By Richard Berroa
Why home owners file insurance claims? The answer to this question is obvious;
because of some kind of loss. Do you know what the leading reason property
owners filed claims with their insurance companies? According to c 2005 fact book
the answer is Fire and lightning counting for 32.42% of all loss claims. The second
leading cause of damage claims is Wind with 22.8 % followed in third by Water
damage with 21.74% and finally theft with 4.54%(these figures are based on 5 year
averages from 1999 to 2003). What does this mean? It means that statistically
speaking you have less to fear from your neighbor than you thought you did.
Knowledge is power; you are now empowered to protect your home from these
causes of home damage. How though?
One unsettling thought is how we are at the whim of natures’ wrath. Sure you can
install a lighting rod on your home to protect it from lightning strikes but what do
you do to protect you from the big ole tree next to our house that just got slammed
by lightning and is now not only on fire but also falling onto your house. Cut the
tree down, make a home out of asbestos and open up a whole other can of worms
or do you just try to be prepared as best you can for disaster? Being prepared for
disaster sounds like the best option to me.
How do I prepare for eminent doom? You would start by taking care of obvious
holes in your homes safety net. For example if you don’t have a grounded lightning
rod installed on your house do that especially if you live in a high risk area i.e. an
area where there are frequent lightning storms. Make sure that when you do tackle
a hole in that net that you fix it correctly the first time, otherwise you’ll learn the
lesson my grandma ingrained in me “the lazy person winds up working twice as
hard”. After patching up the apparent holes its time to shore up the not so palpable
ones; what I mean is doing the little things that will pay back big dividends for your
foresight. Or example making an inventory of all your possessions is a great place
to start. If the unthinkable happens, with your home inventory you’ll have a record
of everything you had and what’s more your inventory is just the tool you’ll reach
for during the claims process.
The first thing your insurance company will ask you for is to compile a list of all the
lost or damaged items. No problem for you because you have your home inventory!
But what is this wondrous, magical tool? A home inventory is simply a list of all of
your possessions, with photos and details such as make, model, serial number, all
compiled in a neat and organized fashion for quick dissemination. Imagine the
claims process without it; having to compile that list after the home was burned
down. Could you remember everything? Would you be even in the right state of
mind to be able to do this? Don’t wait if you haven’t done this act now, later will be
too late.
Another smart move would be to check out what disasters are actually covered by
your insurance policy. Listed below is a list of most of the disasters covered by most
insurance policies (from the Insurance Information Institute’s website). http://
http://www.iii.org/individuals/homei/hbasics/whattype/
What type of disasters are covered?
Perils
1. Fire or lightning
2. Windstorm or hail
3. Explosion
4. Riot or civil commotion
5. Damage caused by aircraft
6. Damage caused by vehicles
7. Smoke
8. Vandalism or malicious mischief
9. Theft
10. Volcanic eruption
The following might not be covered by your policy!
11. Falling objec
t
12. Weight of ice, snow or sleet
13. Accidental discharge or overflow of water or steam from within a plumbing,
heating, air conditioning, or automatic fire-protective sprinkler system, or from a
household appliance.
14. Sudden and accidental tearing apart, cracking, burning, or bulging of a steam or
hot water heating system, an air conditioning or automatic fire-protective system.
15. Freezing of a plumbing, heating, air conditioning or automatic, fire-protective
sprinkler system, or of a household appliance.
16. Sudden and accidental damage from artificially generated electrical current
(does not include loss to a tube, transistor or similar electronic component)
Most policies cover only the first ten items on this list the rest are extra’s. The next
list covers item that are not covered by most home policies.
Disasters not covered
1. Floods?
You can purchase flood coverage directly from your homeowners insurance agent.
However, the policy is provided by the Federal Flood Insurance Program
( 800-427-4661, http://www.fema.gov/nfip ). You can get replacement cost
coverage for the structure of your home, but only actual cash value coverage is
available for your possessions. There may also be limits on coverage for furniture
and other possessions stored in your basement. Flood insurance is available for
renters as well as homeowners. You will need flood insurance if you live in a
designated flood zone. But also consider buying it if your house could be flooded by
melting snow, an overflowing creek or water running down a steep hill. Don’t wait
until the evening news announces a flood season warning to buy a policy. There is a
30-day waiting period before coverage takes effect.?
2. Earthquakes?
Earthquake coverage can be a separate policy or an endorsement to your
homeowners or renters policy. It available from most insurance companies. In
California, it is also available from the California Earthquake Authority
( [http://www.cea.gov] ). In earthquake prone states like California, the policy comes
with a high deductible.?
3. Maintenance damage?
It is your responsibility to take reasonable precautions to protect your home from
damage. Your insurance policy will not cover damage due to lack of maintenance,
mold, termite infestation and infestation from other pests.
In light of recent disaster’s it might be a good idea in looking into flood insurance
coverage. You can find out if you live in a flood plain by contacting your local
government office, for that info if you’re not sure. You can find their phone
numbers listed in the blue pages of your local phone book.
