Disaster Prepared???
Okay, you have your To-Go bag all packed and a list of essential things to take with you if you need to evacuate, you might even have downloaded all your important documents to a safe place. You're all set for any disaster, right?
Well, perhaps, but not so fast. When was the last time you reviewed your homeowners or renters insurance policy? After the recent fires in LA, CBS reported that 2/3 of homeowners were uninsured or underinsured. Are you one of the majority who is currently underinsured? It might be a good time to check.
The Declaration page of your policy will have four main categories related to your home:
- Dwelling. This includes everything that wouldn't fall out if your house were turned upside down. The Declaration page will show a total amount for dwelling replacement. The average per square foot cost to rebuild a basic home in California is approximately $400. Multiply the total square feet of your home by 400 to get an approximation of the cost to replace it. Then check that number against the number on your policy. If you rebuild with upgrades such as hardwood floors or high-end appliances, your per square foot cost will be higher.
- Separate Structures. Do you have any outbuildings, fences, or hardscape? The total amount shown on the Declaration page for all separate structures should match the replacement cost of these items.
- Personal Property. This includes everything that would fall out of your home if you turned it upside down. Many policies put a limit on the amount you can claim for expensive items such as art and jewelry, these can be insured separately. It's a very good idea to photograph everything in your home including the contents of cupboards and drawers. Keep these photographs in a safe place.
- Loss of Use. This is the total amount the insurance company will pay for any expenses incurred when you cannot live in your home while it is being repaired or replaced. It will also include the maximum time they will pay for living expenses.
It is prudent to double check your policy every few years, particularly if you have done any remodeling or added exterior structures.
Don't be one of the many who have to deal with the reality of being underinsured while in the midst of a crisis.
Eileen Haflich, and
Your St. Andrew Green Team
