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Show Property insurance adequate Many homes recently have been destroyed by natural disasters such as fires, floods, storms and hurricanes. Many did not have enough insurance to offset tlieir losses. For example, " one California home valued at $108,000 had only $54,000 coverage on furniture, appliances, ap-pliances, clothing and on other items. But loss to property for this particular property owner totalled $77,000 from fire damage. The family had to pay $23,000 of their own to replace lost property in the disaster. Another home hit by a fire that contained personal property valued at $200,000 had only $65,000 coverage on the items which included paintings, antiques, books and pieces of jewelry. These examples may seem extreme, ex-treme, but they are not. Most homeowners do not have adequate coverage on personal property-although coverage on the home itself may be sufficent. In 75 to 80 percent of such great losses, the policyholder has exhausted the limits of his property coverage, says one insurance in-surance spokesman. Most homeowners policies are written so that coverage is about half of the coverage amount on the building. If the home is insured for $50,000, personal property is often only covered up to $25,000. This may be more than Contort page 17 Cont. from page 16 adequate if a burglar breaks in and takes only a few items or if a fire demolishes only a few possessions. But what if a windstorm or fire destroyed everything in the home? How can you determine if your personal property coverage is adequate? Here are several ways: " Make a detailed, inventory of your home, checking every room. Take note, if possible, how much was paid for each item and when it was acquired. Not only check major ap pliances such as the refrigerator, TV set, stereo or washer and dryer, but also small items. Anything that has some monetary value. Be sure to take pictures. Pictures will cover everything. . After you have completed your inventory, keep it in a safe place away from home. A bank safety deposit box . would be a good spot. And keep an extra copy for your insurance agent's files. Keep it up to date. |