Protecting Your Personal Property Against Loss and Theft

In just the past year, three of my friends and one family member have been victims of thefts. These were not simply one or two items stolen, they were significant home burglaries or the theft of customized off-road vehicles. What is the common denominator in all these thefts? None of my friends had adequate insurance for their personal possessions.

In 2009, USA Today reported burglaries and robberies increased 39 percent and 32 percent respectively that year. Perhaps recession driven, burglaries seem to be on the rise. What can the business owner and those with significant assets do to protect themselves and their loved ones before a loss occurs? 

If you own a business, ask your insurance agent or broker who handles your commercial insurance to review your personal coverages. Independent insurance agents who represent a variety of insurance markets are always your best bet because they comparison shop prices and coverage to tailor a program designed specifically for you.

Jewelry is one of the most underinsured areas in the personal policy. In my family’s case, all the jewelry inherited from a relative was stolen and was not scheduled under the policy. While my relatives spent weeks combing pawn shops to look for heirloom pieces, they sadly never recovered any of their jewelry. Most homeowners’ policies limit jewelry losses to from $1,000 to $2,500. In many cases, this won’t replace one piece of jewelry in light of recent gold price increases. Obtain recent appraisals and pay the small additional premium to schedule your jewelry for better protection.

Consider an alarm. Many insurance companies credit homeowners with an alarm system, which can help defray the cost of the system. In two of the burglaries mentioned, thieves entered through the sliding glass door. Only shatterproof windows and doors and an alarm system can defeat this type of theft.

As crime increases, more and more homeowners turn to protection dogs to avert home invasions and burglaries. Will a dog help reduce theft? According to Zdenek "Hans" Blabla, owner of AlpineK9 in Wittman, Arizona, dogs are “the number one deterrent according to police. Dogs work mainly as a breed-specific deterrent. Burglars like easy prey and avoid residences with dogs. The most recognized breed is the German shepherd, which has excellent discrimination skills."

A fully trained protection dog costs between $5,000 and $10,000, but many of his clients find them invaluable as home protectors and companions. Blabla places many dogs, which he calls “family protection dogs,” with families as parents grow more concerned about home invasions and their children’s safety. "They don't want to be an 'easy target.' Our number one purchasers are single women and families with children whose husbands travel as part of their job. Many of our clients are women who were victims of violent crimes."

Make sure that all your toys, the ATV, the dirt bikes, the jet skis, and watercraft, are covered under your various policies, especially for liability in the event you injure someone. Also make sure if you customize your off-road vehicles, you establish a value with your carrier so that you aren’t surprised by the settlement value if you file a claim.

Your insurance agent can only protect you if he or she fully explores your family’s needs by developing a comprehensive risk profile. Sit down with your agent so that you know you and your loved ones have the most complete protection available. Review your coverage with your agent annually, more frequently if you make major purchases or face major life changes.