put the best dead-bolt in your door if the door is weak.
6. When you have improved the security of your home do not exchange security secrets with others. Also, keep in mind, do not make your home such a fortress that you will not be able to escape in case of a fire or other emergency.
Frequently Asked Questions (FAQ)
Doesn't my mortgage company insure my house?
No. The confusion may come from the fact that many mortgagees require you to have homeowner insurance as a way of protecting their investment. Everything about the insurance policy on your home is your responsibility. From the company you choose, to the types of coverage you select.
My house is worth $150,000 according to my tax bill, but my policy is for only $100,000. Am I underinsured?
Many people confuse the market value of real estate with insured value. Don't forget, the market value of your house includes the land it is on as well as a lot of intangibles, like the school system or character of the neighborhood. The insured value, on the other hand, is based on replacement cost-what would it cost to rebuild your home if it were damaged or destroyed. Of course, replacement costs do go up over time, as labor rates and material costs go up. So it is a good idea to check every few years on current replacement costs of your home. Check to see if you have the replacement cost guarantee and inflation protection on your insurance policy.
If a tree falls in my yard, will my insurance pay for its removal?
Most policies will pay for debris removal, if there is damage to your house. So if a tree lands on your house or falls near enough to break a windo or crush a gutter, your homowner policy should cover the cost of cleaning up as well as making the necessary repairs, subject to deductables and limits.
I do not own a home, so why do I need homeowner insurance?
Actually the name of your insurance policy is called Tenant insurance. This policy offers three kinds of protection that everyone needs.
The first, personal property, insures the things you do own- your furniture, stereo, VCR, jewellry, clothing, sports equipment-all the items you would want to replace if they stolen or destroyed.
You certainly do not have to own a house to realize the value of the second portion of tenant insurance. If you were ever sued for causing injury or loss to someone, Liability coverage will pay your legal expense, no matter what the outcome of the suit is. It will also pay medical payments and property damages awarded if you are found legally at fault, up to the policy limits specified on your policy. Most tenants are not aware of the fact, that the landlord's insurance company, have the "right to recover" from the person that causes damage to the building they insure. So if you are renting from someone and accidently cause a kitchen fire. All the damages to the building that the insurance pay for, could result in them requesting payment from you.
The liability part of your tenant policy would respond to this request.
The third coverage, called Additional Living Expense, will pay the cost of your temporary living situation if you have to move out of your home because of a peril covered by the policy, such as a fire.
What is not considered personal property under a homeowner policy?
Somethings are excluded because they can be better protected by another type of policy. Some exclusions are:
your pets & livestock
any radios, CD players,tape decks that are in a vehicle
aircraft
vehicles
anything you own that is rented to someone else.
Are there any other exclusions I should know about?
Yes. You might not realize that there are some events, besides floods & earthquakes, that you can not expect your policy to take care of. For example, most policies will not reimburse you for damage or loss that is a result of:
Your failure totake steps to save and preserve property after a loss.
The enforcement of a local ordinance-for instance, one that foreces you to tear down an addition or repair a rotten porch.
a war or nuclear peril
Naturally, you will not receive reimbursement fo a loss that is clearly intentional or due to lack of maintenance or ordinary wear and tear.
How is "actual cash value" different than "replacement value"?
Actual cash value is what an item is worth, at the time of loss. it takes into consideration, age, condition and general depreciation. Replacement Value is waht is actually costs to replace an item with a new one of equal quality at the time of loss.
Information in part from Electric Insurance Company.
Preparing for a Major Earthquake
Seismic experts say that British Columbia can expect a major destructive earthquake to occur in our future at any time. Since they can not predict when it will happen, it would make good sense to be prepared for when it does happen.
Being prepared now could save your life and your familyÕs life. Develop an emergency plan and practice what to do during and after an earthquake. Plan your needs, delegate tasks, and know the safest and the most dangerous places in your home.
SAFE: under heavy tables or desks, inside hallways, corners of rooms or archways.
DANGEROUS: near windows or mirrors, under any objects that can fall, the kitchenÑwhere the stove, refrigerator or the contents of cupboards may move violently, doorwaysÑbecause the shaking may slam the door on you.
Train your family to use fire extinguishers. Learn a first aid course including CPR. Check your insurance package, do you have earthquake insurance?
Talk with your children about what to do if they are at home, school and if the quake separates your family. Does your childÕs school have an earthquake plan? Arrange an out-of-area contact. Each member of your family should carry the numbers with them. Have an alternative meeting place if the family canÕt get home.
Make sure the members of your family know how to shut off the utilitiesÑgas, electricity and water.
Your plan should also include a list of emergency supplies and equipment and where they are stored.
EMERGENCY SUPPLIES:
Be prepared to be on your own for 72 hours or moreÑat home, in your car, at work. Assemble these supplies and keep then in your emergency kit.
- A first aid kit and instruction book
- Shelter -- a plastic tarp, a small tent, blankets
- Water -- at least four liters per person, per day, in tight-lidded non- breakable containers
- Food - non-perishable, such as canned and dehydrated foods, dried fruit and canned juices. Remember a can opener.
- Flashlight and spare batteries.
- Battery operated radio. Store separately in waterproof bags.
- Essential medications and extra prescriptions of medications and eyeglasses.
