DISB Issues a Four-Step Storm Preparedness Plan (cont'd.)

Step Three - Review Your Insurance Coverage

• Review your insurance coverage. What does your insurance policy cover? What does it exclude?
• The standard homeowners’ insurance policy does not cover flood damage. Check if your policy covers debris removal and sewer back-up.
• Find out if your policy covers additional living expenses to reimburse you for the cost of living in a temporary residence if you are unable to live in your home.
• If you have jewelry or collectibles, check the limits of coverage. You may want to buy more coverage for these items.
• What is your deductible? You will have to pay at least this much if you have a covered loss.
• Be sure you understand the difference between replacement cost and actual cash value. If your coverage is for replacement cost value and the cost to repair the property is greater than the cost to replace the property, the insurance company will reimburse you the dollar amount needed to replace damaged personal property or dwelling property with similar kind and quality, limited by the maximum dollar amount shown on the declarations page of the policy. For example, if you own a  five-year-old lawn mower that is destroyed by a fire, the company will reimburse you with an amount to purchase a new, similar lawn mower, less your deductible.