Released September 5, 2008
STAR CITY, Ark. - The best defense against a disaster is a good offense, according to Jane Newton, Lincoln County extension agent for the University of Arkansas Division of Agriculture.
"Our unwelcome rain and winds from Tropical Storm Fay and Hurricane Gustav demonstrated the need for a good pre-disaster plan," she says. "With uncertainties about where storms Ike and Josephine may strike, now is a good time to review disaster preparedness."
Among the recommendations from the Cooperative Extension Service:
- Establish an emergency fund.
You will need funds to cover deductibles and co-payment clauses in your homeowners, flood, automobile or health insurance policies. Earthquake insurance riders also have deductible clauses. You may need funds for small, uninsured losses.
- Review your insurance policies now to avoid misunderstandings later.
Know what is covered and what is not. Read your policies and ask questions. Do you have adequate coverage? Purchase needed insurance now. Separate policy protection is required for losses due to an earthquake or flooding.
- Practice damage control.
Keep up your property. Perform needed repairs. For example, secure shingles, fix door hinges, strap-down your water heater and install earthquake resistant cupboard latches to prevent unnecessary destruction.
- Update your records.
Inventory your personal property. Keep records in a safe place to help with any insurance settlement.
- Insure Your Risks
Homeowners’ insurance protects your home and/or your personal possessions against certain risks. Check your policy for the list of risks that are included. If you rent, live in a condominium or mobile home, you can purchase a homeowners’-type policy. Coverage includes damages to the dwelling, other structures and your personal property (check for exemptions and reimbursement limits on specific items such as jewelry and guns). Coverage also includes additional living expenses and/or reimbursements for some or all of your costs for temporary housing while your damaged home is repaired or replaced.
"Your homeowners’ policy may protect against perils such as fire and lightning or have extended coverage for damages from windstorm or hail, explosions, riot, other aircraft or vehicles, glass breakage or smoke," Newton says. " If you have broad form coverage, 17 perils are covered. Most home insurance policies do not cover losses and damages because of earthquakes or floods."
The premium for an earthquake rider will depend on the location, structure and value of the home. In most cases, reimbursement for losses is subject to a deductible. Check your policy.
Ask if the earthquake rider will cover the structure and the contents or just the contents. If you have a homeowners-type policy for your rental unit, check to see if you can purchase an earthquake rider on your possessions. Since each company is different, ask questions so that you understand the terms of your own policy.
Standard homeowners’ policies do not cover flood losses, Newton says. If your house is located in a flood-prone community that has a flood plain management program in compliance with the National Flood Insurance Program (NFIP), you may be eligible to purchase low-cost flood insurance.
More extensive information is available online at http://www.uaex.edu/Other_Areas/publications/PDF/FSHEC-67.pdf or request fact sheet FSHEC-67 from your county extension office.
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http://www.uaex.edu/news/september2008/0905disaster_financial_prep.htm
Contact: Lamar James, (501) 671-2187, ljames@uaex.edu
