Prepare Kansas: Reviewing Insurance Coverage

By Nora Rhoades, Family and Youth Development Agent
 

The creek is rising and will soon be at the back door. Does your insurance cover flood damage? You meant to tell your insurance agent about grandpa’s antique truck that’s sitting in the garage. Is it covered?

Reviewing your insurance coverage is a vital step in being prepared ahead of any type of disaster, be it flooding, fire, or ferocious wind.


  

Here are some tips to keep in mind about insurance:

• The purpose of insurance is to cover major losses. Review your insurance coverage at least annually. Have a face-to-face review with your insurance agent every other year. Keep the agent’s name, contact information and your policy numbers in a grab-and-go box.

• Homeowner’s insurance protects your home and its contents in the event of damage or loss. Is your home insured for at least 80 percent of its replacement cost, rather than depreciated value? If not, insurance will not cover the full cost of rebuilding after an insured loss. What disasters are covered? Your policy will spell them out, and it likely will spell out what is not covered. Common exclusions are earth movement, flooding, and sewer backup.

• Auto insurance may include collision coverage, which insures your car against damage from a collision. Comprehensive coverage pays if your car is damaged by other circumstances, such as fire or hail. Know what your deductible (a specified amount of money that you must pay before an insurance company pays on a claim) is and have funds set aside to cover it.

• Disability insurance could help cover expenses for a defined period of time if you become disabled and can’t work. There are short-term, as well as long-term policies. Know how your policy defines a disability and your ability to work.

• Life insurance can cover people who die as the result of a disaster. Most individuals need 75 percent of current household income in coverage in the event of the death of a wage earner. Life insurance should be reviewed as family needs change through life stages. A life insurance calculator is available online at www.choosetosave.org/calculators. 

For resources to assist with insurance literacy, visit your local Post Rock District Office in Beloit, Mankato, Lincoln, Osborne, and Smith Center. Find out more about disaster preparedness by connecting to the Prepare Kansas Blog and the Post Rock Extension District’s Facebook Page. You can also email Nora Rhoades at nrhoades@ksu.edu.