Holidays Bring Out Insurance Needs

Perhaps the last thing on your mind during the holiday season is an increased risk to your personal property, but along with the holiday cheer, this season brings great increases in incidents of theft, fire, and accidents.

Given these risks, the holiday season is an appropriate time to dust off the old insurance policy to ensure that you are adequately protected from having your holiday season destroyed.

During the holiday season, many homes are destroyed or damaged by fires. Tragically, in all too many fire situations, people find out too late they are inadequately insured. Although most insurance policies provide coverage for fire to cover the actual value of items damaged or destroyed, this coverage will be inadequate to replace the damaged furnishings with new items due to depreciation.

For example, televisions, stereos, furniture, clothing and other property items of value all depreciate with age. Anyone who shops the garage sales knows that used items sell for much less than the same new items in Nordstrom.

If you want to ensure that you are adequately protected, ask your insurance agent whether you have "guaranteed replacement" coverage, or whether your policy will pay you the depreciated value of your personal items.

Many renters are not aware that their landlords' policies may not protect tenants' furnishings, which could be destroyed or damaged in a fire. Renters should obtain fire insurance for their own personal possessions to ensure that the television is replaced when the Christmas tree catches fire.

I have seen too many renters suffer catastrophic losses simply because they had no fire insurance. A renter's insurance policy could be the difference between a merry Christmas and disaster.

Unfortunately, the Christmas season also sees a dramatic increase in burglaries. Again, make sure your insurance adequately covers your possessions. Inventory all items in your home so that you will have a record to present to your insurance adjuster should your home be burglarized.

Another good way to inventory personal items is to photograph or videotape them right in your home. This helps you not only in case of a burglary, but in case of fire losses to establish their existence.

Review your insurance policy for coverage for special items in your house. Most homeowner and renter policies have limitations on coverage for personal items such as jewelry, computers and other similar possessions. If you have these special items in your home or apartment, additional insurance coverage usually is available to protect you on losses.

One final insurance concern you should be aware of during the holiday season is the increased number of accidents and injuries around the house. While you are looking at your fire- and theft-insurance coverages, also examine your liability-insurance coverage to make sure it is adequate to protect you from the risks of personal injury and property damage that could occur at Christmastime.

Jim Testa is senior partner at the San Marcos-based law firm of Testa & Associates and may be reached at 760-891-0490