Earthquakes, hurricanes and flooding?
I must be talking about the West Coast, Midwest and Mississippi Valley regions. Before August and September of 2011 if I talked to clients about earthquake insurance
and flood insurance, people would look at me like I had two heads!
August and September changed all that! I don’t know about you but I am tired of cleaning water out of my basement. Fortunately for me, I had only a few inches each time and my basement is not a finished basement.
Did you have the proper coverage for all your storm related problems? Can you find the protection you need? Did you check with your agent?
Now that the dust has settled a bit, it is time to review your homeowner’s insurance with your agent. Here is a list of the most frequent claims our clients reported from the recent storms and flooding:
- Wind/Fallen tree damage
- Sump pump failure and water backup
- Cars flooded
- Roof damage
Another issue that pops up during a named storm is your deductible. There is an insurance company is Pennsylvania that puts a “Named Storm” deductible on homeowner’s policies. That deductible can be 2% of your “coverage A”. That means if you have damage to your house from a “Named Storm” like Irene, you may need to pay the first 2%. If your house is insured
for $250,000 that means your deductible is $5000. Does your policy have this “Named Storm” deductible?
This type of “Named Storm or Hurricane” deductible is common in coastal areas or areas hit by tornadoes. We may see more companies adding this type of deductible in Pennsylvania. However, what many people do not know is they can lower that deductible or eliminate it and just have a normal $500 or $1000 deductible. Sure, it will cost a few dollars more but it may be worth it.
Call your agent today to discuss your homeowner’s policy and to make sure you are covered for the above list of claims.
By the way. . . the three flooding claims that were reported to our office were in “B” or “X” zones which are not considered 100 year flood areas and do not require the purchase of flood insurance. All three clients were extremely happy they purchased the flood insurance even though they were not required to have it. One of their neighbors who did not have flood insurance wants us to quote them.
Share with me by commenting below what your experience was with the storm. If you have a question ask it in the comment section and I will respond. As the Boy Scouts motto reads: Be Prepared!
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