Rough weather in recent months has wreaked havoc for families and businesses across the Common- wealth.
In March, a windstorm caused a billion-
dollar disaster, the fourth in just the last two years according to the National Oceanic and Atmospheric Administration. Just recently, an EF-2 tornado touched down in Hardin County, causing severe damage to homes and trees.
The aftermath of these extreme weather events forced many homeowners to review their insurance policies and, in some cases, file damage claims.
Having knowledge about your property insurance is vital to ensure you’re properly protected.
For example, all homeowners should review your wind and hail deductible.
Many insurance policies have multiple deductibles, separate for types of “perils,” such as water, earthquake and wind/hail damages. A common scenario would be for an insurance policy to have a $1,000 deductible for most perils and have a 1% or 2% deductible for wind and hail. If this is your situation, you need to be aware of what this indicates. This percentage is based off “Coverage A” of your home, which is what covers the main dwelling. Therefore, if your home is covered for $350,000, your wind and hail deductible would be $3,500 (1%) or $7,000 (2%).
This is obviously a significant difference from the $1,000 for other perils and it’s imperative to know that before you file a claim. Be sure to review this portion with your insurance agent.
Another area to check is roof replacement coverage.
Most home insurance policies offer roof replacement coverage but differ regarding how they pay out in the event of a claim. Some companies offer endorsements to policies that offer to cover a roof for “replacement cost,” the cost to replace your roof with a brand new one. However, most often these endorsements are only available if your roof is under a certain age, typically between 10 and 20 years old.
It’s important to understand how your policy would cover, based on the age of your roof. Without this endorsement, most companies will cover a roof for “actual cash value,” which is a depreciated value based on the age of the roof. Be sure to also review this portion of your insurance policy with your agent.
These are just a couple of things to consider regarding your home insurance. It is highly recommended to review these, and many more, with your insurance agent every year.
