Does homeowner's insurance usually cover 100% of your home value during a natural disaster?

Answer 1

Only if you are fully covered for the replacement cost of the home. A common error that may people make is to insure their home only for what they paid for it. I paid $117k for my place but building a similar home in the area would cost $225k today so that's how much coverage I have to carry to be fully covered.

On top of that, if you are covered for less than 80% of the replacement cost, ANY payment on any claim will be adjusted downward to reflect the proportional amount of the coverage. For example, if you're covered only for 75% of the replacement cost and have a roof damage claim, reimbursement will be limited to 75% of the repair cost.

Of course, in all claims the deductible will be subtracted from any and all claims.

Answer 2

That's a loaded question. "Natural disaster" isn't referred to in a policy. And I'll tell you flat out, FLOOD ISN'T COVERED by the homeowners policy. In some areas, WIND isn't covered under a homeowners policy, you need seperate coverage for that.

In ANY case, most policies DON'T cover more than you insure your house for, and MOST people don't like to insure their home for 100% REPLACEMENT value. They prefer insuring for MARKET value, so it's frequently a fight when you start a policy, to be sure the house is insured adequately.

SOME policies aren't even WRITTEN on a replacement value, but "functional replacement" or even "market" value, which would leave a home SUBSTANTIALLY underinsured in case of a loss.

To sum up, if you want YOUR house to be fully covered during a "natural disaster", schedule a sit-down with your agent, be sure you have a replacement policy where your house is insured to full value, check that you have flood coverage in place (seperate policy, remember?) and wind (might be a seperate policy), and earthquake (also might be a seperate policy). NO ONE HERE can give a carte blanche answer that's accurate, to YOUR situation.

Answer 3

Not to be flip, but like grandpa said..."read everything you sign." You need to carefully read and understand your policy statement. Do NOT call your agent, ask them a question, get a generic answer, then think you are OK.
Just look at the lawsuits related to insurance claims in LA, MS, California, etc. A lot of folks thought they were covered.
Flooding is not covered, neither is sewer back up and lots of other items.

Answer 4

If you are renting, then it would be best to contact the Landlord and explain the situation and tell him that you filed a police report. The homeowners insurance that the landlord has covers the home,however he has a deductible and it is ususally higher than the cost of the window. But you are the tenant so there shouldn't be a problem for you.

Answer 5

Depends on your policy. Some have full replacement value. Some just pay you whatever the amount of the policy is. Some require you re-build in the same spot. Call your agent.

Answer 6

Policies are all written differt---not all companies have the same coverages...If you have no idea--better sit in the agents office with a note pad and make sure that the coverages are what you expct for the monthly premium

Answer 7

I would check the policy to see what the coverages are/or contact your insurance agent and he/she will know what exactly is covered and how much.

Answer 8

"Usually" is the key word. Not normally. The majority of people are under-insured. One needs to review their policy yearly and make sure it keeps up with inflation.

Answer 9

No one here knows this answer; check your policy.

Answer 10

no