(NAPSA)—Whether you're a homeowneror renter, insurance providescritical protection. Homeowner’s insurance pro- tects your home’s physical structure and your personal property. In contrast, renter’s insurance only protects your personal prop- erty. Everyone—homeowners and renters—needs liability coverage to provide financial protection in case others are injured on your property or by youractions. You have the option to insure your home and belongings for either their replacement cost or their actual cash value. Actual cash value is the amount it would take to repair your home or replace damaged possessions after factoring in depreciation. Replacement cost is the amountit would take to repair your home with materials of similar kind and quality, or to purchase new possessions without deducting for depreciation. It’s a good idea to make an inventory of all of your personal belongings and save receipts for major items, along with a photograph or video of each room. Store copies of the documentation in a safe-deposit box or another off-site secure location in case your homeis destroyed. Following are some helpful considerations provided by The National Association of Insurance Commissioners (NAIC), a volun- tary organization of state insur- ance regulatoryofficials: Important Considerations If you have expensive valuables —such as jewelry, antiques or art—you'll probably want to pur- chase a “rider” to your policy, as these items are subject to coverage limitationsin basic policies. Damage to your home or belongings caused by flooding is NOTtypically included in a home- owner’s policy. If you live in an area prone to flooding, inquire about flood insurance through the federal government’s National Flood Insurance Program (NFIP). Your insurance agent can help you obtain flood insurance. InsuranceTips for Different Life Stages At different stages, you’re likely to have different insurance needs. For instance: Young singles who are sharing an apartment with unrelated roommates each need their own individual renter’s policy to protect their own possessions. Young families that add a swing set or trampoline for their kids should consider additional liability insurance. Established families that may be remodeling or building an addition should update their homeowner’s policy to reflect these enhancements. Seniors should ask if they are eligible for discounts. And if you've just paid off your mortgage —and your homeowner’s insur- ance was previously paid through your mortgage company—be sure to assumedirect responsibility for the premiums so that your policy doesn’t lapse. Remember, before you sign an application for insurance, take a few minutes to stop, call your state insurance department and confirm that the companyis legitimate and authorized to sell insurance in yourstate. For more useful information about insurance, visit the NAIC’s new consumer education Website called Insure U Online at www.InsureUonline.org.
