Note: Most homeowner's insurance policies provide money to cover the following should a disaster hit:

1) Repairs or replacement for your house, furniture and other personal items.

2) Living expenses should damage to your house force you to live temporarily in a hotel and eat in restaurants while repairs are being made.

There are several types of coverage, ranging from basic to comprehensive. Basic insures your home against fire, lightning, theft, windstorms, hail, explosion, smoke and other threats. The most comprehensive form covers what is known as the "18 perils."

CAUTION: Flood insurance must be purchased separately.

                                       Your Inventory

In order to document the replacement cost of items damaged, you need to have an up-to-date household inventory.

An organized inventory will also: (1) help you get your insurance claim settled fairly quickly and accurately; (2) provide documentation of losses for your income tax return; (3) enable you to arrive at the correct dollar amounts regarding lost or damaged items.

Set aside time this summer to take snapshots or a video of all your possessions. Go room-by-room.

 Don't forget to...

Include your basement, attic, garage, tool shed or, if you have one, an off-site storage unit.

Open all closets, drawers, labeled and unlabeled boxes and suitcases and trunks.

Document often-overlooked items such as: ATVs, boats, motorcycles, bicycles, decks, grills, patio planters, landscaping, lawnmowers, snow blowers, outdoor furniture, swings and other playground-like toys, exercise equipment, silverware, sports equipment (golf clubs, tennis and squash racquets, hoops and balls).

What to note...

Your objective should be to note each item's condition, age, where purchased, the original price and the replacement value.

In the process, record serial numbers and model information for computers, printers, fax machines, scanners, TVs, VCRs, iPods, BlackBerrys, sound systems, dishwashers, washing machines, dryers and the like.

When it comes to clothing, record how many you have in each general category: suits, jackets, shirts, coats, dresses, formal attire, shoes, athletic clothing, children's clothing, etc.

For really valuable items...

In a standard insurance policy, jewelry, silverware and watches are typically covered up to a stated maximum, such as $2,000 to $4,000. If you have items that are more valuable, such as fur coats, precious stones, paintings, antiques, art work, rugs and collectibles (stamps, coins, miniature soldiers, toy trains), look into a separate "rider."  A rider provides extra coverage, but only for items specifically stated in the policy.

#TIP: Make certain you have "all-risk" insurance coverage in your rider so you will be reimbursed no matter how your valuables were lost or stolen.

In some cases, you may need to have valuables appraised. To located a recommended professional go to the American Society of Appraisers (http://www.appraisers.org/) or the Appraisers Association of America (http://www.appraisersassoc.org/). Both organizations have a "Find An Appraiser" link.

If you have equipment in your home-based office, talk with your agent about insuring these items separately, perhaps through a home office rider.

Understanding riders...

Riders, as described above, can be essential. However, make certain yours do not duplicate coverage in your basic policy. And, speak with your agent about an "additional living expenses" rider. It will cover up to a stated percent of your house's value (in living expenses) while your house is being rebuilt. Make certain it also covers government ordered evacuations.

Storing the finished inventory...

Whether you audio tape, video tape, click snapshots or use an inventory that's part of a personal finance software package, you should have three copies of both your handwritten notes and the visual/audio inventory.

The first copy is for your safe deposit box. But in case your bank was flooded, as happened recently in Iowa, the second copy should be left with a friend or relative who does not live nearby. The third copy should go in your water- and fire-proof disaster kit, which we discussed last week.

TIP: With each copy of you inventory, include a copy of your homeowners (or renters) insurance policy.

Finally, don't neglect to update your inventory when you move, acquire or sell possessions, give away things or donate them to charity.

                         For Further Information

To download a free Homeowners Inventory software package, go to the Insurance Information Institute at: http://www.iii.org/. Toward the bottom of the home page you'll see: "Know Your Stuff." Click on "Home Inventory" for access to this online tool.

         - Nancy Dunnan