Southeastern Wisconsin may never see the likes of Hurricane Katrina, but tornadoes, flooding, wind damage, fire and more all happen right here in our communities. When a disaster hits, there’s no time to check whether you’ve got the right kind of homeowners insurance. It’s best to take time when things are calm to evaluate your coverage and ask the right questions.

The images of New Orleans under water made us all wonder about flood insurance. Here are a few tips on that and more to help you evaluate your coverage:

• Does my homeowners insurance coverage flooding? No. Flood insurance in virtually all cases must be purchased separately from your homeowners policy. If you live in flood plain, it’s likely you’ll be required by your lender to purchase flood insurance through the National Flood Insurance Program (NFIP), which is backed by the federal government. But flood insurance may be a good idea for every homeowner – about 25% of NFIP’s claims come from outside high-risk flood areas. Those not living in a flood plain can purchase flood insurance through NFIP at substantially discounted rates.

Most importantly, flood insurance is designed only to help you “get back on your feet.” It typically covers basement clean up and items such as boilers, furnaces, hot water heaters, and air conditioners. Flood insurance does not cover basement improvements such as finished walls, floors or ceilings, or personal belongings in your basement.

Homeowners can determine how vulnerable their homes are to flooding by checking their address in the NFIP run website at www.floodsmart.gov and clicking on “What’s Your Flood Risk?”

• Are sewer and drain backups covered? – Damage from sump pump failure and the backup of sewers or drains is typically excluded from your homeowners policy. The good news is that you can usually buy it as a special endorsement in coverage amounts of $5, $10, $25, or $50 thousand. Be sure you buy enough coverage to restore your finished basement and its contents. Consult with your insurance agent to ensure you have the appropriate coverage.

• What about tornadoes? A typical homeowners policy should cover damage from a tornado or other storm. Still, deductibles for wind and hail damage may be higher than in the past.

• What about earthquake coverage? Don’t laugh. Minor earthquakes hit northern Illinois in June 2002 and 2004 and both were felt in our area. Damage from an earthquake would not be covered under your homeowners policy – you’d need separate coverage. But it is affordable; one estimate puts earthquake coverage adding about an additional 10% to your homeowners premium with a 5% or 10% deductible, depending on the carrier.

• Do I have enough coverage overall? In the wake of so many disasters, you should check to make sure you have adequate coverage both for your home’s value and for its contents. A standard policy might insure you for a minimum of 80% of your home’s replacement value and 50 -70% of your home’s value for contents. It’s important that your replacement costs reflect today’s higher cost of building. Check with your agent.

Customer service and responsiveness can be even more important than the cost of your premiums. A low-cost policy may seem attractive, but if the company isn’t there when you need it, the money you saved means little. When tornadoes struck the Stoughton area this summer, Johnson Insurance agents lost no time. They called all their customers in the area the next morning to see how they were doing and if they needed any assistance. If your home is damaged or destroyed, the last thing you want is a fight with your insurance company.

Your trusted insurance agent is a great resource, and here are several other helpful Web sites:
• www.travelers.com – Click on “Learn More About Insurance” then click on “Flood 101.”
• www.fema.gov – The Federal Emergency Management Agency’s Web site with information on flood insurance, flood plain maps, the NFIP and more.
• http://oci.wi.gov – Site for Wisconsin’s Office of the Commissioner of Insurance.

Be sure you have the insurance coverage that fits your needs from a reliable company you trust. If disaster does strike, you’ll want that peace of mind to help see you through.

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