To protect possessions, people need to know their “stuff”

April 15, 2011

“When choosing homeowners insurance, most consumers think more about the value of the home than about their prized possessions inside.”

The National Association of Insurance Commissioners (NAIC) recently published an article about this topic.  The following is summary of interesting key points.

“When determining coverage needs, it is important to know all the “stuff” in your home that warrants special protection. Insurable items do not only include luxury items like jewelry and art, but also fun purchases that support personal passions.

Whether it is gourmet cooking gadgets, designer handbags or high-end electronics, what people invest in personal passions can have a profound impact on insurance needs. In fact, according to a recent American Express survey those passions may add up to a lot more than you think:

  • Fashionistas spend more than $1,400 annually on shoes, apparel and accessories.
  • Techies spend approximately $1,300 a year on computers, video games and televisions.
  • Foodies invest an average of $2,400 annually on high-end appliances and fine dining.

One of the best ways to make sure possessions are fully protected is to document them with a home inventory.  A home inventory assures you know exactly what you own, and what it’s worth, before you need to make a claim.  Knowing what you own will help you choose the right coverage in the first place.  Documenting possessions with a home inventory is the most important step yo can take as a homeowner or renter to make sure you have enough coverage to fully protect and replace your valuables if something happens.”

In my next post I will talk about what you should consider to complete you home inventory.