Being prepared is the key to a successful recovery following disaster. Those that plan before disaster generally incur less damage and they are better equipped to deal with the damage they received following the event.
Being knowledgable about your home’s insurance policies is on of the best things you can do to protect your financial well-being in the even that a devastating disaster strikes your home or business. Unfortunately, it is very common for homeowners to not know what their policy covers and what it does not. To make matters worse, many people do not even know the questions they should be asking about their policies.
To make things easier, we’ve compiled a list of five of the most important questions that you shoudl ask your insurance provider to ensure that you are properly covered in the event that a catastrophic event impacts your property.
1. Is Flood Damage Covered Under My Policy?
Many people assume that if a hurricane strikes, their home will be covered, but this is often not the case. The majority of the damage a hurricane inflicts comes in the form of flooding rains, not wind. While wind damage from a hurricane may be covered by your insurance policy, flood damage is not. Flood coverage is backed by the Federal Government and require a separate policy.
Flood coverage is vital for all property owners, regardless of location. Floods can occur anywhere at any time, even if you do not live near a body of water or an area that has a history of flooding.
2. Is My Insurance Policy a Replacement Cost Policy?
Replacement cost insurance is a type of insurance policy that replaces damaged, lost, or destroyed real esate and personal property with new items. Other insurance policies may not cover the cost for new item replacement. Under a replacement cost policy, new items of the same kind and quality can be purchased with insurance funds as long as the new items are used for the same purposes as the items lost.
3. What Are the Limits of My Coverage?
Coverage amounts can vary for different items. Your policy may only cover items that have been specifically specified in your policy and appraised for value. For example, if you lose jewelry as a result of catastrophic storm damage, you may not be reimbursed the full amount (or anything at all) if you have not specifically included these items in your insurance policy.
It is vital that you find out what is covered and what is not before disaster strikes. If you wait until after the damage has already been done, you may not be eligible for reimbursement.
4. What is My Storm Damage Deductible?
Property insurance policies often have at least two deductibles. At a minimum, you will have two; one for standard claims and one for storm damage. Standard claims cover events like fire damage, vandalism, and theft while storm damage deductibles are for property damag resulting from hurricanes, tornados, wind storms, hail storms, etc.
Most people know the deductible amount for standard claims, but inaccurately assume that their deductible is the same even in the even of severe weather. Storm damage deductibles are generally a percentage of the property’s total value. For example, if you have a property value of $500,000 and your deductible is 1 percent, your deductible will be $5,000.
5. Are Living Expenses Covered by My Policy?
What happens if your home or business is destroyed and you must move to temporary location? Some insurance policies will cover the expense this brings, while others do not. Always ask your insurance company whether these expenses are covered. If they are not, it could cost you thousands of dollars while you are waiting for your property damage to be repaired.
Storm Damage Repair From Action Restoration
If you need storm damage repair in the Gulf Coast region, contact Action Restoration today! Whether you have experienced damage from flooding rains or damaging winds in Florida, Texas, Alabama, Louisiana, or Mississippi, Action Restoration is fully trained and licensed to help you with your storm damage restoration needs.