Understanding Your Home Insurance Coverage in the Face of Natural Disasters
With the increasing frequency and intensity of natural disasters, it's crucial to ensure you have adequate insurance coverage to protect your home and belongings. Thousands of Californians recently faced the devastating reality of underinsurance after the Los Angeles fires, highlighting the importance of understanding your policy and coverage limits.
To determine if you have sufficient coverage, start by reading your policy and calculating your coverage. Divide your policy's coverage limit by the square footage of your home. This figure should equal the average construction cost per square foot in your area, which you can find online by searching for "construction cost per square foot" along with your zip code.
If you discover you have no protection against natural disasters or are underinsured, contact your underwriter and request the maximum coverage possible. While it may increase your monthly premium, it's a crucial investment in protecting your financial security. Don't hesitate to ask for the maximum coverage due to fear of being dropped.
Your home insurance policy should also cover your possessions, known as contents insurance. Create a detailed list of all your belongings with their estimated values, updating it annually and informing your agent about any significant purchases. Many people are unaware that contents insurance is included in their policy, so be sure to check your coverage.
If you find yourself underinsured during a crisis, contact the Federal Emergency Management Agency (FEMA) at 800-621-3362 or the U.S. Department of Homeland Security for assistance. If your insurance provider insists you're adequately insured but you believe otherwise, request written confirmation of their assessment.
For more information on the risks of being underinsured, visit the United Policyholders' website at upheld.org. This non-profit organization provides valuable resources and guidance on navigating insurance issues.
By taking these steps, you can ensure you have the necessary coverage to protect yourself and your family in the event of a natural disaster. Remember, it's always better to be safe than sorry.