The following is essentially borrowed from money.msn.com . I shortened it a bit to fit a blog, but if it interests you, I strongly encourage you to visit the original at this site by clicking here: Original Article on MSN
We, at Sage Insurance, believe that knowledge is the most valuable asset you can have. Just knowing what can go wrong will put you steps ahead in preparation when it does.
In the aftermath of violent weather conditions, such as those caused by Hurricane Irene, affected homeowners quickly learn whether they purchased adequate policies from their insurance companies.
Here are some of the key things policyholders regret following any major damage.
I never bought flood insurance
People who live in areas where floods are likely to occur should know that standard home insurance policies won't cover flood damage. Hurricane Irene showed that even folks who rarely have to worry about floods can be caught off-guard.
To cover flood damage, you'll need a policy backed by the federal government with cooperation from local communities and private insurers.
Contact your agent, insurance company or the NFIP for more information about potential flooding in your community. And remember that flood policies don’t kick in until 30 days after you buy them. So if a river near you is already rising, it’s too late.
I didn't tell my insurance company about my home addition
Sometimes in an effort to get a low insurance quote, policyholders "forget" to tell their insurers about home additions or other remodeling projects. That may save you money in the short run, but you're gambling that a fire or other disaster won't destroy your home and take your investment with it.
Being honest will work to your advantage if you need to file a claim. Remember, all improvements increase the cost to repair or replace your home, which is why you want them to be reflected in your policy. According to the Independent Insurance Agents and Brokers of America, one-fourth of remodeling projects increase the value of a home by more than 25%.
I didn't buy earthquake insurance
Many homeowners who live near fault lines skip earthquake insurance. After a big quake hits, it's too late to change their minds: they are stuck with the damage or left hoping that the government will step in to lend a hand.
In the U.S., earthquakes are most closely associated with California, the Pacific Northwest and Alaska. However, nearly 75 million people in 39 states face some degree of danger, says a report by the Congressional Research Service issued in early 2011.
Even living under the constant threat of earthquakes, only about 12% of Californians buy earthquake insurance, according to the California Earthquake Authority, which administers the earthquake insurance program in the state.
Outside of California, you can generally buy earthquake insurance from your home insurance company. There are also limited options for standalone earthquake policies on the West Coast, including GeoVera Insurance Co. and Arrowhead General Insurance Agency.
I didn't buy insurance because I'm a renter
Tenants often undervalue the possessions they keep in their rented house, apartment or condominium. Simply replacing your wardrobe can cost thousands of dollars. Now, add in furniture, kitchenware, artwork and electronics.
You should always have renters insurance. It covers all of your personal property, which can be very costly to replace. Renters insurance is very inexpensive for what you get.
I didn't have the correct replacement costs in my home insurance policy
Many consumers confuse the market value of their home with its replacement cost. They are two very different things. Building costs can go up even when real estate values fall. Your homeowner insurance policy should cover the cost of repairing or rebuilding your home independent of how much you could get for it in a sale. The value of the land under your home isn't a factor in replacement cost.
Some people mistakenly rely on the insurance coverage levels required by their mortgage company. Those are set to protect your structure, but not necessarily your possessions.
You should have a policy with guaranteed or extended replacement costs, which protect you after a disaster, when the demand for contractors and materials can drive costs higher.
I lost my policy
Insurance agents can replace lost policies, but you are far better off keeping your own copy in a safe location. Keep a copy outside your home in case it is lost in a flood, fire or other disaster.
I didn't take photos of damage to my home
You've often heard that it's a good idea to keep a camera in your car to take photographs at an accident scene. The same holds true for your damaged home. To avoid home insurance disputes about the extent of the destruction, it's a good idea to take photographs following a disaster.
Taking photos of the damage is an excellent idea. The nice thing about today's technology is you can download the stuff into your computer. It is easy to put it on a flash drive and keep it with you or keep it in your office.
I never took inventory of my possessions
Many homeowners delay creating a home inventory until it's too late. The last thing you want to do is to construct one from memory while you are under the pressure of filing insurance claims or finding temporary housing following a disaster.
If you don't want to write down everything you own, it's a simple task to walk through your home with a still or video camera, visually recording your possessions.
A common insurance regret occurs when people create an inventory but fail to put it in a safe location outside the home. When the home is destroyed, so is the inventory. In our digital age, creating a foolproof inventory is simple. You can create an electronic file of your list along with photographs and store it online or even e-mail it to a family member for safekeeping.
IT'S ALL JUST GOOD ADVICE IF YOU DON'T HEED IT. IF YOU WANT HELP, CALL US.