Disaster Insurance: How to Be Ready for the Worst Case Scenario

Whether floods, hurricanes, tornadoes, wildfires or earthquakes, different types of disasters have affected North Carolina in the past and will continue to do so in the future. While our area here in the Triad Region is fairly exempt from wildfires or earthquakes, hurricanes and floods are an ever-present danger and the only way to get ready for when they strike is to be proactive in your preparation. This includes readying your home or business structurally for the advent of any likely disaster scenarios, having sufficient equipment and supplies in place to exist safely if such an event occurs and being covered by the proper type and amount of disaster insurance to help in rebuilding in the aftermath of a suffered disaster.

Evaluating your exposure to potential disasters such as floods can be accomplished by determining your proximity to flood plains in your local area. Since most homeowner’s insurance policies don’t cover flood damage, you’ll have to make a decision whether or not to acquire flood insurance in addition to your regular coverage. Remember, just because you don’t live within a flood plain area doesn’t mean you can’t be subjected to flood damage.

Review Your Disaster Insurance Coverage

Get together with your insurance agent and determine whether the coverage you have is sufficient and that you understand what coverage you have in place. If you own a business you may want to look into obtaining business interruption insurance. This can help you meet your expenses in the event that a disaster forces you to temporarily close your business. Statistics show that approximately 25% of the businesses that are forced to close due to a disaster of some type never reopen.

One common disaster that’s typically covered by your homeowner’s or business insurance policies is fire. It’s not uncommon for those who fall victim to a devastating fire to learn that some objects they own such as high-priced jewelry or artwork may not be fully covered in the event that they become destroyed. Check your policy limits on these types of things, which may also include furs, silverware and various expensive collectibles like coins and stamps. If the coverage falls short of the appraised value of these items make sure you obtain an endorsement or rider to extend your coverage to higher amounts. An annual or bi-annual consultation with your insurance agent is always a good idea to keep your policies current.