Carson City, NV -
May 01, 2017Fewer than 22 percent of homeowners
view changing weather patterns or natural disasters as an important factor when
updating their homeowners insurance policy, according to a new survey from the
National Association of Insurance Commissioners (NAIC). With natural disasters
on the rise1, the NAIC urges consumers to consider their insurance
risks and understand what is and is not covered in their current policies.
Recent weather in Northern Nevada caused
severe flooding, resulting in several major disasters and presidential declarations
this year. The worst may not be over, as State officials are preparing for
additional flooding from the snow melt in the mountains as the warm weather
approaches. There are further concerns with potential for mud and rock slides
due to erosion in areas affected by recent wildfires. Damage to your home or
property from such events is not covered by homeowners insurance, and can only
be covered through a separate flood or earthquake coverage. More than 800
emergency or disaster declarations were made in the United States from
2005-20152, resulting in an average of $24 billion in annual insured
losses due to natural catastrophes3. However, the NAIC survey
revealed 56 percent of homeowners have not reviewed their insurance policies in
more than a year and 14 percent are unsure when — if ever — they last reviewed
their policies. Research also indicates nearly half of homeowners (44 percent)
have a home inventory. But of those who have an inventory, more than 40 percent
have not updated it in more than a year.
“As Nevada residents, we’ve experienced a
significant loss from flooding, wind damages and wildfires over the last year,”
said Commissioner Barbara Richardson. “A good way for consumers to be sure to
protect their assets is to consider the risks disasters pose within our region
and how it can impact their home insurance needs.”
Before the Storm
Consumers should re-evaluate
their risk profile at least once a year to ensure their homeowners policy
provides the protection they need. Reach out to your insurance agent or
insurance company and discuss any changes to your risk profile and the adequacy
of your home insurance. Questions to consider include:
·
Am I now at risk? Are earthquakes, wildfires, or
flood now a threat? Do I need a flood insurance policy?
·
What has changed in my home? Did the number of
people (and belongings) increase or decrease? Have I made any major purchases?
·
Have I upgraded my home with a kitchen
renovation, new security system or other improvements?
·
Has there been a change in local community
disaster supports; for example are there new fire prevention or protection
services available?
·
Have I maintained a fire protective zone around
my house? Does it need updated?
·
Should I be looking at different coverage? Can I
save money by bundling my home and auto insurance?
New Disaster Prep
Guides from Insure U can help consumers determine the best course of action
before, during and after a disaster strikes. The free guides include
information and tips for tornadoes, hurricanes,
floods, earthquakes
and wildfires.
Nevada Division of Insurance also publishes Nevada specific guides for
home, flood and earthquake insurance which can be downloaded for free by
visiting http://doi.nv.gov/News-Notices/Publications/.
Disaster Prep Guides are available at insureuonline.org. Consumers interested in
insurance information specific to Nevada can contact the Nevada Division of
Insurance by visiting www.doi.nv.gov.
Sources:
1 - https://www.unisdr.org/we/inform/publications/46796
2 - https://www.fema.gov/disasters/grid/year
3 - http://www.iii.org/fact-statistic/catastrophes-us
About the Nevada Division of
Insurance
The State of Nevada Division of
Insurance, a Division of the Nevada Department of Business and Industry,
protects the rights of Nevada consumers and regulates Nevada’s $14 billion
insurance industry. The Division of Insurance has offices in Carson City and
Las Vegas. In 2016, the Division investigated more than 3,200 consumer
complaints and recovered nearly $5 million on behalf of consumers. For more
information about the Division of Insurance, visit DOI.NV.GOV or download the
Division’s smartphone app NDOI Connect today in the Apple App Store and Google
Play.
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