Be prepared so you can reduce your risks of loss
How can your home, auto, and property insurance work best for you?
Talk with your insurance agent or insurance company at least once each year to ensure your coverage is adequate for protecting you and your family against loss.
Consider any recent changes or additions to your property or surrounding area.
Are you prepared? DISASTER INFORMATION CHECKLIST
Do you have a home inventory?
- Maintaining a list of the property you own will help you make an insurance claim if your home is damaged in a disaster.
- Research shows that homeowners claim settlements much lower than the actual value of their possessions.
What are your insurance policy limits?
Many people wait until after a loss to understand their coverage. Unfortunately, these decisions can't be undone, and they will directly affect your ability to recover.
- Review your insurance coverage and identify any gaps.
- Make sure you are aware of your policy limits, deductibles, and exclusions.
- Be aware of potential changes to your homeowner's insurance coverage. Some insurance carriers have higher deductibles for wind and hail damage or exclusions that narrow coverage for storm damage.
Do you need an insurance endorsement or rider?
- Most homeowner policies have limits for jewelry, electronics, and other valuables. You may need a rider to cover items that exceed those limits.
- You may need a rider to cover the risk of your home’s sewer drain backing up.
- If you have a sump pump in your basement, you could get a rider to cover costs if the sump pump fails and your basement gets wet.
Do you need flood insurance?
Flood insurance typically requires a separate policy specific to flood coverage since typical home insurance policies do not cover flood damage. The National Flood Insurance Program offers flood insurance through the Federal Emergency Management Agency: floodsmart.gov
Flash flooding is happening more frequently as Minnesota’s changing climate is leading to more extreme weather. If you are at risk for flash flooding, look into getting coverage.
What is actual cash value vs. replacement cost coverage?
Imagine that your roof is damaged in a storm and all the shingles need to be replaced. The cost to replace them is $10,000. The shingles are 10 years old, but they should have lasted for 20 years under normal conditions. Therefore, they have depreciated by one-half of their full value.
- Under an actual cash value policy: You would only be paid $5,000 for a loss, minus any deductible.
- Under a replacement cost policy: You would initially receive $5,000 for the loss of the roof. Then, after having it repaired or replaced, you would submit the bill to the insurance company for the balance, not to exceed the amount determined by the insurance company to return your roof to its original condition.
Have more questions or concerns or complaints about insurance for your home, auto, property?
Contact the Commerce Consumer Service Center
File a complaint online
Call: 651-539-1600, or for Greater MN: 800-657-3602
Email: consumer.protection@state.mn.us