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Whether it's a hurricane, tornado, ice storm...or just a bad thunderstorm... you want to know the money you spend for insurance is going to actually do something for you.

GREENSBORO, NC -- Hurricane Arthur may be gone, but the storm washed up good money lessons for you to learn.

Whether it's a hurricane, tornado, ice storm or just a bad thunderstorm, you want to know the money you spend for insurance is going to actually do something for you. Sometime this weekend, check your insurance policies -- just to make sure they are up to date. Then see if you have replacement coverage or if your insurance only covers actual cash value. Al Barbour of Barbour tax services explains the difference.

"You may buy a couch 2 or 3 years ago and spent $800 or $900. Today that couch may only be worth $600. If it was destroyed the company would only pay you that much. But if you had the replacement provision in your policy what they would do is replace the cost of the couch for what the value is today."

Replacement coverage does cost more but it may be worth it to you. If you don't have it, you can ask your insurance company to give you a quote. The difference in price could be just $10 a month more.

Al recommends you put your most important documents in a centralized location whether it's a storm or family emergency you need them. On that "most important" list: insurance policies-- that's home, vehicle, health, along with your vehicle registration, bank accounts and your real estate deeds.

"When something happens like a storm or a family emergency, you want help and you want it to be taken care of as soon as possible. And if you have the documents you have the proof of what you have to make your claim."

Al recommends creating secure storage. Buy one of those small hand held safes that are fireproof, waterproof and can be locked.

2WTK put several safes that claimed to keep your documents in good condition to the 2TEST. Check out the Firesafes 2Test Results.

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