FOR IMMEDIATE RELEASE
June 10, 2008
Contact: Jason Moon 517-335-1700

LANSING – This weekend’s violent storms across the state serve as an important reminder for consumers to be prepared for the natural disasters that accompany the spring and summer seasons. Today the Office of Financial and Insurance Regulation (OFIR) urged Michigan citizens to take a number of valuable steps to prepare them for a possible natural disaster. According to new research by the National Association of Insurance Commissioners (NAIC), nearly half of U.S. consumers are insufficiently prepared – in terms of their insurance coverage – to deal with potential losses in a disaster.

“A comprehensive list of your belongings and their value will help you file an insurance claim after a disaster,” said OFIR Commissioner Ken Ross. “Creating an inventory and storing it in a safe location away from home is one of the most basic — and most effective — disaster preparedness steps anyone can take to help protect themselves and their financial future.”

OFIR urged Michigan consumers to take these steps to prepare for a possible natural disaster.

• Take an inventory of your valuables and belongings. This should include taking photographs or a video of each room. This documentation will provide your insurance company with proof of your belongings and help to process claims more quickly in the event of disaster.
• To enable filing claims more quickly, keep sales receipts and/or canceled checks. Also note the model and serial numbers of the items in your home inventory.
• 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. These types of items typically are not covered by a basic homeowners or renter’s insurance policy.
• Remember to include in your home inventory those items you rarely use (e.g., holiday decorations, sports equipment, tools, etc.).
• Store copies of all your insurance policies in a safe location away from your home that is easily accessible in case of disaster. You may want to store your policies and inventory in a waterproof, fireproof box or in a safe, remote location such as a bank safe deposit box.  Consider leaving a copy of your inventory with relatives, friends or your insurance provider and store digital pictures in your e-mail or on a Web site for easy retrieval.
• Know what is and is not covered by your insurance policy. You might need additional protection depending on where you live. Make sure your policies are up to date. Contact your insurance provider annually to review and update your insurance policy.

The NAIC’s national survey revealed a significant lack of preparedness among consumers in documenting their belongings. Nearly half – 48 percent – said they did not have an inventory of their possessions. Of those consumers who reported having a checklist, 32 percent had not taken any pictures and 58 percent had no receipts validating the cost of their possessions. In addition, 44 percent of respondents acknowledged that they had not stored their inventory in a remote location.  

The NAIC survey also found that the majority of consumers do not have the coverage necessary to protect themselves from specific types of losses that are not reimbursed under standard policies:

• 65 percent do not have flood insurance.
• 56 percent do not have insurance for a water line break.
• 55 percent do not have insurance for a sewer line break.

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