Disaster Preparedness & Recovery

• Prior to a disaster, create a home inventory by listing all your belongings. Include details such as brand names, and keep both an electronic and hard copy of the list. Having this list will be beneficial when filing a claim in the event of a loss. The NAIC's Home Inventory App is available for free and will assist you with this process. You can download it from the App Store or Google Play.
• Create an emergency plan.
  • Familiarize yourself with evacuation routes.
  • Make a list of nearby shelters.
  • Have an emergency contact who lives outside your area for confirming your safety or re-establishing communication if you get separated from your family.
  • For additional tips on creating a plan, refer to the provided resources.
• Put together an emergency evacuation bag including essential medications, important documents, and a change of clothes.
• Protect your home from damage. Ensure your roof is in good condition and bring loose items, such as lawn furniture, inside before severe weather hits. Follow the tips from the Insurance Institute for Business & Home Safety (IBHS) to prevent damage during severe weather.
• Review your homeowners insurance policy annually to ensure it provides adequate coverage, as changes in your home's value may affect replacement cost. Flood damage is typically not covered by standard homeowners insurance. You can protect yourself by considering a flood insurance policy, but keep in mind that there is usually a 30-day waiting period before the policy takes effect. Learn more here.

The price of homeowners insurance depends on several factors:  

• Your home: The cost to rebuild it, whether it’s made of brick or wood, how far it is to the fire department or a water source, its age and condition, and the home’s claims history.  
• Individual factors: Coverage and deductible, length of coverage, insurance-based credit history, claims history, and whether you insure multiple properties or personal properties such as a car with the same insurer.  
• Other factors: Smoke detectors; a swimming pool or trampoline; pets; or running a business in your home all factor in.  

Important things to look at:

• A deductible is the amount you must pay out-of-pocket on a claim before the policy pays the loss. For example, assume you have a $1,000 deductible and the total claim is $5,000. You’d pay $1,000 and collect $4,000 from the insurer. A deductible also may be a percentage of the home’s insured value, not a fixed dollar amount.  
• Actual Cash Value coverage pays the repair or replacement costs – after the insurer subtracts an amount based on the home’s or personal property’s age and the wear and tear (depreciation).  
• Replacement Cost Coverage pays the full repair or replacement cost, without subtracting for depreciation, for materials of like kind and quality.  
• Understand the trade-offs.  Know the difference between actual cash value and replacement cost coverage. The premiums probably are lower for actual cash value coverage. But replacement cost coverage pays more if you have a claim.  
• Additional Living Expense (ALE) coverage covers the cost of hotel stays, meals and other necessities if your home is uninhabitable due to damage by a covered loss.