Along with securing the value of your home against loss, homeowners insurance also covers your personal property. After a substantial loss an insurance adjuster will attempt to set a dollar amount on the loss of your property. Often this is based on best estimate values which fall within the norm. But you can be your own best advocate if you have planned ahead. The most important tool you can have is an inventory of your personal and household items.
Having an inventory will help you be sure you have enough insurance to replace the things you own, get your claims settled faster and more equitably, and substantiate losses for your income tax return.
Writing an inventory can be a simple as listing items in detail on a pad of paper. Better documentation may involve photographs, receipts or appraisals, especially for big ticket items as jewelry or valuable collections.
I've recently found a great new tool to help you in the inventory process and it is available for FREE! It is software developed by the Insurance Information Institute, a trade organization dedicated to educating consumers about insurance. The software will help you work through your house, step by step, one room at a time. Simply add items to each room as you move through your house. It also supports attaching digital photos and receipts. Once you are finished you can print a report and keep the inventory backed up securely online or at an off-site location. And it's easy to update after any major purchase.
You can download this free tool at http://www.knowyourstuff.org/. Hint: the website will ask for your email, but it is not necessary to enter one to download the software.
Remember, the best time to catalog your possessions is before a loss! Use this tool to get it done easy.
At Crawford-Butz we are dedicated to providing excellent coverage along with excellent service. If you are in the market for insurance in the greater St. Louis area, or anywhere in Missouri or Illinois, let me prepare a competitive "apples to apples" quote for you to find the best market. Just call 314 752-2500 and ask for Larry. I'm ready to help.
Like many other expenses, auto insurance rates are subject to periodic increases but these should be moderate and reasonable. If your insurance takes an unexpected bump, something else may be going on. The causes for an increase in your premium are multiple but may be broken down into these main areas:
There was a change in your coverage during the previous term. This could include:
- Adding another driver. If you have added an additional driver in your household, particularly a teenager, you have extended the risk which the insurer is covering, even with the same number of vehicles.
- Adding a vehicle or replacing a current vehicle with another model may lead to an increase. Simply adding an additional vehicle can increase the covered risk, even if the car doesn't carry full coverage. In the same way exchanging a car for a newer or more expensive model will lead to a higher premium.
- Increasing your liability cover limits, while providing extended coverage should you be responsible for a loss, will increase the cost of your insurance. In the same way, lowering your deductibles which shifts risk from you to the company also pushes up the cost.
Other changes such as changing the usage from "pleasure" to "commute/commercial" or increasing the number of miles driven per year, may be factors.
There was a change in your personal profile. This would include changes in behavior or status such as:
- You are at fault in an accident. These are typically reported to your insurer even if there is no violation.
- You have a collision or comp loss over a certain threshold. While often "forgivable" the amount of the loss does matter.
- You committed a moving violation and were ticketed or sentenced in court. Many insurance companies will overlook the first offence but a second will lead to a higher rate, even if the first was as long as five years ago.
- If you were ticketed for driving while intoxicated, even if a lawyer has arranged to plead down to a lesser charge.
- Even if you have had no driving incident there could be a rating change as a result of violations, suspensions or accidents by another driver on your policy.
- If you have had a change in address the zip code where your car is now garaged may be considered a higher risk, even if your neighborhood is safe.
- A change in status from "married" to "divorced" may cause your rate to rise from losing a marriage discount.
- A downward fluctuation in your credit rating may force you into another rating tier.
If none of these personal situations apply, a rate increase may be due entirely to a new rating structure on the part of your current insurer. Insurance companies all try to balance the need to maintain a healthy balance sheet with the desire to retain their customers. Increased company losses due to catastrophic events, high accident rates and/or repair costs for your defined area [such as St. Louis] and general economic conditions can all contribute to a company raising their current rates for auto insurance.
You have options. You may want to make adjustments in your coverage which will save you money on your premium. Or you may want to "shop it around" to be sure you are not over-paying. At Crawford-Butz we represent companies dedicated to providing excellent coverage at an excellent value. Let us prepare competitive "apples to apples" quotes for you to find the best market for you. Just call 314 752-2500 and ask for Larry. I'm ready to help.
Along with securing the value of your home against loss, homeowners insurance also covers your personal property. After a substantial loss an insurance adjuster will attempt to set a dollar amount on the loss of your property. Often this is based on best estimate values which fall within the norm. But you can be your own best advocate if you have planned ahead. The most important tool you can have is an inventory of your personal and household items.
