Insuring your home for a natural disaster
Natural disasters can be devastating and strike when we’re least prepared.
The last thing you want to happen after a natural disaster strikes is to be left footing the bill but it can be hard to estimate the level of coverage you need. And because it’s difficult to estimate the exact cost of rebuilding a home, because your insurance policy is old and because you may have completed renovations to change the value of your home you may very well be underinsured.
Am I covered for disasters?
Well, depends on the sort of policy you have. You insurance policy will state what sort of disasters you are covered for, but it’s important to be wary of the insurance company’s definitions of what constitutes a disaster. If you have home and contents insurance make sure you check what disasters you are covered for and understand the definition of each terms and any exclusions and conditions.
If you are not happy with your current level of cover, it’s a good idea to discuss this with your insurer and see what else they can offer. It also might be an idea to see if you can get any other quotes.
Do I have enough cover to rebuild my home?
Well, it depends on whether you’ve got a total replacement policy or a sum-insured extended policy. Total replacement policies ensure you’re less likely to be under-insured and under this policy an insurer will agree to repair or rebuild a home to the same size and standard of your current one. Sum-insured extended policies provide extended cover and a safety net of around 30 per cent.
What should I do after a disaster?
To make sure you have the best chance possible of getting your money back from home and contents insurance after a natural disaster, it’s important that you take the following measures:
- Before you try to perform any repairs it’s important to contact your insurer. Ask them for an explanation of the claims process and talk about emergency or alternative accommodation.
- Take photos and make lists of items damaged before cleaning up. This can assist your claim.
- When you start cleaning up consider removing damaged possessions like carpet.
- Check with your insurer before authorising repairs as you may not be covered.
- Be careful with any repair equipment or vehicles that may be damaged
Related links:
Our simple guide to insuring jewellery
The types of insurance that aren’t worth your while
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