Spring time weather is here and with it comes the green grass, beautiful flowers and budding trees. But there is something else that spring brings that is sometimes a little less desirable, spring storms. These storms can be very violent and damaging. Whether it is a tornado, hail storm, or torrential rains, these storms bring massive potential for damaging our homes and property. This is a great time to review all your insurance coverages and make sure you won’t have any surprises should something occur. When damage occurs to customers’ property, the biggest concerns mentioned are coverage limits, deductibles, and is the property covered. Don’t let yourself be blindsided by lack of coverage or high deductibles.
The following is a list of suggestions you can do and coverages you should talk to your agent about to make sure you are fully covered for any surprises:
Coverage B:
This is for all “other structures” detached from your home. This includes decks, fences, outbuildings, and sheds. It’s typically 10% of your dwelling coverage (coverage A) which is your home’s coverage amount. For instance, if you have a home with a $200k replacement cost, then coverage B would be $20k. I notice all too often that this number is too low, especially when it comes to outbuildings. Many people have 1 or 2 outbuildings, including barns or sheds. Think about how much it would cost to replace the outbuilding. As we all know, $20k wouldn’t cover a lot. Make sure and talk to your agent and let them know if you have any structures not attached to your home. They will be able to advise you on your coverage options.
Coverage C Personal Property:
The biggest issue here is that people do not recall what they had. There is no list, there are no pictures and this the truest when it comes to items in a garage, barn or outbuilding. If you were to have a tornado hit your home and blow apart your garage would you recall what tools you had inside? The Claims Adjusters will need:
A list of tools
The age of the tools
The cost to replace them
Once the claim is closed you cannot add to it. If you find other tools are missing a few months later, you would then have to open another claim which can cause another issue. Typically, you will get dropped at 2-3 claims. You must be smart when utilizing this. Also, what is your deductible? If it’s $1000 then it probably makes sense to file a claim if you had a large enough loss, but if your deductible is say 1%, do you know what that means? 1% refers to what your replacement cost of your home is. So, if your home has a replacement value of $200k then your deductible is $2000…now what does that look like when your home has a more realistic replacement value of say $350k… yes, your deductible is $3,500. This means you will be responsible for the first $3500 of the claim. If the lost tools value was $4000, you would only receive a check for $500. This claim could also raise the rate you pay each month. It is important to talk to your agent before making any claims. They will be able to advise you on your options and guide you through the process.
Roofs
If a storm was to damage your roof, the age of the roof is considered and is pro-rated. You will also have a deductible to meet. What happens if you have enough damage and your roof needs replaced? Here is an example of what that could look like. Let’s say the cost to replace the roof is $10k, your roof is 10 years old and your deductible is $2k. The insurer looks at the longevity of your roof. Was it a roof that was supposed to last 15 years? Whatever the roof life expectancy was, the insurer will subtract the life expectancy from the years it has been on the house. This will be the pro-rate that they use to determine what they pay.
Example:
$10,000 replacement costs for the roof
15-year life expectancy on the roof
Minus $666 per year x 10 years for wear and tear (remember it’s not a new roof)
That equals $6,660
Now minus the $10,000 to replace
That equals $3340 minus your $2k deductible. This means you will receive a check for $1340 from the insurance company. That’s a lot of money out of pocket to replace your roof.
Big reminder, do not just let anyone on your roof! There are storm chaser-companies that come from out of state that are looking for work. They will start knocking on your door and are typically very kind. They offer you a quote, complete the work and then go back to the state they are from where you cannot get assistance with warranty work. Many times they do very shoddy work. You need to call your Agent first and ask for some referrals. This truly is the first step to starting the claim process.
- Call your Agent first (not the 1-800 number. They just do data entry. You need someone who knows you to walk you through the process)
- Typically, we will refer 2-3 roofing companies, have you obtain bids then call us back. From there we help make a decision about filing a claim
*Once a claim is open it hurts your insurance score even with no pay out. Another important tip, call your agent with any questions about damage. If you call the claims number or contact the insurance carrier directly with any questions on damage, a claim will be opened automatically, even if you do not state that you want to make a claim or receive any money.