Insurance Protection Should Be Part of Disaster Plan

With the official start of hurricane season on June 1, the Texas Department of Insurance encourages you to take some time to refamiliarize yourself with your insurance policies and to address any questions with your agent.

Get Prepared: Review and Update Your Insurance

To begin a review, start with your home inventory. Creating an inventory and storing it in a safe location away from home is one of the most basic – and effective – disaster preparedness steps you can take to help protect yourself and your financial future. A home inventory can save you time and headaches when filing a claim following a disaster.

You can download and print a home inventory checklist from the TDI website or simply use a home video camera and record everything in your home. The good thing about video that it takes less time and can be more thorough. Feel free to add your commentary when making the video. It is recommended that you make two copies and keep them both offsite.

It is important to review your inventory each year. Remember to note the make, model, serial number, purchase price and date of purchase of any new items and keep copies of receipts for major purchases with your inventory.

Also, make sure you know whether your policy includes coverage for replacement cost or actual cash value in case of a loss. Actual cash value (ACV) is the amount it would take to repair damage to your home or to replace its contents after allowing for depreciation. Replacement cost is the amount it would take to rebuild or replace your home and its contents with similar quality materials or goods, without deducting for depreciation.

Store copies of your insurance policies with your inventory in a safe location away from your home, or in a fireproof box so that these records can be easily retrieved in the event of a loss. Before you store the insurance policies, review them to verify that they meet your needs. Make sure you know your policy limits, deductibles, exclusions and policyholder claims notification requirements, before disaster strikes.

Keep a list of contact details for your insurance agent and/or company with your policies. Include office phone numbers, mailing addresses, website addresses and all of your policy numbers for quick reference.

Consider flood insurance. Homeowners and commercial property policies specifically exclude coverage for damage from flooding. To protect yourself from losses caused by rising water, you’ll need a separate flood insurance policy, typically from the National Flood Insurance Program (NFIP). NFIP is administered by the Federal Emergency Management Agency. Flood insurance policies usually have a 30-day waiting period after the purchase date before coverage takes effect on currently owned property, so don’t wait until a flooding threat is imminent. For more information, contact your insurance agent.

Protect your property. When a hurricane watch is issued for your area, taking a few measures in advance may help prevent or minimize damage to your home or property.

Protect windows, sliding glass doors, and skylights with shutters or plywood.
Put your car in a garage or other shelter. Secure boats and trailers. Secure outdoor furniture and any other loose material outside.
If possible, trim back any dead wood from trees. This will reduce the amount of wind stress on trees and eliminate potential damage from falling limbs.
Move valuables away from windows and, if possible, to an upper floor.
Bring pets indoors or make other arrangements for their safety. If you must seek shelter in a community shelter, understand that you may not be able to keep your pets with you. Contact your local humane society for information about animal shelters.
If you are leaving your home, lock and secure the premises. Take small valuables and important documents with you.