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			Another Western State Heat Wave is Critical Reminder to Get Prepared

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SACRAMENTO, CA. &ndash; National Insurance Awareness Day is recognized on June 28 each year as an important reminder for individuals, families, and businesses to review their insurance policies, which can help prevent being underinsured. Having the right amount and the right types of insurance coverage helps individuals, families, and businesses financially recover quicker if their property is damaged or destroyed in a natural disaster such as wildfire, according to the American Property Casualty Insurance Association (APCIA). 

&ldquo;The issue of underinsurance can arise after a major catastrophe when building costs skyrocket and consumers find they do not have enough coverage to rebuild,&rdquo; said Jeff Brewer, vice president of public affairs for APCIA. &ldquo;A national shortage of construction materials, including lumber and computer chips used in smart appliances, could result in delays and higher costs, making recovery and rebuilding more challenging if widespread losses occur. Take time to review your policy with your insurer or agent before a disaster strikes to help make sure you are fully covered. Create a home inventory with your smart phone so you can make recovery and rebuilding easier.&rdquo;

Extreme drought conditions across western states are increasing wildfire risk. Now is the time to get financially prepared so you can recover should a major loss occur.&nbsp; 

&ldquo;Talk to your insurer or agent about three important coverages: inflation guard, building code upgrade, and extended replacement cost coverage, &ldquo;said Brewer.&nbsp; &ldquo;Keeping these three types of coverage updated can help you avoid being caught underinsured.&rdquo;&nbsp; 

When reviewing your insurance policies with your insurer or agent, APCIA offers the following tips to help make sure you are fully covered: 

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	<li style="">Ask if your policy pays replacement cost or actual cash value. Actual cash value takes depreciation into account, and replacement cost is the amount necessary to rebuild the home with construction materials of like kind and quality.</li>
	<li style="">Ask if your policy includes extended replacement cost coverage, which increases the coverage available to rebuild your home if labor and material costs skyrocket after a natural disaster.</li>
	<li style="">Ask if your policy includes optional higher limits of Additional Living Expense (ALE) coverage, which helps cover hotel and food costs if a longer timeframe is needed to rebuild your home.</li>
	<li style="">Ask if your policy includes coverage for building code upgrades and annual inflation adjustment.</li>
	<li style="">Check to see if your policy reflects the correct square footage and materials of your home.</li>
	<li style="">Check to see that your policy accounts for any recent home improvements or remodels.</li>
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Homeowners should also evaluate their flood risk. Flood damage is typically not covered under a standard homeowners policy. According to the Federal Emergency Management Agency, just one inch of water can cause upwards of $25,000 in damage to your home. Flood insurance is available as a separate policy through the National Flood Insurance Program or the private market, although some insurers may offer it as an endorsement to the homeowners policy. Even if your home is outside of a designated flood risk zone, you could still be susceptible to flooding.

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&ldquo;Flood policies take 30 days before they go into effect so don&rsquo;t delay in obtaining flood coverage,&rdquo; added Brewer.

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Additional APCIA Resources

<a class="fc-blue td-underline" href="http://www.pciaa.net/pciwebsite/Common/Static/Attachment/1923" style="">How to Save Money on Homeowners Insurance</a>

<a class="fc-blue td-underline" href="https://www.apci.org/pciwebsite/Common/Static/Attachment/1882" style="">How to Make a Home Inventory</a>

<a class="fc-blue td-underline" href="https://www.apci.org/pciwebsite/Common/Static/Attachment/1883" style="">How to Update Insurance</a>

<a class="fc-blue td-underline" href="http://www.pciaa.net/docs/default-source/industry-issues/generalrecoverytip_avoidcontractorfraud.pdf" style="">How to Avoid Contractor Fraud &amp; Abuse</a>

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Extreme drought conditions across western states are increasing wildfire risk.  Now is the time to get financially prepared so you can recover should a major loss occur.  

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