Emma Gutierrez: Hello! I am Emma Gutierrez with Wells Fargo & Company. Today we are learning how to make sure your home is properly protected in the event of a disaster. With the recent widespread national disasters, having the right policies in place is extremely important to protect your home and its contents. If you own a home, ask yourself 4 key questions to ensure proper coverage. Do I have enough insurance to rebuild my home? Do I have enough insurance to replace all of my possessions? Do I have enough coverage for additional living expenses? Do I have enough liability insurance to protect my assets?
Your standard Homeowners Insurance policy will cover your home and its contents for most disasters, but there may be limitations. Review your policy, discuss it with your insurance agent, and consider where you live when deciding if you need to buy extra coverage. For example, floods, earthquakes, regular wear and tear and sewer backups aren't covered by standard homeowners policy. And if you live in an area that's prone to specific natural disasters, such as hurricane, tornadoes, or hailstorms, your policy may limit or not cover damages from those calamities. Another type of coverage to consider is disaster mortgage insurance. If your home is severely damaged by a disaster such as fire, flood, windstorm, earthquake, landslide, mudslide, volcanic eruption, or even a gas leak and declared unlivable, your Homeowners Insurance will not pay your monthly mortgage payment. Your mortgage will still be due each month even if you are displaced. This is where disaster mortgage insurance steps in. Some disaster policies will cover your monthly mortgage payment if your home is unlivable for more than 48 hours for up to two years, regardless of all other insurance you have, including Homeowners. This type of policy can also pay off the balance on your mortgage if your property is considered condemned or judged permanently unhabitable due to a disaster. If you are concerned about the threat of natural disasters where you live, make sure you are protected by having the right coverage in place before something happens.