Insurance Losses - Being Prepared For Disaster
BEFORE Disaster strikes - Having a disaster plan is the best idea, but that takes advance preparation, which means work on your part.
But it is work that is well worth it if the unthinkable happens.
If you have a plan about what to do in case of a disaster (even what to do in several different disaster scenarios) then you are much better prepared and already will have a plan of action and know what to do in the event of a loss.
That difference not only reduces the damage to your property and shortens the time to return everything to normal, it also makes a huge difference in reducing the overwhelming nature of the loss.
Make an inventory (shudder) Most people get awful images in their head when I suggest they do this.
They immediately see themselves having to go through each room in their home or business furiously writing down a list of every single thing they own, the year purchased, where they purchased it, brands, model numbers, etc, digging up the receipts for it, and maybe even taking a pictures of it.
They see themselves juggling clipboards, legal pads, and stacks of papers.
Even I shudder when I think about it.
Easier Way to Perform an Inventory Get a video camcorder, (the latest kind that uses a CD to record on not the old bulky VCR tapes), go through each room.
Video the room itself, and any special features, making audio comments as you go to add to the record about any special finishes that are beyond standard building materials like "These are faux finished walls that we had a painter do, and it cost us $1200" or "This carpet was replaced in 2004, and we upgraded to a high grade carpet and pad and have the receipt".
Then, video the contents of the room including all the furnishings, draperies, electronics, any area rugs, or other items not part of the structure.
Do not just film the dresser.
Pay attention to what is inside drawers and closet doors and video the contents inside as well.
If needed, spread the things out on the floor or other horizontal surface.
Those steps will go an enormous way towards proving you had the items, and their replacement cost.
One thing to remember is that most items will survive any loss enough to recognize what they were, except in an extremely bad fire, or a flood that sweeps the items away.
Record Keeping As you make purchases, keep a file with nothing but receipts for those items (mainly large or expensive purchases) There is no need to keep receipts for things like socks, pens, computer paper, or the food in your pantry, unless you have an unusual amount of something or something very expensive.
Keeping the Records Safe If you are in an area subject to catastrophic flooding where items might actually be swept away (like near a river or hurricane area of the coast), or if your property is in a forest fire area, or in an old wooden structure that may burn severely in a fire, then keep all your videos and important records, receipts, and important papers off-premises in another safe, secure location like a safe deposit box at a bank.
Even better to have copies in two locations.
Even in a home or business that is not at extreme risk, it is a good idea to spend the money for a water and fireproof safe to keep the major receipts and videos in, and do not forget your insurance policies and financial records.
Remember to renew the video and receipts at least annually.
Electronic Records Be sure to have backup copies of everything that is stored on your computers, cell phones or your PDA.
One of the easiest ways to do this is with Plug-n-play one-step backup devices designed just for this purpose.
You simply plug them into your device with a USB or other type of cable, and they automatically make a complete copy of everything on each computer you own, most having storage capacity to handle up to 4 or 5 individual computers, although this will be reduced by extremely large capacity computers.
These are great in the event that you are burglarized also.
When you get your replacement computer, everything is copied back onto it, and you have lost nothing.
Again, be sure to store these small backup devices somewhere off premises in a fire and waterproof environment.
The backup devices need to be updated often if you do a lot of work on your computers.
Planning on Specific Disasters Now that you have the record-keeping taken care of, take some time to consider several different types of common disasters and what you can do in advance to prepare for them should they occur, and hopefully minimize their impact on your life.
Sudden, Unexpected Water Damage, Flooding Most sudden water damage is the result of either a roof being torn off the structure in a storm, a water supply pipe or hose breaking, or a sewer backup.
Flooding is usually an event that is known about in advance.
In all of these scenarios, there are things you can do in advance that will eliminate some damage.
First, try to keep things that you can not replace, up off of floors, and in the case of old photos and papers, and precious mementos, keeping them in plastic water resistant totes with snap on lids that seal well, will help protect them from not only moisture, but also smoke should you have a fire, and also from insects and mold/mildew.
Plastic totes are an excellent way to store things like out of season clothing and linens as well.
The more things in totes, the better off you are going to be if the roof leaks, or if there is water damage to your building.
Be sure to look at the lid of the tote.
