It appears that after excessive storms like Katrina, and the fear of similar impending disasters, many large insurance companies are closing the doors and stamping out current homeowner’s policies. In a dwindling recession, fear based thinking is taking the forefront of numerous business entities like many coastal insurance companies. Furthermore, homeowners struggling most, are left out in the cold facing the turmoil on their own. What can be done about such an unfortunate dilemma? There are some reputable homeowner’s insurance companies that will bravely take you on despite the variables in question.
Coastal Homes May Require Custom Coverage Options
There are some very important things to keep in mind however: Firstly, you will, at a bare minimum, need basic homeowners insurance coverage, which usually includes compensation on loss of personal belongings, appliances, furniture and the like. This is a common coverage offered by most insurance companies. In addition, you need to inquire about the replacement of your house itself in the event of a disaster, because that is equally as important if not more important than the contents that lie therein. Contents replacement cost is what should be sought out when shopping for insurance companies. Again, this coverage includes loss of appliances without the consideration of appreciation or depreciation. Your lost items will be replaced, unless of course there are unique antiques and heirlooms that will instead be covered monetarily. The items that may not be covered oftentimes include jewelry, guns, precious stones etc. Items that require special attention may need a personal items floater. Specifically, the floater will cover detailed objects such as instruments, cameras, china, recording devices, ornaments etc. Now floaters usually contain commonalities such as specifics of items, loss to property, and an abundant coverage throughout the world. One thing is consistent about a floater: It covers items that require special care and matches the monetary value of these items upon an unfortunate loss.
Moreover, earthquakes are not usually covered unless purposely integrated into the contract for a nominal fee. It is important for the customer to inquire about particular items that are covered and not covered. In the case of a natural disaster or a burglary, an immediate inventory will be requested of the customer on behalf of the company. This process usually requires knowledge of the contents within the house; perhaps video acts as the best authority to prove which items actually exist. You will need to document items of worth immediately upon receiving an insurance policy. In the event of a loss, you will have provided your insurance company with documented proof of the contents aforementioned.
Location Can Affect Coverage in Multiple Ways
Homeowners insurance needs to be carefully considered with regard to location, crime rates, and numerous other variables. Especially, living on the coast, you are more subjected to the possibility of recurring natural disasters evidence by Hurricane Katrina and many others. There are very few people able to cough up a million dollars at the drop of a hat in the event of an impending disaster. This is a likely circumstance for those without homeowner’s insurance. It is important to understand the loss at hand in many of these terrible events. For example, during Hurricane Katrina, Hurricane Charlie, as well as the Northridge quake, millions of dollars were lost merely in unrelenting damage. Tropical cyclones make up nearly half of the damage, with tornadoes coming in a distant 2nd. Imagine having to pick up the pieces, without the proper insurance, one is left clueless amidst the shambles.
Coastal Coverage Diminishing but Still Available
Bear in mind that, for the most part, coastal home owners insurance is diminishing; however, there are still reputable sources that will take you on despite the obvious threat exposed living in disaster prone areas. Coastal homeowner’s insurance can still take on many customers at competitively low prices. It’s refreshing to know that there are still resourceful and knowledgeable insurance companies willing to bravely take you on.