Do You Need Disaster Insurance? - Adviser Investments

Do You Need Disaster Insurance?

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Our advisors think through worst-case scenarios—even ones that are impossible to predict; hence, disaster insurance. So please call us if you or your loved ones are ever impacted by such an event. Meanwhile, here are some ways we can be ready when lightning (or another natural disaster) strikes.

  1. Understand what is covered. Your home insurance policy likely covers many types of disasters and weather events, including wind, fire and lightning strikes. However, it does not always cover damage from floods or earthquakes. Talk to us if you live in a flood zone or are at high risk for other types of natural disasters so we can discuss the need for a separate policy.
  2. Take inflation into account. If you haven’t updated your homeowners policy since completing a major renovation, it’s time to make sure your cost to rebuild is covered in today’s dollars. Your policy may have been suitable when you first moved in, but rising costs for materials and labor may mean your payout level is insufficient today.
  3. Act fast to process your claim. Always file an initial claim with your insurance company as soon as you can after a disaster, even if the claim is incomplete—you want to secure your place in the queue. Report big-ticket items first to open the claim, then add to your file as you continue to document lost items. Depending on the language in your policy, filing fast may qualify you for an immediate payout to help with living expenses.
  4. Navigate mortgage snags and property-assessment issues. Depending on the severity of the damage or loss, talk to your lender about a temporary break on your mortgage—they may work with you to waive payments for a limited time. And check with your town to see if your property taxes will decrease, assuming you believe the damages may lower the resale value of your home.
  5. Get ahead of tax considerations. The IRS may extend certain tax deadlines for affected taxpayers if the losses are grave enough. And in some cases, you can take a casualty deduction.
  6. Revamp your financial plan. If you find yourself underinsured in the wake of a disaster, we can help by reviewing your financial plan to examine the effects and suggest next steps. We would also be happy to discuss your homeowners insurance policy to make sure it meets your needs.

Don’t hesitate to call us to help you prepare for and respond to natural disasters or any event that could change your financial picture. We’re here for you.

This material is distributed for informational purposes only. The investment ideas and opinions contained herein should not be viewed as recommendations or personal investment advice or considered an offer to buy or sell specific securities. Data and statistics contained in this report are obtained from what we believe to be reliable sources; however, their accuracy, completeness or reliability cannot be guaranteed.

Our statements and opinions are subject to change without notice and should be considered only as part of a diversified portfolio. You may request a free copy of the firm’s Form ADV Part 2, which describes, among other items, risk factors, strategies, affiliations, services offered and fees charged.

Past performance is not an indication of future returns. Tax, legal and insurance information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice, or as advice on whether to buy or surrender any insurance products. Personalized tax advice and tax return preparation is available through a separate, written engagement agreement with Adviser Investments Tax Solutions. We do not provide legal advice, nor sell insurance products. Always consult a licensed attorney, tax professional or licensed insurance professional regarding your specific legal or tax situation, or insurance needs.

Companies mentioned in this article are not necessarily held in client portfolios and our references to them should not be viewed as a recommendation to buy, sell or hold any of them.

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