I almost bought some one time, then noticed there were holes in the edges of the lid all the way around (presumably for bungee cord hooks, but those holes were by design in a very bad place, at the edge of the lid and would have let water inside the tote.
Look for rims on the lids that go down and cover the edges of the bottom part of the tote, and preferably snap in place.
Leaving on a Trip? Shut Off the Water.
When you go on a trip and are not going to be back for several days or weeks, shut off the water supply to the home or building, and relieve the water pressure on the pipes by turning on both a hot and cold faucet for a while.
You would be amazed how many times pipes or washing machine or ice maker lines rupture while people are away on vacation! IMPORTANT: If you do this, turn off the breaker to your water heater or the gas supply valve if it is a gas heater.
If you do not, it could boil dry and be damaged or start a fire! Another thing that will help is to purchase heavy duty, stainless steel reinforced supply lines for sinks, washing machines, and toilets.
Some washing machine hoses are now available with an automatic valve that detects hose failure and shuts a valve automatically.
They are costly but much less than most insurance policy deductibles.
If you know a flood is imminent, gather items that can not be replaced, and take what you can with you.
Stack the rest in water resistant containers as high off the floors as you can (such as on a table or sawhorses with plywood).
Try to raise everything you can.
Use less valuable items to raise other more valuable items up higher.
Sacrifice the worn out old bed to save the brand new dresser.
Plastic 5 gallon paint cans will raise something over a foot off the floor.
Even a few coffee cans under a bed can make the difference between saving it and losing it.
Storm Damage Many times storms will hit without warning and damage a building severely, subjecting the contents to immediate damage.
There is not much you can do in that situation other than try to prevent additional damage once the storm is over.
That will be covered in a later article.
But again, storing items in closets in water resistant totes in closets goes a long way towards protection.
If you have to evacuate for a hurricane, it helps to get things off the floors, and then cover them with plastic sheeting or tarps, so that if the roof is damaged, there will at least be another measure of protection if water leaks in.
When trying to make decisions about what to leave and what to take, remember that insurance can replace most things, but old photos and art, family heirlooms, souvenirs, hand made items, and records can not be.
Focus on what can not be replaced.
Next article - What to do after a loss
But it is work that is well worth it if the unthinkable happens.
If you have a plan about what to do in case of a disaster (even what to do in several different disaster scenarios) then you are much better prepared and already will have a plan of action and know what to do in the event of a loss.
That difference not only reduces the damage to your property and shortens the time to return everything to normal, it also makes a huge difference in reducing the overwhelming nature of the loss.
Make an inventory (shudder) Most people get awful images in their head when I suggest they do this.
They immediately see themselves having to go through each room in their home or business furiously writing down a list of every single thing they own, the year purchased, where they purchased it, brands, model numbers, etc, digging up the receipts for it, and maybe even taking a pictures of it.
They see themselves juggling clipboards, legal pads, and stacks of papers.
Even I shudder when I think about it.
Easier Way to Perform an Inventory Get a video camcorder, (the latest kind that uses a CD to record on not the old bulky VCR tapes), go through each room.
Video the room itself, and any special features, making audio comments as you go to add to the record about any special finishes that are beyond standard building materials like "These are faux finished walls that we had a painter do, and it cost us $1200" or "This carpet was replaced in 2004, and we upgraded to a high grade carpet and pad and have the receipt".
Then, video the contents of the room including all the furnishings, draperies, electronics, any area rugs, or other items not part of the structure.
Do not just film the dresser.
Pay attention to what is inside drawers and closet doors and video the contents inside as well.
If needed, spread the things out on the floor or other horizontal surface.
Those steps will go an enormous way towards proving you had the items, and their replacement cost.
One thing to remember is that most items will survive any loss enough to recognize what they were, except in an extremely bad fire, or a flood that sweeps the items away.
Record Keeping As you make purchases, keep a file with nothing but receipts for those items (mainly large or expensive purchases) There is no need to keep receipts for things like socks, pens, computer paper, or the food in your pantry, unless you have an unusual amount of something or something very expensive.
