SACRAMENTO (CBS13) – Ahead of this storm, you might want to ask yourself if you have enough insurance. After the fires and the pandemic, home prices and the cost to rebuild are now much higher.
With incoming weather, some insurers say it’s the perfect storm for as many as 20-30 percent of Californians, who are underinsured.READ MORE: Suspect Arrested After Car Chase In Downtown Sacramento
Insurance agent, Harold Newbill, says, “that’s probably a modest assessment.”
The Department of Labor Statistics reported numbers from August showing that building materials are up 19.4%.
Additionally, the median home listing in Sacramento is nearly 14-percent higher, according to Realtor.com.
So how do you know if you have enough insurance?READ MORE: Wet Weather May Have Played Role In Davis Crash That Killed 1-Year-Old
Newbill says, “ask a contractor what the cost to build per foot that they’re seeing.”
In Sacramento, Newbill is seeing $200 to $250 per square foot.
“You can just do the quick math on your home and say – it’s this big, and it’s insured for 175 a foot – that’s probably not enough,” said Newbill.
Homeowners’ insurance usually covers damage from the sky, like rain damage. For damage from mudslides and flooding, flood insurance is usually required.
Adding protection today will usually take 30 days to take effect.MORE NEWS: Fantasy Football Start Or Sit Week 13: Elijah Mitchell Looks To Take Advantage Of Seahawks' Defense
“Think of all those things when you’re buying homeowners insurance so that, should disaster strike, you’ll be ok,” Newbill added.