BBB (Better Business Bureau) recommends consumers take some basic preparedness steps to help immediately following a catastrophe and offers advice for working with insurance adjusters to ease the stress and anguish after disaster strikes.

Every year hurricanes, tornados, violent thunderstorms, flooding and fires wreak havoc across the country. In 2006 alone, there were 33 major catastrophes affecting hundreds of communities across the U.S., which resulted in 2.3 million claims for losses totaling $9.2 billion, according to the Insurance Information Institute.

Even if you don’t live in tornado alley or in a flood plain, BBB recommends you take some basic preparedness steps to help you immediately following a catastrophe and offers advice for working with your insurance adjuster to ease the stress and anguish after disaster strikes.

Preparing for a Disaster

--Create and maintain an inventory of your personal possessions. This includes taking pictures or creating a video, as well as keeping receipts for major items. --The inventory should be saved in a safe place outside the home, such as in a safe deposit box at your bank.
--Make sure you carry your policy numbers and contact information for your insurance company with you at all times.
--Read your homeowners policy carefully, including all the fine print, so you’ll know what is and isn’t covered. And make sure you know when the deadline is on filing claims.

After a Disaster

--Contact your insurance adjuster immediately. Not only does this get the ball rolling on the claims process, but you might be eligible for loss-of-use benefits, which means you could be reimbursed for hotel costs, food, and other living expenses while your house is unlivable.
--Document the damage to your property and possessions thoroughly; take pictures or video if possible. Go from room to room and create a detailed account of your belongings.
--Make any minor repairs to limit further damage to the home. You may be liable for damage that occurs after a storm has passed, so make temporary repairs, such as boarding up broken windows or throwing a tarp over a leaky roof.
--Keep all your receipts spent on supplies and living expenses for future reimbursement.
--Do not make any permanent repairs until you get approval from your insurance company. Your insurer might not fully reimburse you for permanent repairs made without their authorization.
--If your house was destroyed by a major disaster, you may qualify for additional assistance when insurance doesn’t cover all of your losses. Check with the Federal Emergency Management Agency at www.fema.gov for more information.

At time of loss, for example, a fire, it’s an emotional time. You’re dealing with the loss of your possessions, and it’s difficult to reconstruct, at the top of your head, everything in the room.

The question is whether or not a home inventory helps with home insurance. It can, Home insurance is primarily determined by the value of the structure and replacement cost of the structure. Home insurance deals specifically with the house itself.  The contents are normally insured as a percentage of that structure cost.  If the house is insured for $100,000, the insurance will provide 80 percent of that for the contents.  The home inventory is a “litmus test” to determine if that 80 percent is correct.

What is important to realize is that all home owner’s insurance has sub-limits for theft coverage, specifically for jewelry, guns, furs and silverware.

The home inventory should be backed by appraisals. If jewelry is stolen, and only one piece of the jewelry, such as an engagement ring, is worth $4,000, and only $3,000 of the stolen jewelry is covered by insurance, then the homeowner has lost $1,000, not including the other stolen items.

While a home inventory is not going to protect against theft, it will give documentation when the homeowner starts to settle with the insurance company. It provides the proof, the memory jog and some stress relief, taking away the pressure of remembering what was in each room.

After this winter's storms, now is the time for homeowners and renters to prepare an inventory of all of the items in their homes, according to state and federal officials. The U.S. Department of Homeland Security's Federal Emergency Management Agency (FEMA) and the Washington Emergency Management Division (WEMD) remind people that with a home inventory list, an insurance agent can provide owners and renters with a policy that matches their needs. In addition, after a disaster, an inventory can help provide proof of personal property loss.

Government and industry officials also recommend taking photos of the outside of a home as well as all contents, and to store these photos together with the inventory list in a safe place away from the house.

"The complete inventory, including photos, may be one of the most valuable investments for peace of mind we will ever make for ourselves and our families," said Gail Haubrich, FEMA individual assistance housing supervisor. "If a catastrophic event disrupts our homes and surroundings, a home inventory will eliminate the need to piece that information together in the aftermath of the event."

Property owners and renters should schedule an appointment with an insurance agent to discuss the best way to protect their property.

Property owners may be required to have both hazard and flood insurance, each available commercially. Renters should also consider insurance to protect personal belongings. Standard hazard policies may require additional riders for items such as collectibles, jewelry and/or damage from sewage backup.

Disaster assistance from FEMA and other agencies cannot provide the extensive protection individuals can get from insurance. FEMA assistance is limited and designed primarily to get disaster victims on the road to recovery.

People with expensive jewelry, tools or electronic devices should know that most policies have separate limits on coverage for more than a dozen items, including computers and cash. It's easy and inexpensive to buy extra coverage for your racing bikes or silverware collection.