Use hurricane season as reminder to complete home inventory

NEW YORK (6/5/07)--June is the official start of hurricane season, but even if you're not close to a coastal area, think "home inventory"--now--before you need one. Anyone who weathers a hurricane, tornado, fire, flood, or other natural disaster can attest: The claims process is a lot easier if you've documented your home's contents (Money Adviser June).

According to the Insurance Information Institute (I.I.I.), the 2007 hurricane season is expected to be an active one, with an 86% probability that hurricane activity this year will be in the top one-third of years historically (I.I.I. May 23).

To start listing your home's contents, take advantage of free software from I.I.I. Go to knowyourstuff.org and record details, including serial and model numbers, places and dates of purchase, and replacement costs. You can sort by room and track donations to charity. Make backups of inventory files for safekeeping outside your home.

No matter where you live, take additional steps to prepare for natural disasters:

Check for sufficient coverage. If you have to rebuild, do you have enough insurance to replace all your personal belongings? Tell your insurance agent about any improvements or alterations to your home so the increased value is reflected in your policy.

Check for Additional Living Expenses (ALE) coverage. This refers to the additional costs of living away from home while your house is being repaired or rebuilt and covers expenses such as hotel bills and restaurant meals. Some policies automatically provide coverage for 20% of the amount of insurance you have, but only for a specified time period. If you want more coverage, your premium goes up.

Ask about flood insurance. Standard home insurance policies don't cover flood damage. For more information, visit floodsmart.gov.

Prepare an evacuation plan. For each member of the family, gather a supply of medicines, prescriptions, food, water, change of clothing, flashlights, batteries, radio, and comfort items.

Compile a "grab 'n' go" packet of financial documents. If you have to leave your house quickly, could you find documents you'd need to prove identity, pay bills, and deal with insurance agents? Compile a folder with copies of insurance policies, birth and marriage certificates, wills, deeds, account numbers, recent tax returns, driver's licenses, and other personal information. Keep this in a safe--but easily accessible--place in your home.

For more information, read "Disaster-Proof Your Important Papers" in Home & Family Finance Resource Center.