Manage your risks

Meet with your insurance agent annually or as needed to ensure your insurance coverage is adequate to protect you and your family against loss. Take into account any recent changes or additions to your property or surrounding area. 

Read and understand your insurance policies

Many people wait until after they experience a loss to understand their coverage. Unfortunately, these decisions cannot be undone and they will directly affect your ability to recover from a loss. Review your existing insurance coverage and figure out where your “gaps” are. Make sure you are aware of your policy limits, deductibles, and exclusions. Most homeowners policies have limits for jewelry, electronics, and other valuables.

Actual cash value vs. replacement cost coverage

Imagine that your roof is damaged in a storm and all the shingles need to be replaced. The cost to replace them is $10,000. The shingles are 10 years old, but they should have lasted for 20 years under normal conditions. Therefore, they have depreciated by one-half of their full value. 

Under an actual cash value policy, you would only be paid $5,000 for a loss, minus any deductible. Under a replacement cost policy, you would initially receive $5,000 for the loss of the roof. Then, after having it repaired or replaced, you would submit the bill to the insurance company for the balance, not to exceed the amount determined by the insurance company to return your roof to its original condition.

Plan for a future claim

No one ever knows for sure when a natural disaster will strike. There are several steps you can take to ensure that you will be fully compensated for your loss as well as make the insurance claim filing process easier and faster after a disaster. For example, establish an on-going system to document major household item information. Written documentation may include the following: Manufacturer, model, serial numbers, age, value when new. Documentation may assist in any future claims for property loss and income tax deductions. Make sure you keep this information in a safe place.

When choosing homeowners insurance, most consumers think more about the value of the home than about their prized possessions inside. When determining coverage needs, it is important to know all the "stuff" in your home that warrants special protection. Insurable items not only include luxury items like jewelry and art, but also fun purchases that support personal passions. Whether it is gourmet cooking gadgets, designer handbags or high-end electronics, what you invest in personal passions can have an important impact on your insurance needs. 

One of the best ways to make sure your possessions are fully protected is to document them with a home inventory. Here's how:

• Group your possessions into logical categories, i.e., by hobby, by room in your home, etc. 
• Your list should include celebration purchases like jewelry and art, as well as everyday leisure items such as televisions and guitars. 
• Don't forget items you use rarely such as holiday decorations, sports equipment, tools, etc. 
• Pull together copies of original sales receipts and/or appraisal documents. Also note model and serial numbers. 
• Carefully photograph or videotape each item and document a brief description, including age, purchase price and estimated current value. 
• Store your home inventory and related documents in a safe, easily accessible place online, on your computer or in a fire-proof box or safe deposit box. 
• Consider sharing a copy with friends, relatives and your insurance provider. 

You can download our home inventory packet (.pdf), or the free home inventory app for iPhone or Android smartphones. The app guides you through capturing images, descriptions, bar codes and serial numbers, and then stores them electronically for safekeeping. The app even creates a backup file for email sharing.

Other government resources:

• Federal Emergency Management Agency (FEMA) Disaster Assistance 1-800-621-FEMA (1-800-621-3362)

• The Minnesota Energy Assistance Program , administered by the Minnesota Department of Commerce may offer energy utility bill assistance or furnace replacement or repair (800-657-3710, MN only).

  Eligibility for the Minnesota Energy Assistance Program is based on income. For example, a household of four with an annual income of $46,056 or less would be eligible. 

• County Emergency Managers : list of counties at https://dps.mn.gov/divisions/hsem/contact/Pages/county-emergency-managers.aspx

• US Small Business Administration : low-interest loans to homeowners, renters, businesses & organizations in a declared disaster. 
  
  Minnesota District Office: Minnesota District Office  
  330 Second Avenue South Suite 430  
  Minneapolis, MN  
  Phone: 612-370-2324 

In addition, you can look to these community-based resources for information:

• The University of Minnesota Extension AnswerLine : for information on food safety, mold clean-up, and guidance on post-disaster financial decisions.
  
   1-800-854-1678
  

• Minnesota Farmer Assistance Network : MFAN provides business and financial guidance at no cost to Minnesota farmers and farm families facing economic hardship.
  
  1-877-898-MFAN (6326)
  651-201-6326 (local)
  mfan.mda@state.mn.us 
  

• National Flood Insurance Program 1-888-379-9531 or floodsmart.gov

• Disaster Distress Helpline : Substance Abuse and Mental Health Services Administration: provides information, support and counseling - 800-985-5990 or text TalkWithUs to 66746.

• Ready.gov : Emergency preparedness guidance from the U.S. Department of Homeland Security. 

• National Disaster Legal Aid : for low/moderate income individuals at http://www.disasterlegalaid.org/

• Lutheran Social Services Disaster Response : 1-800-582-5260 LSS services include long-term disaster case management, volunteer coordination, rebuild assistance, mental health supports, financial counseling.