Whether a wildfire or an earthquake ravages your neighborhood, you must ask yourself “Am I financially prepared?”
“Insurance is the critical back-up plan that enables people to financially recover from a disaster,” said Mark Sektnan, the Property Casualty Insurers Association of America’s vice president. ”The first step to financial preparedness involves talking with your insurance agent or company to make sure you have the right coverage to rebuild.”
While wildfire damage is covered under a typical homeowners or renter’s insurance policy, there are specialized coverages to protect homes and belongings from earthquakes and floods. Depending on where you live, it’s vital to consider all the risks you face.
“Insurance empowers homeowners, businesses and communities to rebuild,” said the Insurance Information Institute’s President and CEO, Sean Kevelighan.
Financial Prep Tips
A home is generally your largest asset. Protect it. Federal catastrophe grants may not be enough to rebuild a home. Make sure your family’s financial safety net is in place, in case disaster strikes.
Tip 1: Conduct an Annual Insurance Check Up
Call your agent or insurance company annually to discuss your policy limits and coverage. Make sure your policy reflects the correct square footage and features in your home. Consider purchasing building code upgrade coverage.
Tip 2: Know What Your Policy Covers
The details matter. Understand if you have a replacement cost policy that pays to replace all your items at current market price or an actual cash value policy that takes depreciation into account and pays less for aged items.
Tip 4: Update Your Policy to Cover Home Improvements
If you make home improvements, be sure to call your agent or company to update your coverage.
Tip 5: Maintain Insurance
If your home is paid off, be sure to maintain homeowner insurance so you have enough money to rebuild your home.
Tip 6: Get Renters Insurance
Renters can lose everything in a disaster and be left to start over. Many insurers bundle renters insurance coverage with an auto insurance policy at affordable prices.