When a hurricane comes calling
Hurricane season approaches. Are you ready?
In other words, do you have the right insurance and the right amount.
Start off by looking at whether you are at risk of flooding in a storm. A homeowner's policy doesn't cover flooding, something many people unhappily find out each year.
Start by plugging your address into the National Flood Insurace Program's Web site to see the likelihood of your neighborhood ending up under water someday. Mortgage companies usually require homeowners in high risk areas to have flood insurance. But even in areas with a low- to moderate-chance of flooding can suffer severe water damage.
The federal government offers flood insurance and you can buy it from a regular insurance agent. The maximum coverage is $250,000 for a house and $100,000 for contents. Renters, too, can buy it.
And if you have a very ritzy house, some private insurers also offer limited coverage that takes over once the federal coverage cuts off.
The Maryland Insurance Administration is also advising residents to make sure they have enough insurance. Make sure you are "insured to value," which means you are covered up to the actual amount it costs to rebuild your house.
Don't forget to insure contents. The Insurance Information Institute says you can get "actual cash value" which replaces your belongings minus depreciation. "Replacement cost coverage" costs 10 percent more but it will replace your property in current dollars.
Lastly, make sure you have an inventory of your belongings so you will remember what's lost if disaster strikes. You can download the Institute's software to create your own inventory.
A native of Vietnam, 