“Is Our Home Fully Insured?”

In Southern California, during the wildfires, this question was asked many times. And the answer is that 40% probably were, while 60% were underinsured by an average of 20%. So, as you can imagine, there were some nervous people in So Cal when the temperature rose and the Santa Ana winds blew. To make sure you are fully covered, follow these simple steps:

1) Know how much is your home is insured for. You can find this information from the Declarations Page (it comes with the policy) or call your agent.

2) be aware that the replacement costs are about $200 to $250 per square foot.

3) To be fully reimbursed, document what you own. In cases where there is a dispute, documentation always wins. Keep receipts, photos and videos of your stuff. I made a documentary called “All My Shi*.” I went from room to room with a video camera narrating, “This is the couch I bought at Pier One in 2005 for $800….” Not stuff for the Academy, but it works. Once you’ve done that keep the video at your office or in a fireproof safe.

4) In the event of a disaster, call your agent and he or she will be able to help you get sorted out with emergency funds for hotel rooms, clothes and food.

The claim process can be scary, so lean heavily on your agent for guidance. But the best way to be prepared for a claim is to be certain your coverages is current. Spent 30 minutes a year with your agent and review your policies. Not only with you sleep better knowing you are adequately covered, but your agent is usually good for a cup of coffee and a cheesy keychain.