Many people are surprised to learn that new insurance policies typically come into effect after a 30-day waiting period. It’s important to know if your insurance covers floods and other disasters, even if you don’t live in a flood zone.
Is your insurance covering the damage?
If you are not sure of your insurance coverage, review it now, before disaster strikes.
Start by reviewing your policies. Discuss any concerns or questions you have with your insurance agent before disaster strikes. Additional coverage might be needed.
How about renters insurance? You can purchase renters insurance for your personal property at a very reasonable price. If you do not have renters insurance, ask your vehicle insurance agent about adding it. A recent flood recovery research study found that renters typically were not eligible for many government recovery programs.
It is important to keep in mind that few insurance policies cover all damages. Most homeowner policies don’t cover flood damage, so you may need to purchase additional coverage. Check out the National Flood Insurance Program website for more information.
A typical tornado damage will include some coverage for “fire or lightning damage” and/or “wind and hail damage”. Additional coverage may be necessary.
How are damage claims paid?
Ask your insurance agent whether claims on your policies are paid based on replacement cost or current market value. Does the reimbursement cover the entire replacement cost or just a certain percentage?
Regardless of how claims are paid, you should prepare yourself by keeping a household inventory.
- Make a list of your property, take photos, and/or videotape it.
- You should store a copy of this inventory somewhere outside your home, such as with a trusted family member. Your claims process will be much easier if you prepare a complete household inventory.
Checking your property’s insurance will help you be better prepared for disasters.