This year has already seen multiple earthquakes, tornadoes, and a tsunami that rocked the world. Extreme weather is as terrifying as it is uncontrollable. That is why it is so important to make sure your home is property covered in the event of a natural disaster. According to Marshall & Swift 59% of today’s homes are underinsured by an average of 22%.

Homeowners should be sure to update their insurace regularly to include improvements, alterations, additions, and increased rebuliding costs. Many consumers confuse the real estate value of their homes with what it would cost to rebuild. In reality the cost of materials has gone up not only because of the devastation from last years storms, but because of increased global demand.

Here are a few things to consider when evaluating the cost to rebuild your home:

• Replacement Cost – Most policies cover replacement cost for damage to the structure. A replacement cost policy pays for the repair or replacement of damaged property with materials of similar kind an quality.
• Extended Replacement Cost – Provides additional percentage of insurance coverage over the amount that you carry for your structure. This can be critical if there is a widespread disaster that pushes up the cost of building materials and labor.
• Inflation Guard – Automatically adjusts the rebuilding costs of your home to reflect changes in construction costs.
• Ordinance or Law – In the event of a loss, you may be required to rebuild your home to meet new building codes (indoor fire sprinklers, etc.). This coverage provides a specific amount towards these costs.
• Water Back-Up – Insures your property for damage from sewer or drain back-up.
• Flood Insurance – Standard homeowners policies do not have coverage for floods. Coverage is available through the National Flood Insurance Program as well as other private insurers.

Additionally, you should be sure you have enough coverage to replace your possessions. Maybe conduct a home inventory to get an idea of how much coverage you should have.

Another thing to think about is additional living expenses. If you have to move out of a home due to a covered loss you could be out for months. Ask your agent how much coverage you have, and if you can increase it if need be.

The Insurance Information Institute (www.iii.org) has many helpful articles for disaster preparedness. Check their website to see information on evacuation plans, and protecting against certain disasters.

Call your agent today to review your homeowners insurance!