How do I know if I have enough coverage?

Steve Shoultz, of Priority Risk Management, agrees that $150,000 is a lot of money, but is it enough? Most people, when they "shop", generally buy things when they are on sale, especially larger ticket items. In many cases, people wait several weeks for items to go on sale. After a fire, tornado, burglary or other insured loss, do you have the luxury of "shopping" for several weeks, or do you need your items replaced immediately? (Does a sports fan want to wait 3 weeks for TV's to go on sale during the playoffs?)

What about inflation? Let's face it; everything in your house has taken years to accumulate! Undoubtedly it will cost more to replace your contents than you originally paid. It has been my experience that most people will spend considerably more to replace their belongings than they ever imagined. I find that people quickly add up the larger items in the house: TV, stereo, computer, furniture, etc. and quickly say, "Oh, $150,000 should be more than enough to replace everything we own."

Unfortunately, it is the little things that add up quickly and end up burning (no pun intended) the insured. Think of how many pairs of shoes, pants and suits you and your family own. How about silverware, plates, picture frames, house decorations, toys, etc. The list goes on and on.

Unfortunately, most people will never take the time to take pictures of every room, let alone complete a thorough home inventory that includes everything they own! For years I have encouraged all my clients to complete a thorough home inventory. As a matter of fact, I provide a home inventory tool on my website for my clients to complete. They can print a copy for their records, but most importantly, the inventory is stored away from the house (the inventory is not much good to you if it burns up in the fire with all your other belongings). Most insurance companies provide a home inventory form. I also recommend that my clients take pictures or a video of every item in their house. Unfortunately, most will never take the time, let alone complete a thorough home inventory that includes the purchase date and cost of everything they own!