Keeping the Records Safe If you are in an area subject to catastrophic flooding where items might actually be swept away (like near a river or hurricane area of the coast), or if your property is in a forest fire area, or in an old wooden structure that may burn severely in a fire, then keep all your videos and important records, receipts, and important papers off-premises in another safe, secure location like a safe deposit box at a bank.
Even better to have copies in two locations.
Even in a home or business that is not at extreme risk, it is a good idea to spend the money for a water and fireproof safe to keep the major receipts and videos in, and do not forget your insurance policies and financial records.
Remember to renew the video and receipts at least annually.
Electronic Records Be sure to have backup copies of everything that is stored on your computers, cell phones or your PDA.
One of the easiest ways to do this is with Plug-n-play one-step backup devices designed just for this purpose.
You simply plug them into your device with a USB or other type of cable, and they automatically make a complete copy of everything on each computer you own, most having storage capacity to handle up to 4 or 5 individual computers, although this will be reduced by extremely large capacity computers.
These are great in the event that you are burglarized also.
When you get your replacement computer, everything is copied back onto it, and you have lost nothing.
Again, be sure to store these small backup devices somewhere off premises in a fire and waterproof environment.
The backup devices need to be updated often if you do a lot of work on your computers.
Planning on Specific Disasters Now that you have the record-keeping taken care of, take some time to consider several different types of common disasters and what you can do in advance to prepare for them should they occur, and hopefully minimize their impact on your life.
Sudden, Unexpected Water Damage, Flooding Most sudden water damage is the result of either a roof being torn off the structure in a storm, a water supply pipe or hose breaking, or a sewer backup.
Flooding is usually an event that is known about in advance.
In all of these scenarios, there are things you can do in advance that will eliminate some damage.
First, try to keep things that you can not replace, up off of floors, and in the case of old photos and papers, and precious mementos, keeping them in plastic water resistant totes with snap on lids that seal well, will help protect them from not only moisture, but also smoke should you have a fire, and also from insects and mold/mildew.
Plastic totes are an excellent way to store things like out of season clothing and linens as well.
The more things in totes, the better off you are going to be if the roof leaks, or if there is water damage to your building.
Be sure to look at the lid of the tote.
I almost bought some one time, then noticed there were holes in the edges of the lid all the way around (presumably for bungee cord hooks, but those holes were by design in a very bad place, at the edge of the lid and would have let water inside the tote.
Look for rims on the lids that go down and cover the edges of the bottom part of the tote, and preferably snap in place.
Leaving on a Trip? Shut Off the Water.
When you go on a trip and are not going to be back for several days or weeks, shut off the water supply to the home or building, and relieve the water pressure on the pipes by turning on both a hot and cold faucet for a while.
You would be amazed how many times pipes or washing machine or ice maker lines rupture while people are away on vacation! IMPORTANT: If you do this, turn off the breaker to your water heater or the gas supply valve if it is a gas heater.
If you do not, it could boil dry and be damaged or start a fire! Another thing that will help is to purchase heavy duty, stainless steel reinforced supply lines for sinks, washing machines, and toilets.
Some washing machine hoses are now available with an automatic valve that detects hose failure and shuts a valve automatically.
They are costly but much less than most insurance policy deductibles.
If you know a flood is imminent, gather items that can not be replaced, and take what you can with you.
Stack the rest in water resistant containers as high off the floors as you can (such as on a table or sawhorses with plywood).
Try to raise everything you can.
Use less valuable items to raise other more valuable items up higher.
Sacrifice the worn out old bed to save the brand new dresser.
Plastic 5 gallon paint cans will raise something over a foot off the floor.
Even a few coffee cans under a bed can make the difference between saving it and losing it.
Storm Damage Many times storms will hit without warning and damage a building severely, subjecting the contents to immediate damage.
There is not much you can do in that situation other than try to prevent additional damage once the storm is over.
That will be covered in a later article.
But again, storing items in closets in water resistant totes in closets goes a long way towards protection.
If you have to evacuate for a hurricane, it helps to get things off the floors, and then cover them with plastic sheeting or tarps, so that if the roof is damaged, there will at least be another measure of protection if water leaks in.
When trying to make decisions about what to leave and what to take, remember that insurance can replace most things, but old photos and art, family heirlooms, souvenirs, hand made items, and records can not be.
Focus on what can not be replaced.
Next article - What to do after a loss
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