Some homeowners assume that their insurance policy covers the full value of the house, the contents within the house, and any damage to the property after a disaster. But, this is not the case, as there are coverage limits on every policy that are determined when the policy is purchased. Most homeowner policies only insure specific disasters. In order to be covered for all types of perils, and for the extra expenses that are incurred during the rebuilding process, Surace stresses that homeowners should purchase additional coverage. Waiting until after a disaster strikes can negatively affect the amount awarded to you in your claim settlement.
Surace points out that there can be many unexpected costs incurred by the homeowner in the claims process, such as building-code upgrades and additional living expenses. If the homeowner had not purchased ordinance and law coverage prior to the disaster, they would have to pay out-of-pocket the costs to bring the building up to code. A homeowner will also have additional living expenses—those extra costs incurred because you cannot live in your home while repairs are completed—that need to be budgeted for during the rebuilding process.
"Maybe you're farther away from your job and you have to drive 15 miles extra to work every day. They should compensate you for those additional miles," says Surace. "These are things that you need to make sure you're paying attention to so that you can submit them with your claim."
The full article "How home insurance coverage decisions affect claim payments" is available on the Insure.com website. More information on "Ordinance or Law Coverage" is available through Adjusting Today.