Page 30 - EQ Magazine Issue #3
P. 30
INSURANCE RESOURCE
AFTER THE CALM -
HURRICANE INSURANCE
By Dierra M. Bean
“Be Aware That Your Homeowners Policy Does Not
Cover Flood Damage. For This, You Must Have Separate
Flood Insurance Through The National Flood Insurance
Program.”
omeowners, Find out whether you
mobile have “guaranteed
Hhomeowners replacement cost:
and renters insurance insurance – what it would
usually covers the really cost to replace your
following: wind home and contents at
damage; rain current value. Or do you
damage that is a have “actual cash value: --
result of rain entering depreciated cost? Does
through a wind- your policy have an
damaged area; theft; automatic “inflation
vandalism and fire. If these damages occur, the guard” to keep up with current costs?
insurance pays for: emergency repairs to prevent further
damage; additional living expenses; debris removal; Be aware that your homeowners’ policy does not cover
actual cash value or replacement value of the damaged flood damage. For this, you must have separate flood
property, depending on the policy. insurance through the National Flood Insurance
Program.
Flood insurance is sold separately, but usually in
conjunction with homeowners’ mobile homeowners Know your insurance carrier and make sure you have
and renters insurance. It covers damage by these types phone numbers for the company. Keep your policy in a
of water: waves; tidal action; overflowing rivers, creeks safe place, and if you have to evacuate, take the policy
or lakes; and groundwater runoff. Also covered by flood with you.
insurance are repair or replacement of damaged or
destroyed buildings; compensation for damaged or If you rent, beware that your landlord’s homeowners
destroyed personal property at its actual cash value; insurance does not cover your possessions. You need
debris removal. Cars damaged by hurricanes are usually your own renters insurance.
covered by the comprehensive section of an auto
insurance policy. There’s a 30-day waiting period on flood insurance from
the time you apply to the day its effective. If you wait to
ARE YOU COVERED? call your agent until the hurricane warnings go up. It’s
Before a hurricane threatens, insurance industry too late. Likewise, when a hurricane watch or warning is
representatives suggest you: Read your policy to see announced, agents lose their “binding authority: -- their
exactly what coverage you have. If you don’t authority to enact insurance policies – until the watch or
understand, get your agent to explain it. warning is cancelled.
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