Finally use your imagination as to how you can protect and make your home
disaster proof. There are countless other things you can do inspite of the factors
that you cannot control. Just use your head and find the holes. Remember you are
your homes first and last line of defense; if you don’t take care of your home, who
will? Be proactive, that way you can be prepared for the worst of situations. Good
luck and be safe!
because of some kind of loss. Do you know what the leading reason property
owners filed claims with their insurance companies? According to c 2005 fact book
the answer is Fire and lightning counting for 32.42% of all loss claims. The second
leading cause of damage claims is Wind with 22.8 % followed in third by Water
damage with 21.74% and finally theft with 4.54%(these figures are based on 5 year
averages from 1999 to 2003). What does this mean? It means that statistically
speaking you have less to fear from your neighbor than you thought you did.
Knowledge is power; you are now empowered to protect your home from these
causes of home damage. How though?
One unsettling thought is how we are at the whim of natures’ wrath. Sure you can
install a lighting rod on your home to protect it from lightning strikes but what do
you do to protect you from the big ole tree next to our house that just got slammed
by lightning and is now not only on fire but also falling onto your house. Cut the
tree down, make a home out of asbestos and open up a whole other can of worms
or do you just try to be prepared as best you can for disaster? Being prepared for
disaster sounds like the best option to me.
How do I prepare for eminent doom? You would start by taking care of obvious
holes in your homes safety net. For example if you don’t have a grounded lightning
rod installed on your house do that especially if you live in a high risk area i.e. an
area where there are frequent lightning storms. Make sure that when you do tackle
a hole in that net that you fix it correctly the first time, otherwise you’ll learn the
lesson my grandma ingrained in me “the lazy person winds up working twice as
hard”. After patching up the apparent holes its time to shore up the not so palpable
ones; what I mean is doing the little things that will pay back big dividends for your
foresight. Or example making an inventory of all your possessions is a great place
to start. If the unthinkable happens, with your home inventory you’ll have a record
of everything you had and what’s more your inventory is just the tool you’ll reach
for during the claims process.
The first thing your insurance company will ask you for is to compile a list of all the
lost or damaged items. No problem for you because you have your home inventory!
But what is this wondrous, magical tool? A home inventory is simply a list of all of
your possessions, with photos and details such as make, model, serial number, all
compiled in a neat and organized fashion for quick dissemination. Imagine the
claims process without it; having to compile that list after the home was burned
down. Could you remember everything? Would you be even in the right state of
mind to be able to do this? Don’t wait if you haven’t done this act now, later will be
too late.
Another smart move would be to check out what disasters are actually covered by
your insurance policy. Listed below is a list of most of the disasters covered by most
insurance policies (from the Insurance Information Institute’s website). http://
http://www.iii.org/individuals/homei/hbasics/whattype/
What type of disasters are covered?
Perils
1. Fire or lightning
2. Windstorm or hail
3. Explosion
4. Riot or civil commotion
5. Damage caused by aircraft
6. Damage caused by vehicles
7. Smoke
8. Vandalism or malicious mischief
9. Theft
10. Volcanic eruption
The following might not be covered by your policy!
11. Falling objec
t
12. Weight of ice, snow or sleet
13. Accidental discharge or overflow of water or steam from within a plumbing,
heating, air conditioning, or automatic fire-protective sprinkler system, or from a
household appliance.
14. Sudden and accidental tearing apart, cracking, burning, or bulging of a steam or
hot water heating system, an air conditioning or automatic fire-protective system.
15. Freezing of a plumbing, heating, air conditioning or automatic, fire-protective
sprinkler system, or of a household appliance.
16. Sudden and accidental damage from artificially generated electrical current
(does not include loss to a tube, transistor or similar electronic component)
Most policies cover only the first ten items on this list the rest are extra’s. The next
list covers item that are not covered by most home policies.
Disasters not covered
1. Floods?
You can purchase flood coverage directly from your homeowners insurance agent.
However, the policy is provided by the Federal Flood Insurance Program
( 800-427-4661, http://www.fema.gov/nfip ). You can get replacement cost
coverage for the structure of your home, but only actual cash value coverage is
available for your possessions. There may also be limits on coverage for furniture
and other possessions stored in your basement. Flood insurance is available for
renters as well as homeowners. You will need flood insurance if you live in a
designated flood zone. But also consider buying it if your house could be flooded by
melting snow, an overflowing creek or water running down a steep hill. Don’t wait
until the evening news announces a flood season warning to buy a policy. There is a
30-day waiting period before coverage takes effect.?
2. Earthquakes?
Earthquake coverage can be a separate policy or an endorsement to your
homeowners or renters policy. It available from most insurance companies. In
California, it is also available from the California Earthquake Authority
( [http://www.cea.gov] ). In earthquake prone states like California, the policy comes
with a high deductible.?
3. Maintenance damage?
It is your responsibility to take reasonable precautions to protect your home from
damage. Your insurance policy will not cover damage due to lack of maintenance,
mold, termite infestation and infestation from other pests.
In light of recent disaster’s it might be a good idea in looking into flood insurance
coverage. You can find out if you live in a flood plain by contacting your local
government office, for that info if you’re not sure. You can find their phone
numbers listed in the blue pages of your local phone book.
Finally use your imagination as to how you can protect and make your home
disaster proof. There are countless other things you can do inspite of the factors
that you cannot control. Just use your head and find the holes. Remember you are
your homes first and last line of defense; if you don’t take care of your home, who
will? Be proactive, that way you can be prepared for the worst of situations. Good
luck and be safe!
