Storm Season Calls for Insurance Check-up

It’s spring in Kansas and that usually brings about a few storms and tornadoes. This past weekend’s weather was a reminder that storms can strike with very little warning. When warnings are issued and the sirens blow, it’s too late to worry about your insurance coverage. Now is the time to review your policies to make sure you have the proper coverage.

Homeowners are all too often surprised to learn that their coverage doesn’t cover expenses related to water and wind damage; debris or tree removal; sewer back-up due to flooding; sump pump failure; or additional living expenses if the disaster destroys your home. Read your policy thoroughly to find out what your policy covers. Contact your insurance representative if you have questions, and consider buying additional coverage if necessary.

Renters and home owners alike should check policy payout limits, including the amount for the contents of the home. If you’ve bought new or additional furnishings, you may need to increase your coverage. This is especially true when you purchase big ticket items like big screen televisions, stereo systems or home furnishings or appliances.

In the event of a disaster, the settlement amount you’ll receive will depend on the type of policy you have. Two common policy types are replacement cost and actual cash value. A replacement cost policy will provide you with the dollar amount necessary to replace damaged items without deductions for depreciation. An actual cash value policy pays the amount needed to replace the item minus depreciation. For example, let’s say that a tree falls on your house during a storm and demolishes your 10 year-old roof. If you have a replacement cost policy, the insurance company would pay the entire cost of replacing the roof, minus your deductible. An actual cash value policy would pay a smaller percentage of the replacement cost. You would be responsible for the rest of the cost. If you typically do not have enough money on hand to cover your portion of the replacement costs, you’ll probably want to choose a replacement cost policy.

Most policies do not cover damage caused by rising waters. If your home is located in a flood prone area, consider buying federal flood insurance. Storms can also wreak havoc on vehicles so check your auto policy too. Comprehensive, rather than collision, coverage pays if a storm or flood damages your car.

Storms are a fact of life in Kansas, but they’re not nearly as disastrous to the pocketbook if you have the right insurance coverage. If you would like more information about insurance, contact Jennifer Wilson at the Riley County Extension Office. You can reach me by calling 537-6350 or stopping by 110 Courthouse Plaza, Rm B220 or by e-mail at jrwilson@ksu.edu.