(07/26/2013) Joe Hernandez, ARM, AAI
From the United States Fire Administration: An estimated 360,900 residential building fires were reported to U.S. fire departments each year and caused 2,495 deaths, 13,250 injuries and $7 billion in property losses. Cooking was the leading cause of these fires.
We never expect that we will experience a fire in our homes or for rural resident’s wild fires that often occur due to arson, negligence or lightning. The big question is, “Are you Prepared?” There is one simple solution that can protect your home and personal belongings from fire lose and that is an insurance policy. If you rent, you can protect your personal belongings as well as your personal liability.
As a homeowner you want to be sure you are insured to the actual replacement cost to rebuild your home. Always ask for guaranteed replacement cost on your home and personal belongings. There is a minimal cost attached to that coverage and well worth it in most cases you will get a new item without depreciation.
If you have jewelry, antiques, art work and musical instruments, many insurers can provide a special rider and schedule those items for actual replacement coverage’s based on providing appraisals. Many of those items will have a limited value on the policy and if not insured on a schedule for their replacement cost you will receive less than what the item was worth.
Renters polices can start at about $300 a year based on the value of your personal belongings including furniture and clothing. A homeowners policy is typically higher starting at on average about $500 to $600 and increase from there based on the replacement cost of your home and all your personal belonging. You can discuss this with a licensed insurance agent. To your advantage there are many insurance companies to select from. Please do not just consider the price but consider all the coverage’s that are provided and select accordingly.