Do You Need Disaster Insurance?

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 riskThe probability that an investment will decline in value in the short term, along with the magnitude of that decline. Stocks are often considered riskier than bonds because they have a higher probability of losing money, and they tend to lose more than bonds when they do decline. 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.