An expert shares everything consumers need to know
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Standard homeowners insurance doesnt cover everything floods, sewer backups, and some storm damage may be excluded, so its critical to review your policy closely.
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Replacement cost vs. actual cash value, coverage caps, and event-specific deductibles (like wind or hail) can greatly affect what youll pay out of pocket after a disaster.
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Check your policy every year, consider endorsements like extended replacement cost, and stay on top of changes so your coverage keeps pace with rising risks and costs.
While natural disasters like wildfires and floods are affecting more and more consumers across the country, insurance companies arent necessarily keeping up.
After a disaster, it isnt uncommon for homeowners to be left with damages to their homes and lacking the proper coverage.
To help break this down, Leslie Kasperowicz, executive editor of Insurance.com, shared everything consumers need to know to make sure their homes are covered before the next emergency.
Check your policy
Kasperowicz explains that its of the utmost importance for consumers to regularly check their homeowners insurance policies.
First, it's important to understand that homeowners insurance does not cover floods, she told ConsumerAffairs. This will be listed in the exclusions portion of the policy along with other excluded perils.
It's vitally important to understand what your insurance does not cover. Because a standard home insurance policy is an all-perils policy it covers anything that is not specifically excluded. It's essential to know and understand those exclusions, particularly as they apply to water damage.
Kasperowicz said that water damage from a burst pipe or rain that enters through a storm-damaged roof (when it is part of the same storm) is covered. However, overland flooding and water and sewer backup are not.
Know your limits
In addition to knowing whats covered in your policy, its also imperative to know the limits of your policy.
In a standard homeowners policy, the house is covered at replacement cost, but personal property is usually not; it's covered at actual cash value, Kasperowicz said. Be sure to check and understand how things are covered and the limits of coverage. You can upgrade your personal property coverage to replacement cost for a small premium increase, and it's well worth it.
Her last piece of advice: check your deductibles.
It's common for insurance companies to add a separate deductible for certain weather events, such as a windstorm or hail deductible. That deductible only applies to those claims, and it may be a percentage of your dwelling coverage. You need to know what you will pay if you file a claim.
What kind of coverage is most important?
According to Kasperowicz, checking your coverage every year to ensure your policy is as up-to-date as possible is key.
It's important to have replacement cost coverage for your home that matches its current cost to rebuild, and, as mentioned, to carry replacement cost coverage on your personal property, she said.
I highly recommend adding an extended replacement cost coverage endorsement to your policy, which gives you wiggle room to account for inflation. It is usually 125% or 150% of the dwelling coverage. Check your dwelling coverage every year.
Information is power
This advice applies to everyone, Kasperowicz said. Severe weather is on the rise across the country, and as summers become hotter that's not likely to get better anytime soon.
Review your policy on every renewal and be sure to read the section that outlines any changes from the year before. If anything is unclear, call your agent or insurance company representative and ask questions. You'll be better prepared for a disaster claim if you understand your coverage.
Posted: 2025-08-26 18:06:29