Should my policy cover tornadoes? The short answer is yes. If you own a home, you should have an insurance policy to cover the dwelling and its contents. Have you reviewed the policy lately? If not, read the preparation points suggested by the Insurance Information Institue.
The Insurance Information Institute (III) notes that policies most likely cover the home and its contents for wind damage which includes tornado damage. However, III suggests every homeowner review their policy and determine if it is enough to pay for all rebuilding and replacement.
During April 2011, deadly tornadoes stretched across southern areas destroying millions of dollars in property and killing over 300 people, mostly in Alabama. The storms left thousands homeless.
III reminds homeowners that most policies allow a cost for additional living expenses. This means if your house is not livable because of disaster damage, hotel bills, restaurant meals and other types of incurred expenses will be covered during the time the home is repaired or rebuilt.
What should you be checking in your policy?
- Repair / Replace / Rebuild - has your policy increased to fully cover expenses? If you have replacement coverage, it will fully rebuild the house and replace contents at current market value.
- Living Expenses - if you can't live in your house, how will you pay to live? Make sure your policy has expenses for additional living.
- Guaranteed Replacement Cost - you need this clause to get the house fully rebuilt after destruction
What is your best preparation for protection or claims?
- Inventory and document the contents. With a digital camera, you can take photos of expensive items, home business equipment, sentimental objects, and other priceless materials. There are a number of online websites where you can store photos at no cost. It is also a good idea to put the photos on a separate movable hard drive to be kept in a fireproof safe or somewhere away from your home.
- Develop an inventory list before tragedy strikes, while you can still view what is in your home. In any type of tragedy, it's difficult to remember all the details clearly.
- Create detailed descriptions of the items in the photos. It will be much easier to write detailed descriptions for contents, if needed.
- Should a natural disaster occur, get visual documentation of the property, providing it is safe to enter. Images help the insurance adjuster more quickly move the claims process forward.
- Your original inventory list will also make it easier to complete a list of damaged personal property. Include item description, purchase date or age, purchase cost, replacement cost estimate. If you have papers verifying the value of the property, it will also help an adjuster.
- Repairs - make the ones you can, such as covering windows, roofs or walls. This prevents more damage, and it will protect you from liability.
- Find a licensed contractor to provide estimates for permanent repairs. It should include in detail what repairs must be done, what it will cost and any replacement prices.
- If you cannot live in your house, keep accurate records of hotel and restaurant bills.
- Keep accurate records of any and all expenses you incur during the time your home is being repaired.
Regardless of where you live, you need to review your homeowner insurance policy to maximize coverage. If you live in a high-risk tornado, hurricane, or other natural disaster area, you must be especially diligent in reviewing current coverage and addressing the preparation points.
If I can help you with insurance aspects, or with buying your home in Blanchard, Edmond, Shawnee, or Oklahoma City, please contact me online, give me a call at 405-366-1111 or check out my website.
Comments(0)