Before getting a sump pump backup system installed, I spent way too much time on out-of-town vacations worrying about our basement back home while I knew that storms were pounding the area. Then the weather would turn nice and other things seemed more important. After finally getting the system installed, our vacations have been much more relaxed.
When the sun is shining, it's hard to envision stormier days, isn't it? But that's the best time to prepare, which is true in so many areas of life.
A sunny day insurance check-up
With all the financial articles I’ve read over the years, I must have heard about the difference between flood insurance and drain backup coverage at some point. I honestly don’t remember.
I took a little bit of interest in the topic during a policy review with our insurance agent shortly after buying a house when we lived in the Chicago area. But I didn’t become truly knowledgeable about the differences until the summer of 2010 when a tornado came close to our former home. With our neighborhood streets flooded and the sewer system completely overwhelmed, water had nowhere to go but up the basement drains in many people’s homes, ours included.
We only got about two or three inches of water in our basement. But that was enough to do $5,000 worth of damage. That’s when I truly understood the difference between flood insurance and drain backup insurance. And it’s when I told our insurance agent how grateful I was that he had encouraged us to have adequate backup coverage.
Today, with tornados having recently wreaked havoc in several parts of the country and hurricane season just beginning, is a good time to review your homeowner’s insurance coverage. Do you understand what your policy covers and does not cover? Have you purchased anything valuable recently that may need a rider?
A sunny day investing check-up
It’s easy to think of yourself as a good investor when the market is rising, and to assume it will continue heading upward. However, as we talk about regularly, no one can predict what the market will do next. That’s why, just as a periodic insurance review is helpful, a periodic investing review is helpful as well.
This is partly a strategy review exercise. Are you clear about how your strategy of choice is designed to perform and are you comfortable with it? This might be a good time to review some of the essentials about our Just-the-Basics, Fund Upgrading, Dynamic Asset Allocation, Sector Rotation, and 50/40/10 strategies.
This is also an attitudinal exercise. When you consider your season of life, risk tolerance, and chosen strategy, are you prepared to stay the course no matter what happens?
If the skies are clear in your part of the world today, enjoy the nice weather. But also take a few minutes to consider how prepared you are for stormier times.
