Disaster Dilemmas: What DOESN'T My Insurance Cover ?!

We all woke up to some great news this week…the drought is over in the Bay Area! With 40% of the state out of the drought, California reservoirs are above average for the first time in 6 years. Snowpack in the Sierras has doubled, and in addition to digging out your snow gear – you may be digging out your insurance policy to see if those fallen fences, backed- up storm sewers or leaky roofs are covered.

While your best and first call should always be to your trusted insurance agent (did we mention we have a great one?!)…we wanted to summarize some tips from the National Storm Damage Center and the Insurance Information Institute. Even if your home and family made it out of the recent weather patterns unscathed, these are valuable considerations for an annual policy review.

***Please note that we are NOT insurance experts and we do not intend to be (we really like real estate!). The questions below are for informational purposes only and may not be applicable to your home or situation. This data is public information available from National Storm Damage Center and the Insurance Information Institute and deemed credible.

-          Don’t all insurance policies cover all types of storm damage?

• Homeowner policies range from basic coverage to broader and higher levels of protection. In general, insurance policies may cover hail, tornado and wind damage – while flood and earthquake incidents require additional coverage. Note that ALL policies have different coverage levels, limits of liability and deductibles.

-          Isn’t tree removal always covered after a severe storm?

• Many policies do include it – however, some require a separate policy. Better to ask before it happens!

-          Should I really worry about preventative home maintenance related to a storm if my insurance will cover the damage anyway?

• You’d be hard-pressed to find an insurance company who did not place reasonable responsibility on the homeowner to protect their residence from damage. It is unlikely your policy will over damage due to lack of maintenance, mold or infestation under preventable conditions.

-          Does homeowners insurance cover sump pump issues and sewer back-ups after a major downpour?

• Not necessarily…check with your agent! Typically these types of coverage are an added endorsement or separate product for an additional (and often nominal) fee. Note that homeowners are also responsible for maintenance of the sewer lateral, including any part that extends into the street or public right of way.

-          Does filing a claim always make sense?

• While insurance is designed to be there when you need it - there are times when you don’t! If the cost of repair is less than your deductible, as in many fence repairs – you don’t need (or want!) to report it. In addition, note that filing a claim (by accident) for something that isn’t covered may still show as a claim on your insurance history. This is where an education and relationship-based agent can really protect yourself and your home.

Cheers to staying warm and dry and drought-free,

Mark & Jason

Resources:

Bay Area Out Of Drought After Powerful Storms

http://abc7news.com/weather/bay-area-out-of-drought-after-powerful-storms-/1698849/

Storm Damage Insurance Faqs

http://stormdamagecenter.org/storm-damage-insurance-faqs.php

Which Disasters Are Covered by Homeowners Insurance?

http://www.iii.org/article/which-disasters-are-covered-by-homeowners-insurance

When (and when not) to file a home insurance claim

http://www.insurancequotes.com/home/should-you-file-a-home-insurance-claim