Happy New Year and I hope everyone enjoyed their holidays. Now that we are in the first full week of the year it is safe to say that 2014 is officially behind us and it is back to business. I want to use this week’s blog to wrap up my series of posts regarding Homeowner’s Insurance for the Holidays. This week I want to look at insurance for your possessions.
Did you get what you wanted?
In early November the day after Thanksgiving sales are teased and a certain excitement is created around getting big ticket items at a great sale price. I am sure you heard the enticing ads for the early bird or door buster specials, or the after Christmas close out sales. Big ticket items include TV’s, game consoles, appliances, computers, tablets, cameras, and many other specialty electronic devices. Once the wrapping paper, the boxes, bows, strings, and packaging are cleared and these items are put together, hooked up, and mounted rarely does anyone think to themselves do I need to contact my insurance agent? Are all of these new things covered under my homeowner’s insurance policy?
Holiday Movie Inspiration
I will draw on inspiration from holiday movies one last time as a parallel to show how art imitates life. In the story “How the Grinch Stole Christmas” the main the character the Grinch steals every last crumb from the homes of the residents of Whoville. The Who’s wake up to find nothing left in their homes except some hooks and wire. The theme in Home Alone is also similar. The two bandits patrol neighborhoods waiting for unsuspecting families to leave for the holiday leaving their homes and possessions vulnerable to burglary. While the families are out of the home the burglars break into the home and steal everything. Silverware, fine china, electronics, crystal, and just about anything they could squeeze into their van. What would you do if you walked into a situation where you had been robbed? Would you notice everything that was missing? Are you certain you have the right coverage on your possessions?
Coverage for your Possessions
Almost every homeowner’s insurance policy includes coverage for your possessions. Coverage for your possessions is separate from the coverage you have for your structure. The best way to distinguish between the two coverages’ is that if you took your house, flipped it upside down, and shook it, everything that would fall out would be considered personal property and everything that remains inside is part of the structure and would be covered under the dwelling area of the policy.
How will these things be replaced?
The first thing you want to check on your policy is to make sure your possessions are insured for their full replacement cost. Without the replacement cost endorsement on your policy your possessions then become insured for their depreciated actual cash value which would leave with you with little money to replace the stolen items. If you bought a TV or a Computer five years ago and it was stolen what would the value be today? Would you rather get the depreciated value of the item or be able to replace it with something new?
Let us review your policy
There are many different aspects to the personal possessions part of the insurance policy. Most carriers have limits as to how much they will pay out for certain items as well. Contact the John Suppa Insurance Agency and let us review your homeowner’s policy. We will make sure everything is adequately covered and share with you different tools you can use to take inventory of your things. We will make sure all of your bases are covered and ensure that you are Safe with Suppa. Call John Suppa or Tiffany Baird for a review of your policy at 412-238-8200.