Appraising Your Prized Possessions

We spend much of our lives working and saving to attain the financial security and worldly possessions of our dreams. So, you may find it helpful to keep track of your assets for insurance purposes. A thorough inventory of your "treasures" should include anything that may appreciate in value due to its age.

A professional appraiser can establish the market value of your prized possessions. However, you can also acquire objective documentation from museum curators, as well as art, coin/stamp, and antique dealers. A few other simple substitutes for an official appraisal are bills of sale or retail receipts. These documents, however, reflect value as of the date of purchase only.

Coverage Makes a Difference

Current appraisals are particularly useful for insurance purposes concerning expensive items such as furs, jewelry, gold, and sterling silver. In general, the maximum benefit under a homeowner's policy applied toward the contents of a home is 50 percent of the coverage purchased for the dwelling, although it may be increased to 75 percent under some replacement policies.

The highest claim you can make for individual items under most standard policies may be as little as $500 or $1,000. To increase the coverage for valuables, the common solution is a "scheduled personal property endorsement." This list amends the basic homeowner's policy with bills of sale or appraisals dated within the past two years.

"Extra articles coverage" is also available as part of the homeowner's package. This insurance increases the per-item benefit without the need for appraisals or bills of sale. There is, of course, an extra premium for this coverage, as well as special deductibles. The nature of your property and the premium formulas of the insurance company you choose may help you determine what type of coverage will be most beneficial.

Preventing Risk

Obtaining an appraisal may help you protect your assets and resolve differences of opinion in the event of a loss. If it is difficult to establish the fair market value (FMV) of your possessions by other means, you may want to consider periodic appraisals as part of your asset protection program.

Safety Tips for Scooter Riders

The new version of the foot-propelled scooters once popular in the 1950s may be the latest sensation to hit today's toy market. While sales of the new scooter went unnoticed upon their introduction in 1999, Christmas 2000 brought between 2 million and 5 million units to children ages 6 to 15, according to the Consumer Product Safety Commission (CPSC, 2001). Also on the rise, however, are scooter-related injuries. For the year 2000, the CPSC estimates there were about 40,500 associated injuries to children that warranted a trip to the emergency room.

To reduce scooter-related injuries, here are a few safety guidelines recommended by the CPSC that all children should follow:

• Always wear safety gear, such as a helmet, knee pads, and elbow pads.
  
• Always ride scooters on smooth surfaces, such as the sidewalk or paved, off-road paths. Children should avoid traffic, streets, and other surfaces with water, sand, gravel, or dirt.
  
• Always ride during daylight hours. Children under age 8 should use scooters with adult supervision.
  

Children wearing safety gear can help prevent injuries to themselves, and thus spend less time in the emergency room and more time on scooters.

Preventing Your Home from Heating Up

Devastating home fires can be traced to a number of causes, such as cooking equipment, negligence, children at play, and cigarettes. However, fires originating in a home's electrical distribution system are among the costliest in terms of property damage.

According to the National Fire Protection Association (NFPA, 1999), these electrical fires rank third highest in direct property damage, averaging $576.7 million per year. In addition, they cause about 1,500 injuries and 340 deaths annually.

Burning Issues

Routine maintenance is the key to preventing an electrical fire. You may want to consider inspecting your home regularly for hazards such as overloaded electrical circuits, frayed or cracked cords, improperly installed outlets, and loose connections.

Here are some other safety guidelines to consider:

• Extension cords should be exposed—running them under rugs or behind curtains may invite risk.
  
• Lighting fixtures should be fitted with bulbs that have the correct wattage.
  
• Power strips with separate circuit breakers should be used to avoid overloading outlets.
  
• Televisions, stereos, and computers should be located in places that allow for ample airflow.
  
• Space heaters, lamps, and other heat-producing items should be kept away from walls, curtains, and furniture.
  
• An electrician should be contacted immediately if cover plates on wall outlets are warm or if lights are flickering.
  

Managing Risks

In addition to being a potential fire hazard, a faulty electrical distribution system may result in damage to electrical devices, or even electrical shocks. Please be aware of any potential electrical risks in your home, and install a smoke alarm on every level. To make sure your property, possessions, and family are fully protected from fire and other disasters, consider speaking with an insurance service professional for a review of your insurance program.

Do You Need Rental Car Insurance?

The next time you rent a vehicle, you should consider reviewing any existing coverage you may have under your personal auto insurance policy or credit card. Possibly, you can avoid the expense of purchasing additional coverage from the rental company.

If you have an auto policy in place, you may be covered for collision damage and a certain amount of rental car liability. However, it is essential to understand exactly what your policy offers because the coverage may contain loopholes or restrictions.

If your credit card company offers rental car coverage as part of its membership benefits, you also need to understand the specific terms of that coverage. Although most standard credit cards do not provide any protection, many Visa and MasterCard gold cards and American Express personal cards provide secondary car rental collision-damage coverage. This coverage picks up any remaining collision-damage charges that your insurance policy may exclude. If you are going without any personal auto insurance, the coverage offered under the card becomes primary.

If you still find you have insufficient coverage through these sources, you may want to consider purchasing additional insurance offered by the rental company. This supplementary policy, however, should provide coverage for all possible accidents. The rental agreement should include the following two terms:

• Deductible Limit. Without a limit, you could be responsible for the entire value of the vehicle in the event of an accident.
  
• Liability Coverage. If the policy only provides for the minimum required by state law, you will be held responsible for any damages in excess of the stated limit.
  

Make sure you have all the facts before deciding what insurance you need. An insurance service professional can explain the coverage your personal policy will provide, and determine what additional insurance you may need.