fi nancialforum Personal Property M
Many people assume their renter’s or homeowner’s insurance provides reason- able coverage for personal property, such as jewelry, electronics, collectibles, and other valuable items. Unfortunately, while per- sonal property coverage limits are typically 30 percent to 50 percent of the value of the house ($90,000 to $150,000 of personal property coverage for a $300,000 home), coverage for many items is capped at $500 to $1,500 an item, which might not provide adequate coverage for your belongings. Consider the following steps to ensure
Are You Covered? The amount of personal property coverage you have depends on your insurance company. Con- tact them to find out how much and what is cov- ered, and then determine what additional coverage you might need.
you are protected: Catalog: Make sure you have documen- tation of your belongings. Create a photo or video log, and list details such as serial numbers, purchase dates, special features, and the current estimated value of each item. Make sure you keep a copy of the photo or video log in a secure place out- side of your residence (the venerable bank safety deposit box or an online backup like
www.carbonite.com or
www.mozy.com are good choices). Assess: Every two to three years, assess the value of your collectibles so you know how much coverage you need. For collectibles with active markets, you might be able to gather this information yourself. However, for collections, you might want to consider the services of a qualifi ed appraiser with direct experience in that specifi c collectible market. While hiring an expert might cost more, the infor- mation you receive can be invaluable.
46 MILITARY OFFICER JULY 2011
It’s important to have adequate insurance to protect your collectibles and other valuables. Phil Dyer, CFP, off ers three tips to help you ensure your belongings are covered.
Cover: As previously noted, your basic
homeowner’s or renter’s policy likely will not provide coverage for valuable collect- ibles. You might need to add specialized coverage, known as “fl oaters,” to your base coverage. While this usually can be done on a per-item basis, you might want to agree to a total coverage level by cate- gory with the insurance company and get a blanket fl oater. Explore options such as “accidental breakage” coverage for fragile items and “mysterious disappearance” coverage to cover the loss of an item when no exact cause (such as a criminal break-in) can be determined. Extensive collections likely will require a specialized policy. Specialty insurers include
www.hagerty.com, which off ers coverage for collector cars and boats, and
www.collectinsure.com, which off ers poli- cies for a broader range of collectibles. This is my 93rd — and fi nal — Finan-
cial Forum column. After nearly eight years, I am leaving MOAA to focus on my fi nancial-planning practice and build a new strategic consulting business supporting aspiring and current veteran entrepreneurs. Thank you for the opportunity to be of ser- vice, and I wish each and every one of you the very best!
MO
— Former Army Capt. Phil Dyer, CFP®, is deputy director, Benefi ts Information and Finan- cial Education. To speak with a fi nancial plan- ner, contact USAA at (877) 913-6622 or www
.usaa.com/moaa, or visit
www.moaa.org/fi nan cialcenter for other resources.
PHOTO: SEAN SHANAHAN
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