Time to Prepare for Spring Storms

February 16th, 2009 by Brad C

Last spring Georgia residents were pummeled by a devastating tornado, so significant MARCH 07 GeorgiaTornado Damage that the President declared it a federal disaster area.  While federal relief helps, it is even better if homeowners   have the proper insurance in place to restore their lives to normal.  So for home owners living in similar geographic locations, follow the lead of those residents purchasing the right Georgia Home Insurance.

Standard Home Insurance Policies

Most home insurance policies cover things like wind damage to roofs, broken windows, and storm damage to internal walls and personal property.  There are two important things to know about your policy in this situation. 

The first is whether your insurance includes replacement coverage or actual cash value coverage.  Replacement coverage will pay the full cost of replacing or repairing the lost items, which actual cash value will deduct depreciation first.  Though replacement coverage costs a little bit more, in times of an emergency, it means you don’t have to come up with the difference between the items cost and its current value.

The second area to watch is the policy limits.  The home insurance company will only pay up to the limit of the policy, so if the policy is too small, there won’t be enough money to cover the repairs.  Most companies insist that the policy value is at least 80% of the property value, but if homes in your neighborhood are appreciating, it is important to review the policy each year to make sure it is big enough to cover a major catastrophe.

Though you can use an appraisal to determine the value of your property, remember that you don’t have to insure the value of the land.  Since it won’t be damaged during a storm, there’s no need to buy insurance coverage you don’t need and can’t ever collect on.

Thursday – Preparing for Spring Storms Part II – What Endorsements to Add to a Home Insurance Policy

 

Listen to Time to Prepare for Spring Storms
Listen to Time to Prepare for Spring Storms

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