Have you ever gotten a letter from an insurance agent to come in and review your policy? You’ve never done it right? My friend and insurance agent, David, used to send them out, and one night over dinner, when I complained about the lack of personalization on these letters, he asked if it would make a difference. “No one” he said, “ever comes in to review their policies.” He then went on to tell me about someone who was under-insured and trying to collect on a claim, unsuccessfully.
“That’s the problem, I said, “we’re all afraid that if we put in a claim it won’t be paid, and then the insurance company will bounce our coverage.” Like many others, I was afraid  a review of my coverage would just end up costing my hundreds of dollars more.  Recently, my policies were reviewed by a different agency, and yes, it was going to cost hundreds of dollars more. We have never put in a claim for either of the homes we own, or the cars we drive, my credit score is excellent. So then we must be really upgrading our coverage, right? Wrong. My husband likes to drive fast, really fast. Five years ago, he got a speeding ticket, a big one, and now, no one wants to insure us for anything.
This is what’s wrong with the insurance system in this country, and especially the health insurance (although home-owners probably comes in a close second). If you use it, you get punished. If you need it, you can’t collect on it. Four years later, look at the victims of Katrina, how many of them have actually collected? If you collect on it, your policy gets canceled, and you pay even more, for even less. When did this become acceptable? The debate about health insurance continues, but the truth of it is, we need an insurance system that works. For everyone, always.

One thing that you can do, the next rainy day, start making a list with photos or videos of your house, and all your valuables. If you have receipts, make them a part of the package. Make several copies, and keep them in safe, accessible places, just in case.