Following a disaster, many homeowners are stunned to discover their insurance doesn’t cover everything they lost – and sometimes doesn’t cover any of their losses. We offer these tips to fine-tune your coverage. Do so before a disaster strikes, because many changes don’t take effect until after a 30-day waiting period.

Standard homeowner policies do not cover flood damage from rising water, whether it’s coastal flooding from a hurricane’s wind-whipped storm surge or inland flooding from heavy rains. Check to see if you live in a flood-prone area. If so, ask your insurance agent about the need for flood insurance. Some homeowners may qualify for the National Flood Insurance Program, depending on their home’s location.

Not all policies cover damage caused by wind or hail. If you wish to have that coverage, call your insurance agent.

If your home and possessions have increased in value or you’ve made improvements to your property in recent years, check your coverage limits. Consider increasing your coverage if the policy doesn’t cover the current value of your home and its contents.

Standard policies usually limit payments on valuables such as jewelry, silverware, antiques, boats, guns, and computers.

If you live in a condominium, find out what coverage your condominium association provides. You may need your own homeowner’s or renter’s policy to cover any damage that may occur to your unit and its contents. Pay attention to your deductible or out-of-pocket expenses. Most policies have a higher deductible for hurricane damage.

Does your policy cover the replacement cost or depreciated value of your possessions? Most policies cover the “actual cash value,” or depreciated value, of personal belongings, which means you won’t get what you paid for your furniture, electronics and clothing if they’re ruined. It costs more to insure them for their replacement value, but you’ll have an easier time getting back on your feet.

Make an itemized inventory of your belongings, including costs, purchase dates and serial numbers. attach receipts to the inventory sheet. Your insurance company may require proof of the cost of any item for which you make a claim. Dated photos or videos of your possessions are also a good idea

Keep a copy of insurance records in a safe deposit box or with a relative or friend. These records should include your insurance policy, inventory records and the phone numbers for your agent or insurance company for reporting claims. Upon receiving an evacuation notice, you should take insurance records stored at home with you, or store duplicates in a safe deposit box.

Last but not least, you might want to check about an umbrella policy.  What is umbrella insurance?   Umbrella insurance is supplemental insurance that increases the limits of your liability for a given risk. Who needs umbrella insurance?  Anyone whose total assets significantly exceed the limits of liability of existing base insurance policies.  Premiums are generally reasonable for the coverage provided.

Remember, these tips are only general guidelines. Since each situation is different, contact a professional if you have questions about a specific issue. For your convenience, here is a list of home insurance companies in New Jersey.

Source: Housemaster.com