Are you covered?

A few years ago, I came home from a routine grocery run to find that my garage door was left open (perhaps by myself, although I think my tenant with whom I share the garage was the culprit. Either way, it doesn't matter now.) I was horrified to discover that some very valuable drums that I had left in the garage while I ran my errand had been stolen. Horrified? I was downright heartbroken! However, I found out--to my surprise--that my homeowner's insurance actually covered personal property in the detached garage. My insurance company did me right and wrote me a very decent check to cover my loss. I even briefly considered naming my next child State Farm Barclay..."

However, many people aren't so lucky. Unfortunately many people find out after a loss or catastrophe that they were not covered for the damages incurred. I would encourage everybody to review their homeowner's policy and find out if it needs updating and adding or reducing coverage.

Here is a list of points to consider from the National Association of Insurance commissioners.

NAIC's InsureUOnline website offers the following tips:

• Add insurance coverage as you enhance the value of your home, and acquire expensive possessions, such as furniture, computers, stereos and televisions and other electronics. Keep in mind computers and other high-end electronics may require special coverage.
• Alert your insurance company when making any major home improvements that cost $5,000 or more. Update your homeowners insurance policy to reflect the new enhancements and prevent being underinsured.
• Maintain your property by clearing clutter and other dangerous conditions to reduce the potential for liability suits. In many states, you could be held legally responsible for the actions of anyone who drinks in your home and then has an accident in your house or after leaving it. Your policy should protect you against lawsuits due to these types of liability issues.
• Backyard items, such as a trampoline, pool, hot tub or spa may require you to increase your liability coverage through an umbrella policy.
• As you acquire more valuables -- jewelry, family heirlooms, antiques, art -- consider purchasing an additional "floater" or "rider" to your policy to cover these special items. They're typically not covered by a basic homeowners or renters policy.
• It's a good idea to make an inventory of all of your personal property, along with a photograph or video of each room. Also, save your receipts for major items and keep them in a safe place away from your house or apartment so you'll have them if you need to file a claim and substantiate value.