Insurance claims are a major concern for thousands of Californians who have lost their homes due to the Los Angeles Fires. Research shows that extreme weather is a threat to for nearly half of U.S. households.
Ash-har Quraishi, CBS News national consumer correspondent, says that as many as three-quarters of U.S. homeowners may be underinsured. Jennifer Gray Thompson, CEO After the Fire USA, says that more Americans need to understand their insurance policies.
Thompson said to Quraishi, “The first thing that you should do is read your insurance policy. Most of us do not do this. So, I would encourage you to sit down with someone who is knowledgeable about insurance. Your underwriter (the insurance company) will be able do this for you.”
How much coverage is enough?
It is easy to determine how much coverage you have compared to what you would need in order for you rebuild your home if a disaster occurred. Divide the dollar amount you have for your insurance coverage by the area of your home or apartment.
You can get the dollar amount by searching online for “construction cost per square feet” and your zip code.
If you find out that your coverage is inadequate or not enough, then the next thing to do is to increase it.
Thompson advised: “Ask your underwriter.” Thompson said, “Maximize your insurance. It may cost us more each month but it is so important. Some people are afraid to call, for fear of being dropped. “Do not do that.”
List all of your belongings
Contents insurance, or possessions insurance, should be included in your home insurance policy. Make a list with the estimated value of your possessions to ensure you are fully covered. You should update the list annually and inform your agent of any major purchases such as jewelry or cars.
Thompson stated that “most people do not even realize they have insurance for their contents as part of their policy.” See how much it costs.
Fema: When to Call
You can call the Federal Emergency Management Agency (800-621-3362) from 7 am to 10 pm Pacific Time, seven days a weeks, if you are in a situation where you feel you may be underinsured. U.S. Department of Homeland Security may also be able provide assistance and negotiate directly with your insurance provider.
What can you do if you believe you are underinsured
Thompson recommends getting your insurer to put it in writing if you find that your policy is under-insured but they insist that you are fine.
She said: “Ask that they put it in writing – an email or a document that confirms that you’re adequately insured.” You must have the information in writing, and you should be able to easily access it.
Visit the United Policyholders website at Upheld.org for more information about the risks of underinsurance.