- Personal toiletry items, such as toilet tissue, soap, toothpaste and toothbrush
- Class ABC fire extinguisher
- Wrench to turn off natural gas
- Shoes and some clothing
Your vehicle and office supplies should be pretty much the same, but you may want to add pictures of your family in case you need to look for them.
HOME CHECK:
Go through your home, imagining what could happen to each part of it if the house was shaking violently.
Things that are proven to need attention are:
- Check for home hazards. Is the house bolted to its foundations? Are the walls braced? Chimneys weak? Are roof tiles loose? Make necessary repairs now.
- Tie down your water heater and other appliances that could break gas or water lines if they fall over.
- Secure top-heavy furniture to prevent tipping. Keep heavy items on lower shelves.
- Fix mirrors and other hanging objects so they won't fall off hooks.
- Locate beds away from chimneys, windows heavy pictures. Closed curtains will cut down on the spray of glass.
- Install automatic gas and water shut off valves.
- Put anti-skid pads under small appliances.
- Store valuable documents in fire-proof place.
- Use childproof locks on cupboards to prevent stuff form spilling out.
- Store flammable items in a safe place. Preferably in the shed.
- Place plywood in the attics around the chimney to help prevent bricks and mortar from coming through the ceiling.
DURING THE EARTHQUAKE:
If you are inside, stay there. Hide in places such as hallways, in corners and archways. Take cover under heavy furniture, anything that you can under and hold onto. Cover your head and face.
If you are in the yard, stay clear of buildings and wires that could fall on your head.
Don't go outside where you may hit by falling debrisÑsuch as sidewalks beside tall buildings.
If you are in an elevator, get out on any floor you can.
If you are in a vehicle, stay there but get off the road and away from bridges, overpasses and buildings.
Try to remain in a protected place until the shaking stops. Always anticipate aftershocks. Try to remain calm and help others in need.
AFTER THE EARTHQUAKE:
Check yourself and others near you for injuries. Help those in dire need then tend to minor injuries.
Check your home for structural damage and other hazards.
If you are evacuating, locate your supplies and family and leave.
Use a flashlight to check utilities and not shut them off unless they are damaged. Leaking gas will smell. Don't light matches or turn on lights until you sure there are no gas leaks or flammable fluids.
Check your neighbours after checking on your own family. Place a HELP sign in the window if extra assistance is needed.
Confine frightened pets.
Secure your home against intruders as best you can.
Turn on your radio and listen for emergency broadcast instructions.
Don't use your telephone, except in extreme emergency.
Don't use your car, except in extreme emergency.
Avoid waterfronts because of the threat of tidal waves.
If we do experience an earthquake, are you now prepared? Or are you thinking about getting prepared? It can be a very devastating thing to happen, but if you are prepared then it will be a little bit easier to cope with.
Vacation Tips
Don't leave home without these vacation tips:
- Make sure that the exterior of your home is maintained, hedges trimmed, lawn cut before you leave. If you'll be gone more than a week, arrange for your yard to be maintained.
- Call your local police department to see if it has a vacation check program. Frequently they will check on your house if you let them know you are away.
- Most people inform their alarm company and have their mail and newspaper delivery stopped. Some people chose to go by the rule of the less who know the better. So they will have some one trusted look after these things for them.
- Have a neighbour check up on things and feed the animals and water plants. Your dog shouldn't be put in a kennel, it should be at home doing what it does best, guarding your home.
- Put at least two lights and a radio on automatic timers. If you have sensor lights, ensure that they are working.
- Leave your shades and blinds in their normal positions. Burglars look for small changes in the appearance of houses that indicate to them that no one is home.
You have worked hard for your vacation. Take a few precautions before you leave so you will leave all your worries behind and really enjoy your self.
Spring Thaw Can Cause Flooding
With spring thaw just around the corner, homeowners should protect their home from potential dangers like flooding.
Melting snow added to typical seasonal rain showers can turn any low lying area, such as a basement, into a mini-swimming pool. The result can be the destruction of personal property and possibly damage to the structure of a home.
After the snow melts, or even after a heavy rainfall, water can leak into a basement through walls or through saturated weeping tiles. Another dangerous side effect of excess water around the home is the fact that rainwater can drain into sanitary sewers using up capacity in treatment plants and possible causing a sewage backup into your home. Damage causing by melting snow and ice may not be covered by insurance policies. And typically, damage resulting from a lack of maintenance, seepage and leakage, is not covered.
The following is a list of tips which may help prevent a flood from ruining your property.
- Landscape your property so the land slopes away from the foundation of your home. A new home will have land which slopes away, but years later, the earth settles flat. Reshape this land by adding soil to create a decline away from the home.
- Position eaves troughs so the water discharges well away from the house. It is also important to ensure the eaves troughs are working properly (not cracked anywhere) and are cleaned regularly of any debris like leaves and dirt. In homes where the eaves troughs are connected directly into the sewer system, disconnect them and redirect the flow of water to your garden or lawn. Emptying the eaves troughs through the sewer system creates a risk of overloading the system.
- Protect against sewer backup by putting caps on the basement floor drain and the washing machine stand pipe. A gate valve to close off the sewer line is also recommended to protect basement sinks and showers.
- Install a sump pump, so that weeping tile seepage can be pumped away without causing problems.
- Repair any foundation cracks.
- Check your basement frequently for cracks in your walls and floors and leaks around the windows and make sure any repair work which needs to be done is completed before spring.
- Courtesy of The Co-operators Insurance Company.
