It is important to know exactly what your homeowner's insurance policy covers. Many people do not check to ensure their insurance coverage is adequate until after a disaster happens when it is unfortunately too late. To avoid extra costs and stress in the event of a fire, flood, or other natural disaster, be sure to discuss with your insurance carrier exactly what your homeowner's policy entails. Mr. Restore has seen hundreds of disasters and understands exactly what your policy needs to contain to be sure you are fully covered and to make for a smooth recovery.
Appropriate Coverage to Rebuild
Starting off, it's important that your insurance policy covers the appropriate amount for rebuilding your home based on today's current replacement costs. In other words, if your home is worth $400,000, you need to ensure you have at least that amount in coverage in case of a total loss from a fire or a different disaster. Not having enough means that you will not have the appropriate coverage to buy a similar home. Keep in mind the price that you paid for your home may not be what it is worth today. Some things to consider when factoring in the cost of rebuilding:
- Square footage of your home
- Style of the exterior of the house (colonial, modern, ranch)
- Type of roofing
- Cost of local building materials
- Special features (arched windows, fireplace, etc.)
Another important thing to consider is the coverage you have on the contents within your home. This covers all of your important possessions, including furniture, art, rugs, appliances, clothes, and other valuables you may own. Many policies come with a standard contents coverage of about $1,000-$2,000, which will not be enough for most homeowners.
We recommend putting together a list or a home inventory of the valuable items in your home, the cost to replace them with a similar item, and then tallying up the total. It would be prudent to have content coverage exceeding that amount. If you have valuable, expensive items, such as a Picasso painting or luxury rug, but have the standard contents coverage of $2,000, insurance will only send you a check for $2,000. When in doubt, consult with your agent or ask our experienced professionals for advice. Creating a home inventory will be helpful during the claims process and will ensure you have the appropriate coverage for the total cost of your possessions.
Natural Disaster Coverage
Many standard policies only cover very specific types of natural disasters and exclude other types of disasters. Look over your current insurance policy for natural disaster exclusion clauses, which will list what the policy will not cover. Standard home policies will cover lightning, hail, fire, and explosions. General policies often do not cover disasters such as flooding or damage caused to your home by the wind. Standard policies also will not cover damage caused by earthquakes or by mold, a very common culprit for home damage. Be sure to discuss with your insurance carrier adding an additional policy that will cover these natural disasters as well.
Mr. Restore has worked with all insurance carriers and has over 50 years of experience dealing with insurance agencies. When you contact us for your restoration needs, we will walk you through the entire claims process. We work hard to ensure that your recovery is a smooth transition back to normal.