Do Chula Vista home owners Know Their Fire Insurance Policy?
Unfortunately, most of us have no idea what are policy does for us in the event of a fire. With all these fires rampaging in N. California and with our own local experiences with fires, Chula Vista home owners should know the basics of their fire insurance policy. I wouldn’t want anyone to find out they had an ineffective policy while they’re standing outside their demolished homes. Below are some thoughts to consider:
1-Replacement costs- your policy should have the costs to rebuild your home at today’s prices.
Should a large fire engulf whole neighborhoods, that will raise the costs of materials and labor and your policy won’t fully cover these increased costs. Look into Extended Replacement Cost coverage. This helps the insured with unexpected cost increases.
2-It is not unheard of for insurance companies to change the terms of your policy during the
renewal process. Changes have to be disclosed, so read your policy!!
3-Code upgrade coverage- a rider to add to your policy to ensure your home is up to code with
the current improvements that newer homes will be equipped. ALE coverage helps with
Hotel, food and necessary rentals while your home is not available during construction.
4-California FAIR Plan- is a last resort to obtain fire coverage for your home. You must make an
effort to obtain private insurance and be denied prior to qualifying for FAIR coverage.
This coverage maxes out at 1.5 million so FAIR may not work for some people.
5-Smoke and Ash coverage- does your policy cover damage not directly related to a fire on
your structure? Another home may burn and yours is damaged with smoke, ash and
water but you are not covered.
Some final thoughts: Shoot a video of your home and your possessions as this will help with
Insurance disputes. Keep receipts in a safe place that can easily be taken with you if you
leave in a hurry. Should you make any improvements to your home like cabinets,flooring or a new
kitchen, you want your insurance company to know so you get like kind replaced instead of the original furnishings. Also get to know your insurance agent. Having a personal relationship can be invaluable should you need someone in your corner if a claim needs to be made.