As homeowners, one of our most important maintenance tasks is taking an annual look at our homeowner’s insurance policy. Many times they are bundled into a homeowner’s monthly mortgage impound account along with property taxes and other fees; then paid automatically and are barely noticed.
Your monthly mortgage company takes care of it all, which is easy and painless. As a result, however, policies can be overlooked or misunderstood because they are set up during the very busy time surrounding a new home’s purchase escrow process and then overlooked as time goes by . . . literally forgotten.
For many homeowners, sadly, the first time their policy is reviewed is when disaster strikes, such as a burglary, fire, wind storm or flooding. Panic sets in when you have to call in the claim and ask insecurely, “Are we covered for that?” Hopefully, you’ll get a “yes” answer, but why not ask now so you know.
At Helfrich Associates as licensed structural engineers with construction expertise, we work very closely with many insurance companies and homeowners in resolving claims and making repairs. We are often surprised to learn what homeowners really don’t know about what their policies cover. It’s often important to add coverage depending on your changing circumstances.
That’s why Helfrich Associates recommends that that all homeowners contact their insurance agent or company to review their policy coverages. Homeowner’s insurance policies can vary greatly not only in their areas of coverage, but also in their deductibles, terms of coverage and amounts of coverage.
For example, homeowners in Southern California generally know they live in earthquake country and quake coverage requires a separate policy. They can be surprised, however, to learn they live in a flood zone, requiring additional coverage or a separate policy that isn’t always available. If you have added a room, patio or mother-in-law guest house, your agent also needs to know.
Recently after years of drought, many homeowners have been surprised to learn that their properties are now classified as high risk fire areas. Some have been unexpectedly dropped by their insurance carriers while others have faced home inspections and much higher rates. Others have been told re-landscaping is necessary as a condition of coverage.
In a wind storm, will your patio roof be covered by insurance if it blows away? Or are you covered when a tree limb snaps and breaks a window? Are you covered when a large tree is uprooted and falls onto your house during a rainstorm. Or was the tree blown over during a wind storm, or did it happen months later after a fire burned part of the tree? Does it really matter? The answer could be “yes,” or “no,” but you won’t truly know if you don’t ask now before an accident occurs.
What about the damage to flooring from a leaking pipe in the bathroom, laundry or kitchen? Thank goodness these incidents don’t happen every day, but only your insurance agent can tell you what is covered, under what circumstances and how much is covered?
If disaster does strike, such as a fallen tree or fire that damages your home, we could be calling you at the direction of your insurance company if you live in Los Angeles, Orange County, the Inland Empire or San Diego. Our job is to assess damage, identify clean-up requirements and often recommend or supervise complex repairs on behalf of insurance adjustors and their companies.
Your insurance company generally pays for our services when you’re fully covered. We are also contacted, however, by homeowners who didn’t understand their policies or coverage levels or when there are disagreements with insurance adjustors. Such situations are heartbreaking, but we’ll help you with professional advice catered to your needs and budget.
For example, do you know whether your fire insurance policy covers repair or full replacement cost? If full replacement cost isn’t covered, that could mean that expensive wood cabinetry or hand-carved, veined marble or granite might be replaced with less costly materials and finishes.
That old saying, “Ignorance is Bliss,” is untrue about insurance. We suggest an annual home policy review. If you’re still worried about your home surviving winds, floods or fires, Helfrich Associates also can help reinforce structures, create drainage plans or reduce fire hazards.