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Be Ready for Summer Storms:

Know Your Coverage

June 8, 2009

What damage does your insurance cover?
You may know that a tornado could touch down in your neighborhood—or that it’s unlikely, depending on where you live. But what about other dangers, like floods, wild fires or earthquakes? As the weather continues to change globally, it’s good to look at all of the risks your home or business could face and make sure you have the proper protection if something were to happen.

First, know your risk
What dangers are likely in your area? The Institute for Business & Home Safety (IBHS) can tell you. Visit www.disastersafety.org and enter your ZIP code for a customized listing of what natural disasters you are susceptible to and how to prepare for them.

Floods—are they really minimal risk?
If floods are a threat in your area—even a low-risk—think about flood insurance. One-third of all flood claims occur in minimal-risk areas. Plus, no homeowners insurance will cover flood damage from natural disasters. The damage is just too prevalent to insure at a reasonable cost through regular homeowners insurance.

To make purchasing flood insurance easy, ERIE works with American Bankers, a premier “write your own” insurer for federal flood insurance. Your Agent can tell you about the benefits of flood insurance and how much it costs in your area. 

**NOTE: If you’re considering flood coverage, don’t delay: flood insurance requires a 30-day waiting period.

Other types of risks
ERIE can also help insure against risks such as earthquakes and hail damage. Sometimes, though, you’ll need an additional endorsement to have the kind of replacement coverage you want. Your Agent can tell you what endorsements are available.

Know how much is covered
While the summer is young, talk to your ERIE Agent about how much your insurance covers. Depending on the limits you originally set, your policy may not cover the entire cost of rebuilding of repairing your home and other structures, such as sheds, garages or gazebos. If it doesn’t, your Agent can help you change the policy so those costs are covered. At the same time, you can add valuable endorsements that are right for your area.

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