Insuring Cash

Most home insurance policies cover the damages associated with theft. If your home is burglarized and your contents taken, you may be able to receive benefits equal to the actual or replacement value of those items. If you have cash or its equivalent in the home, that may be covered by your policy as well.

Cash and Equivalents: What’s Covered

If you have cash, coins, gift cards, and even foreign currencies in your home and they’re stolen or damaged by fire or other covered perils, your insurance company will cover the damages as outlined by your policy. Your policy deductible will still apply but your coverage for cash and its equivalents may have its own limit separate from your general contents limit. It's important to make note of the limits on coverage for cash to ensure that the money you keep on hand does not exceed what you can get reimbursed.

When considering coverage in terms of theft, a typical break-in is not the only situation that could result in stolen cash and its equivalents. There are many individuals who enter your home and have access to cash hidden inside; any of them could take it without your permission. This includes neighbors, party guests, service providers and even friends and non-resident family members.

What isn't Covered

If you lose or misplace your cash and it isn't stolen or damaged in an insurable incident, then your insurance company is not likely to pay the claim. Likewise if cash is stolen from you while you are away from home it may not be covered.

Another instance in which the damage to or theft of your cash might not be covered is if the cash was received through an illegal activity or while you operated an unreported business in your home. Your home insurance company must be aware of any business activities you operate in the home or your claim could be denied and your policy rescinded.

Proving the Existence of Cash

It's critical that you keep records showing that you obtained the cash that you report as stolen or damaged. You can use a bank statement or deposit receipt showing a cash withdrawal, ATM receipts, or possibly even a handwritten bill of sale. Your insurance company may, in the event of a theft, ask for a copy of the police report as well.

If you want to know more about how your Oklahoma City home insurance policy protects you, or you want to increase your limits, give us a call at Alexander & Strunk Insurance today.

Oklahoma City Home Insurance: Homeowners Insurance Post-Divorce

There are a lot of difficult decisions that must be made after a divorce. One often overlooked item that should be reevaluated is your home insurance policy. Because while you may be in the same home post-divorce that you were pre-divorce, there have probably been enough changes around the property that a home insurance overhaul is needed. 

Reduce deductibles: If you have been divorced from a wage earning spouse, then you will be adjusting to living on less income than you were before divorce. But even if you divorced a stay-at-home spouse, your expenses may be higher now that you need help filling the roles that you relied on your ex-spouse to fill. This means that you have some budget changes to make and it may also mean that the deductibles you have are no longer suitable. Finding a deductible that you can afford that also gives you a premium that works for your budget, is an important move. While high deductibles can reduce overall premiums, they leave a large liability on your shoulders that could pose a great financial risk if you can’t afford to pay them. 

Reduce contents limits: When your spouse moved out, he or she may have taken some of your joint property with them. The limits on the contents coverage for your home insurance policy likely includes the value of the items that they were awarded during the divorce, so reducing your limits to reflect the value of the items you kept is important. 

Liability limits: If your household income and savings was adversely affected by the divorce then you may want to consider raising the limits of the liability portion of your Oklahoma City home insurance policy or looking into an umbrella policy. With higher limits, you run less risk of having to pay out of pocket for liabilities because their expense exceeds your insurance benefits. 

Search for discounts: As you overhaul your coverage limits and deductibles, it’s a good time to take a look at discounts you may qualify for as well as those you don’t qualify for, but could by making some easy changes. Also, mention to your agent any risk reductions that have occurred since the divorce, such as the relocation of a dog whose breed made your home insurance more expensive. 

It’s important that you start looking out for yourself as soon as possible after a divorce. One of the ways you can do so is by working with your insurance agent to restructure all your insurance policies so that they fit your post-divorce budget, needs and risks, and not your pre-divorce life.

Make sure you have the best possible option for your Oklahoma City homeowners insurance policy with Alexander & Strunk today!