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FRIDAY, MAY 06, 2011

Personal Property Coverage & Electronic Property

Property InsuranceWhen you think about the personal property coverage in your home insurance policy, you probably conjure images of your furniture, clothing and electronics. But did you know that many policies also consider your digital data to be personal property?

While this might have been unheard of 20 years ago, these days many people have digital data that costs money to buy and has value that can be reimbursed when lost in an insurable incident. This includes:

Downloaded Software - After buying the software your home insurance policy will likely consider its value as part of your claim against the personal property coverage in your policy. In order to prove purchase, be sure to keep all paper and electronic receipts in a place that will be protected from fire, water and other hazards. Examples of downloaded software include games, tax and accounting programs and word processing programs. And the software needn’t just be on your computer; items stored on discs, external hard drives or thumb drives can also be included as long as you have proof of the value.

MP3s - Many people purchase digital music files in the form of MP3s and download them directly to their computer, laptop or music player. While intangible as downloaded software, MP3s still have value and, since you paid for them, are still considered a possession. As with downloaded software, make sure that you retain some receipts for your MP3 purchases so that you can include them in insurance claims.

Software on discs - Not all software that is purchased is downloaded. Some of it is still bought in a store and has a tangible disc for installation. Be sure to keep records of these purchases as well so that you can include them in claims.

It’s a new day and age in digital purchasing, but the old fashioned advice to save your receipts still rings true. Luckily, many online companies are able to send you copies of receipts after an insurable incident. However, it’s never a bad idea to reach out now and start gathering these receipts together so that you don’t have the additional burden of tracking them down when you make a claim. Also, be sure to consider their value carefully as it might cause you to increase your limits.

Be sure you know what's covered with your Oklahoma City Insurance from ECI Agency today!

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