Securing Your Assets

The eastern edge of Colorado is not typically prime tornado territory but recently we had several tornado warnings. Beyond tornadoes, it is not hard to find dramatic and high risk weather conditions all around the world including earthquakes, powerful flash floods, damaging hail and other weather nasties.

Nobody is exempt from unpredicted weather conditions and the horrible consequences that can follow but there are some key financial planning and home preparations that everyone can do to survive weather related disasters and retain the ability to move forward.

Do you have adequate insurance?

The weather may be unpredictable but maintaining adequate insurance levels based on the weather risks in your area is absolutely essential. The most basic home insurance policy doesn’t cover all types of risks and possible damages. Don’t be surprised after the fact. Take the time to check your policy levels and types of coverage.

If you can’t handle this evaluation on your own by reading your policy conditions and coverage, then ask your insurance advisor to give you a review and verify policy coverage. Verify your coverage from damage caused by natural disasters that are common to your area.

Minimally your policy should provide full replacement or replacement cost coverage in the event of a natural disaster. Every policy has defined limits so be sure to understand the limits of coverage on your policy. Additional coverage may be necessary and can be purchased if needed.

The costs for disaster coverage such as floods, tornadoes or earthquakes can be high but unless you have the funds to safely cover any coverage shortfalls without jeopardizing your retirement income needs, the costs may be worth it.

With proper insurance coverage in place, be committed to keeping your policy current. Every few years review your policy coverage to ensure your insurance is still adequately covering the value of your home. Changes in property values due to external demand or upgrades to your home can trigger needed updates to your policy.

Are your valuables covered?

For most people, it is a mundane task to prepare and maintain a reliable list of the valuable contents in your home, but it is a very important task. Your list should account for a room by room description of contents including photos, equipment with serial numbers, collectibles, furniture, high value fixtures, electronics etc.

This type of documentation will save time and limit personal losses when you are facing disaster related claims. And photos and documentation is critical in verifying claims for tax losses and other deductions that may be available. Talk with your insurance advisor to confirm what types of items should be included on your list to satisfy your particular insurance company.

If you own high value items of jewelry or other items, a separate policy may be needed to ensure proper coverage is in place. And even if you rent, you need to consider insurance on your personal contents in the event of a disaster.

Final considerations…

Make sure your personal attorney has a copy of your will and for other personal documents and family papers, it is best to purchase a fire and water proof home safe or rent a safety deposit box at your local bank. Having more than one set is recommended in case key papers are lost, destroyed or stolen during a disaster.

Also, in some emergencies you only have limited time to act. Each family should think about preparing an emergency 72 hour kit that is small enough to physically carry if needed and includes the most critical items needed in a disaster including food, water, medical supplies, matches, cash, insurance cards, and other key records and personal items of value.

At times it almost seems illogical to prepare for completely unknown or low probability events in life but those that have lived through them affirm the wisdom of preparation.

Being financially able and confident that you can rebuild your life in the face of a life changing disaster is critical and doable if you take the steps to be ready before a crisis happens.

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About The Author:

For more than 20 years, Karl Edmunds has been a noted author within the business and management consulting arena. As a senior, he now engages his curiosity and observations about life to write about key issues of importance to the growing community of seniors (Boomers), and the value of living life to the fullest every single day. For questions or help go to http://Plan-Retirement.org or http://For-Seniors.org