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HomeMany people lack enough insurance to cover their losses after disasters. According to CoreLogic, a leading provider of financial, property and consumer information, approximately 60 percent of homes are underinsured. For most people, their home is their greatest asset, so it is critical to have the proper insurance coverage to ensure you will be able to repair or rebuild your home should you suffer a loss.

It is crucial to remember that some disasters come with warning, while others strike with little to no notice. This is why it is necessary to always keep your insurance policy up-to-date, so you are prepared for both expected and unexpected disasters. Knowing you have routinely reviewed your insurance coverage can help alleviate added stress and worry.

In South Carolina, homes are most at risk to experience damage from an array of storms and natural disasters such as:

  • Earthquakes
  • Floods
  • Hail
  • Hurricanes
  • Severe thunderstorms
  • Tornadoes
  • Wildfires

While standard homeowner’s insurance policies cover a wide variety of situations, homeowners should consider purchasing separate policies to cover some specific types of natural disasters, including floods and earthquakes. A standard homeowner’s policy does not cover losses caused by floods or earthquakes.

If you live in an area where floods are common, you may purchase a special flood protection policy. Your local Farm Bureau Insurance® agent can assist with purchasing a flood policy through the National Flood Insurance Program (NFIP) and certain homeowners may even need to consider purchasing a surplus flood policy that can provide additional protection above the NFIP limits.

For more extreme and less common disasters for South Carolina, like earthquakes and wildfires, discussing your homeowner’s policy with your agent in more detail can help ensure you’re aware of all coverage options. Earthquake coverage is available as an endorsement to a homeowner’s policy.

The best option to make sure you have enough coverage is through an Annual Review. We all know that things change in our lives and our insurance agent may be one of the last to know about those changes. However, it’s extremely important to notify your agent when you make renovations or additions to your home, or when you make a large expensive purchase.

In addition to reviewing your current policies, it is also wise to make sure your insurance to value is correct. As neighborhoods change and building costs rise, the insurance value, or replacement cost increases. The replacement cost of a home is determined by variables such as material costs, fuel and energy costs, the cost and availability of skilled labor, and changing construction codes and standards. Keep in mind that insurance premiums are not based on the current resale value of a home, but on the cost to replace it.      

Call your Farm Bureau Insurance agent today and schedule a comprehensive insurance review. In the unfortunate event that disaster strikes, you’ll be glad you did.