Rain, rain! What does your Insurance Cover?

The Wilmington NC area had nearly 10 inches of rain on Monday!!  That’s one of the wettest days we’ve had, second only to Hurricane Floyd, when it rained 13.38 inches in 1999.  Brunswick County declared a State of Emergency, schools worked off a delay Tuesday morning, motorists had trouble commuting- it was a mess!

But please know this is not typical for this area!  According to Meteorologist Colin Hackman of WECT, “To give the rainfall totals some perspective, five months of the year have record totals for the entire month less than the amount we received today.  For example, the April showers we always talk about…Well the record for the entire month of April is 8.21″ set back in 1961. We went over that amount before 5 pm, not in a month, but on the very wet day of September 27, 2010.”

For interesting statistics, see this detailed report from NOAA. National Weather Service Rainfall Data.And for interesting pictures, browse the photo gallery on the Star News website. There are some amazing shots that have been submitted!

With all of the rain we’re having, now is a good time to check your insurance. 68% of US homeowners are underinsured by an average of 18%, according to a survey by insurance-services firm MSB.  Trying to figure out the right amounts of insurance coverage can be a tricky process.  The fastest way to learn what’s covered is by reading the declarations page of your policy.  Listed below is a quick guide to typical insurance policies.

What’s covered under a typical homeowners policy:

  • Your home and any detached structures on the property.
  • Most furniture, appliances, electronics and tools.
  • Liability and medical expenses for injuries and property damage for which you are responsible, up to your policy limits.
  • Limited living expenses if you are forced to vacate your home because of a loss.

What may not be covered:

  • The replacement cost of your home and personal property, vs. its actual cash value
  • Jewelry, collectibles, firearms and other expensive items in excess of certain limits, typically $1,000 to $2,500
  • Business equipment, including computers used for work, in excess of certain limits, typically $2,500
  • Sewer or drain backups
  • Liability coverage for pools, trampolines and other high-risk items
  • Mold

What’s not covered:

  • Cracks or settling in the foundation
  • Neglect, wear and tear or intentional damage
  • Flood or earthquake damage
  • Coverage for either is available separately
  • Landslide or other earth movement
  • War or nuclear explosion
  • Pest damage
  • Pet damage

It’s important to make sure you call your insurance agent and know your coverage. This is article is for reference only!

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