CALIFORNIA, USA — With fires in Maui, flooding in California and other natural disasters striking across the United States, many are wondering what they can do to protect their family, home and property. Insurance experts suggest checking your policy now to be fully prepared in an emergency.
Omar Ochoa is a lawyer specializing in insurance claims. He says most people assume they’re fully covered when they aren’t.
“[People] not understanding coverage is a big thing that I see,” he said.
He suggests people catalog their belongings now, before it’s too late.
“Catalog your personal property, jewelry, electronics, furniture, clothes, anything that you could lose in a disaster situation,” he said. “That includes knowing how old your roof is, for example, because the age of the roof could affect how much you recover.”
One reason to have insurance is to replace things like clothes, furniture or electronics that get damaged in these disasters or emergencies.
Ochoa says while it may be tempting to immediately begin cleaning up, make sure your agent sees your damaged belongings first.
“Don't throw those in the trash prior to an insurance adjuster looking at them, keep them in a box, keep them somewhere where they can be physically inspected, so that you can get coverage for those items,” he said.
He suggests people take a close look at their current policies so there’s no surprise in what isn’t covered when it’s needed.
Find out if you have a replacement cost value policy or an actual cost value policy.
A replacement cost value policy covers 100% of costs, minus your deductible for the repairs. An actual cost value policy will include a deduction for the age of your property.
“For example, if you have a roof that's 20 years old, it's a 30 year roof, it costs $10,000. To replace it, your insurance is only going to cover 1/3 of that,” said Ochoa.
Other resources for homeowners in natural disasters can be found through FEMA and the Small Business Administration Disaster Program.
