Thursday, November 28, 2013, AM | Leave Comment
How do you finance your future when some of that future seems so unpredictable? In particular, homeowners are worried about natural disasters and how these could destroy their homes and savings swiftly, without warning. In 24 hours, a person’s equity could be wiped out, and with it, their plans to finance retirement or their children’s education.
The weather is becoming increasingly extreme with floods, hurricanes, landslides, ice storms, and more phenomena in areas once considered stable. Places which have always known trouble experience increasing and more extreme instances of natural disasters, or they happen out of season and more frequently than usual. No sooner is one mess cleaned up than another rises up. Local, regional, and national governments finance some of the clean up, but money only goes so far.
Besides, there often is warning of these things. To keep up with the swiftness of natural occurrences, meteorologists continue to educate themselves about natural warning signs. Technologists develop sensitive equipment which gives communities faster warnings so they know how to prepare for events coming their way.
Furthermore, some parts of a state or country are well-known for “acts of God.” Heavily forested and dry parts of a state or province will experience regular forest fires. Homes close to flood plains can expect water to rise to a certain minimum point every year.
Builders and purchasers are advised where to and where not to build for good reason: they could be facing unnecessary hardship. Finance your future with real estate, by all means, but not against overwhelming odds.
Many consumers and writers have reported the rumor that insurance companies do not finance claims made by home owners against natural occurrences which have damaged or destroyed parts of their houses and outbuildings.
It is unclear where this idea came from. Perhaps some consumers experienced problems but did not read their policies fully to understand what was really covered. When their insurance firms failed to finance repairs and replacement of items, they took revenge by approaching the media.
Often, these consumers are rebounding from tough times and did not understand their responsibility to read policies fully. If they were unsure, they should have asked their insurance brokers to explain details.
Nothing should be assumed but always clarified, especially when it comes to how much of a person’s renovation costs an insurer will finance.
One area you must be careful to check is whether outbuildings are covered under your general policy. Although your patio and accessories kept around there are part of your house, what about the gazebo you built last summer, or the outdoor spa added following a lucrative tax return? Did you finance these projects at the expense of insurance protection? There is no need to sacrifice insurance: it is available, often at a slight increase over regular premiums.
Also, be sure to ask about internal additions and rental properties. Will the insurer finance repairs to parts of a home if renters do things they should not and damage caused by a storm was augmented by their carelessness? Should they have taken precautions you gave them, and if you cautioned them, is any of this in writing?
Finance Prevention, not Just Recovery
How bad things get during disastrous weather events can be controlled, in part, by home owners. Have your home checked over by an electrician, plumber, and furnace repair person. Have problems fixed right away.
Your roof should also be assessed for loose tiles. Finance maintenance in preference to paying the full emotional cost of damage. Even if an insurer has you covered, the loss you could face would be devastating. Mitigate risks by ensuring your home is in good shape.
Joshua Turner is a writer who creates informative articles in relation to business. In this article, he offer dips to homeowners in the case of natural disasters and aims to encourage further study with an EKU Emergency Management Online Degree.