HOUSEKEEPING
Disaster-proof your finances
In addition to steps you take to protect your family from catastrophe, consumers should make sure their finances don’t get washed away by disaster too. Unlike much disaster-planning, the financial steps are tough to do in the last minute.
Experts suggest starting with an insurance review to see what’s covered by your homeowner’s and renter’s coverage. Call your agent about flood or earthquake insurance if they are appropriate for your area, and make sure your coverage is up to date with inflation and the value of your possessions. Next, inventory those possessions, either on video or on paper. Gather your key documents; while originals belong in a safe-deposit box, copies belong in a small “evacuation box.” Finally, top that box off with some petty cash, and you will be better prepared to deal with whatever nature throws you.
SHORT COURSE
Appraisal
When a property is sold, taxed, insured or financed, an appraisal of its value generally is required. The appraisal is a third-party professional opinion, usually given in writing, of the market value for a property – such as a home or business – or an asset, such as jewels.
In general, appraisals are needed for properties or assets where the market price of the item is not easily determined. That is why, for example, a gold coin or ingot containing an ounce of gold would not necessarily require an appraisal to be insured, but a valuable ancient coin, for which there is no fluid current market price, would require an evaluation.
