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Storm Season is Time to Review Insurance Policies

Out-of-date policy can lead to financial ruin

June 17, 2008

Natural Disasters • Storm-Tossed Texans Warned to Watch for Price-Gouging • Digital TV Transition Threatens Portables • Storm Season is Time to Review Insurance Policies • Scammers Exploit Iowa's Flooding • Post-Storm Survival Tips • Midwest Storm Victims May be Victimized Again • Fireman's Fund Offers 'Green' Policy • California Gears Up For Fire Scammers • California Wildfires Aftermath Requires Vigilance • Insurers Dumping Customers Along East Coast • Homeowners Insurance Rates Unfair, Massachusetts Charges • Researchers: La Nina Won't Affect 2006 Atlantic Hurricanes • 2006 Hurricane Forecast: More and Bigger • Few Americans Prepared For Disaster • Illinois Earthquake Rattles Insurers • Consumers Pay the Price for Disasters: Tips on Minimizing Your Losses • Congress Considers Taxpayer-Funded Catastrophe Insurance • Researchers Study East Coast Tsunami Danger • Is the Earth Getting Riskier? Expert Says No • One-Third of U.S. Population Lives in Hazard-Prone Areas • FEMA Tightens Flood Insurance Standards • Preparing Your Home for a Storm • Keeping Food Safe During an Emergency • Hurricane Season Is Time to Review Insurance Coverage • Tremors Rattle Californians

Now that the 2008 storm season is underway, homeowners should review and update their home insurance policies before disaster strikes. That's the message of Americas Watchdog Homeowners Consumer Center, which says an out of date policy can lead to financial ruin.

"I was in New Orleans before, during and after Katrina, my house was partially destroyed with eight feet of water, that sat there for 10 days," said Thomas Martin, president of Americas Watchdog & its Homeowners Consumer Center. "I never want to see another American go through what I, and my neighbors went through. I now have a number one rule -- don't think it will not happen to you, when it comes to your home or your homeowners insurance policy".

Not one state is safe, according to the advocacy group. The entire East Coast and Gulf Coast could get hammered with hurricanes, so homeowners need to make sure they have flood coverage, proper replacement coverage for the structure, loss of use if the home is not livable, and flood contents coverage.

But the Mid West is not exactly a safety zone. Tornados and floods have already caused widespread destuction this year, and it's still early in the season. In the Mountain West, you have to worry about storms and wild fires. On the West Coast you have to worry about earthquake and what could be record wild fires, the group says.

With the current U.S. economic slowdown, homeowners are encouraged to provide their insurance company with a documented list of all computers, TV's, jewelry, antiques, or anything else of value. If your home is burglarized these items will not be covered unless your insurance agent and the insurance company know about and have included these items on your policy.

All U.S. car owners should also make certain that their auto insurance has vandalism or break in coverage, in the event gas thieves damage their cars.

The Homeowners Consumer Center is also suggesting the following for every homeowner:

• Keep your insurance policy, mortgage documents, financial paperwork, pass ports, etc in a fire proof, water proof, safe, box, or container. A safety deposit box is a good back up, but what if the bank is under water as was the case for Americas Watchdog in New Orleans?

• Take pictures of all interior and exterior areas of your home and keep the pictures in your safe, fire/water proof box or safety deposit box. (Keep the pictures current)

• Every family should have a home evacuation plan in the event of fire.

• Every family should have functional smoke detectors in each room or hallway, along with a working flashlight in each room.

• For the entire East Coast & Gulf Coast, every homeowner should have a hurricane evacuation plan that includes a safe meeting area outside of the area at risk.

• For area specific emergency planning, homeowners should check with their local fire department or State emergency planning office.

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