June 20, 2019
The devastating April fire that befell Paris’ Notre Dame cathedral was mourned worldwide. If your heart ached at the sight of the treasured masterpiece burning, I have to ask: how would you feel if that happened to your home?
I am asking because I remain concerned that many of you haven’t taken the smart step of creating an inventory of your possessions. According to the Insurance Information Institute, only half of homeowners have created an inventory of their possessions.
That means half of today’s homeowners are setting themselves up for even more heartache in the event of a fire, flood, or a robbery. Your life insurance company will want to see proof that you owned the items you include in a claim for reimbursement. Without an inventory the process can be slower, and you may end up disappointed.
Besides, in a time of loss and upheaval, it will be hard to think through a complete list of everything you lost. The time to do that accounting is now, when you are calm, can carefully create a written and visual record of your home’s possessions, and gather all the receipts for major purchases.
You know one of my life rules is to hope for the best, but plan for the worst. Creating a complete home inventory is essential life planning to protect you.
And while we are on the topic of home insurance, I would be so thrilled if you took a few more minutes to pull out your policy and confirm that you have Extended Replacement Coverage. The “extended” refers to the fact that your insurer will consider repayment that exceeds the stated value of your policy by up to 20% to 25%. That can be a very valuable cushion in the event you suffer a major loss.