Is your family adequately insured for wildfires? The risks of damage or loss to your home in a natural disaster is increasing. The “wildfire season” is getting longer and more intense across North America, and it means that more houses than ever are at risk. If your home has previously been outside the risk area, but now you find that the risk area as grown to include you, you might be underinsured.
Here are a few things you can do to make sure that you have appropriate coverage. If something happens, an adequate insurance policy can help you and your family rebuild without the stress and hassle of budgeting repairs out of pocket.
Find Out If You Are at Risk
The highest-risk zone is in the wildland-urban interface where rural sprawl reaches the wildlands affected by forest fires. There are a higher number of structures that could be affected and due to human activity and degradation of wildlands, this is also where flames are most likely to start and spread.
Review Your Home Insurance
Does your home insurance match the value of your home? You may be underinsured if your policy does not cover the true cost to repair or replace your home and your belongings in the case of a wildfire. By some estimates, 3 out of 5 homes are underinsured by an average of 20 percent. Most homeowners don’t find out they’re underinsured until after the fact. Review your insurance coverages, especially if you believe your home is at risk of wildfire damage.
You may be underinsured if you selected coverage minimums – the least coverage you can get given the requirements of your mortgage. That can leave you paying out of pocket for excessive damage. You may want to consider raising your deductible (a maximum amount you would pay before insurance coverage kicks in) to reduce your costs instead.
How to Avoid Underinsurance
Make sure your policy has adequate coverage, including:
Mass Evacuation Insurance: A part of a policy that will reimburse you for the expenses associated with being forced to flee under a mass evacuation order. If the government puts out an Order, your family will have to evacuate, and there will be costs associated such as shelter, food, and travel.
Guaranteed Replacement Cost Coverage: Coverage that will allow your family to replace or repair your property even if the damage exceeds the coverage limits of your policy. Surprise increases in the costs of building materials or labor may mean the costs exceed your coverage. If you don’t have Guaranteed Replacement Cost Coverage, you will be on the hook for those extra expenses.
Making a Claim After a Wildfire
If disaster does strike and your family is evacuated and/or your home is damaged by a wildfire, you will have to file a claim with your insurer. The process can feel cold and impersonal, which is one reason many people decide to work with a public adjuster or insurance lawyer on their side.
While public adjusters have a history of providing professional assistance to families with insurance claims, law firms like Virani Law are becoming increasingly more popular to help families deal with the ins and outs of their claims. But first and foremost, independent insurance adjusters like Virani Law make claims easier for families whose home has been lost or damaged.
Find out if your home is in an area that could be vulnerable to wildfires and review your insurance policy for wildfire home protection. Underinsurance can cost your family a lot of money and frustration if disaster strikes.