In the wake of the Los Angeles fires, many Californians who lost their homes are now facing a challenging process of filing insurance claims. Research indicates that nearly half of all U.S. homes face exposure to extreme weather events, leaving a significant proportion of homeowners potentially underinsured. Experts, including CBS News national consumer correspondent Ash-har Quraishi and Jennifer Gray Thompson of After the Fire USA, warn that up to 75% of U.S. homeowners might not have adequate protection, urging individuals to become well-versed in the details of their insurance policies.
The article advises homeowners to carefully review their policies, suggesting that one effective method is to calculate the insurance coverage per square foot by dividing the total policy amount by the home’s square footage. This figure should be comparable to the current local construction costs per square foot, which can be found by searching online with a zip code. If homeowners discover that their coverage is either nonexistent or insufficient, they should discuss upgrading their policy with their insurer—even if it means paying a bit more monthly—for better protection.
Additionally, the text highlights the importance of contents insurance, which covers personal belongings within a home. Homeowners are encouraged to create and regularly update detailed inventories of their possessions with estimated values, and to inform their insurance agents of any significant new purchases, ensuring full coverage of their belongings.
For those who suspect they might be underinsured, it is recommended to obtain written confirmation from their insurance company regarding the adequacy of their coverage. In circumstances where homeowners find themselves without sufficient protection during a crisis, the article provides contact information for FEMA and mentions that the Department of Homeland Security may assist in negotiations with insurance providers.