Ask the Advisor: Disaster-Proof Your Insurance Coverage

Laura Holmes is a Licensed Insurance Agent with SchoolsFirst Insurance Services, specializing in personal lines policy.  With more than 10 years of experience in the insurance industry, Laura has developed an understanding of the importance of insurance and managing risk. She is dedicated  to assisting Members in understanding what is needed to properly protect themselves and their family. 

Most people don’t worry much about their insurance coverage until they need it. So if you haven’t read your policy’s fine print—believe me, you’re not alone. That’s why I recommend getting a complimentary insurance review to help you figure out if you have what you need.

Overdue for that review? Here are some questions to help you decide.

Homeowners and Renters Insurance

If your home is damaged because of an earthquake or flood, would your insurance pay to have it fixed? Hint: Most policies don’t include coverage for these perils. You’ll most likely have to add earthquake on to your existing policy and purchase a separate flood insurance policy through the National Flood Insurance Program.

Another question: Does your homeowners or renters insurance include actual cash value (ACV) or replacement cost coverage? The first fixes home damages and replaces your belongings, minus depreciation—which means it won’t cover your losses at full value. Unlike ACV, replacement cost coverage pays for all the damage, no depreciation at all. This translates into big savings if you have to file a claim.

Car Insurance

If you live in fire, flood or earthquake country, your car can take a beating should catastrophe strike. Does your insurance include both comprehensive and liability coverage?  Don’t know?  If your car is damaged due to a natural disaster, comprehensive coverage will fix it, liability will not.

Minding the Extras

You may be thinking: What extras? If you don’t know, a review can help you find out if you need the following:

Umbrella Insurance—Extra liability insurance that protects you and your assets against major claims and lawsuits.

Valuable Personal Property Insurance—Covers valuables including things like jewelry, coins, collectables, and family heirlooms.


CA Insurance License 0I19344

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Extra Credit provides general information to help improve our Member’s financial lives. Every situation is different, so please contact us for guidance on your specific needs. The advice provided in Extra Credit is not intended to serve as a substitute for speaking to a loan representative, financial advisor, or BALANCE counselor who can help tailor a solution for you.

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