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Rocky Mountain Insurance Information
NEWS
6565 South Dayton St. #2400, Greenwood Village, Colorado 80111
Serving Colorado, New Mexico, Utah & Wyoming
Contact: Carole Walker, Executive Director
(303) 790-0216 or 1-800-355-9524
Release Date: Immediately
Topic: Insurance
ALONG WITH LOSING THOSE EXTRA TEN LBS. MAKE SOME 2003 “INSURANCE” NEW YEARS’ RESOLUTIONS.
December 2002 –When you’re sitting down to make that annual list of “want-to-dos”, you may want to consider making some resolutions that have an impact on your pocketbook and offer you financial peace-of-mind. “We are currently in one of the toughest homeowners insurance markets ever,” cautions Carole Walker, Executive Director of the Rocky Mountain Insurance Information Association. “That means along with promises to exercise and skip dessert, we should resolve to usher in 2003 with a better understanding of what our insurance covers, how to save money and when it’s wise to file a claim.”
Consider adding these 2003 Insurance Resolutions to your list:
RESOLUTION #1: DO AN ANNUAL INSURANCE CHECK UP
Insurance is something most people don’t even want to think about until they need it the most. But, understanding what is and isn’t covered in your homeowners’ insurance policy can mean the difference of being able to rebuild your home and replace your personal belongings. Homeowners need to do annual insurance policy "check ups" to make sure they keep up with local building costs and have adjusted their coverage to include home remodeling and additions.
If you don’t have replacement coverage, consider spending a few extra dollars for coverage that pays for the cost of replacing the damaged property without deduction for depreciation.
RESOLUTION #2: KNOW WHAT IS & ISN’T COVERED
The typical homeowners insurance policy covers damage resulting from fire, windstorm, hail, water damage (excluding flooding), riots and explosion as well as other causes of loss, such as theft and the extra cost of living elsewhere which the structure is being repaired or rebuilt.
Your policy also covers your legal liability (up to policy limits) if you, members of your family or even your pets hurt other people or their property, not just in your house, but away from it, as well. If you have a lot of assets to protect, you may want to consider an umbrella policy that offers increased protection against lawsuits.
The standard policy does not cover flooding, so you may want to look into flood insurance coverage if you’re concerned that you’re at risk for rising floodwaters.
RESOLUTION #3: MAKE A HOME INVENTORY
Before a catastrophe strikes and you're faced with a loss, make a home inventory that includes lists, pictures or a videotape of the contents of your home. After all, would you be able to remember all the possessions you've accumulated over the years if they were destroyed by a fire? Having an up-to-date home inventory will help you get your insurance claim settled faster, verify losses for your income tax return and help you purchase the correct amount of insurance. See www.rmiia.org/Homeowners/Home_Inventory.htm for a sample home inventory.
RESOLUTION #4: TAKE HOME MAINTENANCE PREVENTION STEPS
Do routine home maintenance check ups. Preventing damage from water losses and other typical in-home disasters that can often be avoided may save you from future headaches and financial risk.
When it comes to repairing minor damage you may want to consider paying for it out-of-pocket. Of course, the decision to file a claim for damage or a loss that’s covered under your policy is ultimately up to you and what your wallet can withstand. Homeowners should be especially careful about filing a number of small claims over a short period of time.
RESOLUTION #5: DON’T USE YOUR POLICY FOR HOME MAINTENANCE REPAIRS
The homeowners’ insurance policy was never meant to be a home maintenance policy. The coverage is designed for sudden and unexpected large losses.
Consider carrying a higher deductible. This will save you money on your premium and discourage you from filing small, petty claims that put you at greater risk for non-renewal.
Learn your home’s claims history. If you are buying an existing home, find out what claims have been filed in recent years. Water loss claims, for example, can impact whether the property is considered higher risk. The Comprehensive Loss Underwriting Exchange (CLUE) database, created by ChoicePoint Inc. in Georgia contains 90-96% of all homeowner claims nationwide. Reports are available online at www.choicetrust.com for a small fee.
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Rocky Mountain Insurance Information Association is a non-profit consumer information organization. Affiliated with the Insurance Information Institute, RMIIA has been serving consumers and the media since 1952.
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