Now That Irene Has Moved On – Are you Covered?

The calls began flooding in Thursday morning from home owners who were making sure their home insurance policies were in force, what kind of damage would be covered from the imminent hurricane and if they could purchase flood insurance, said Lori Cicali, a direct insurance writer for Allstate Insurance and owner of the Heights Insurance Agency, located at 302 Springfield Ave., Berkeley Heights.

“I had to tell those who were interested in purchasing flood insurance that there is a 30-day waiting period from the time the insurance is purchased to when it goes into effect, so as far as this storm is concerned, they missed the deadline,” said Cicali.

The only exception to the flood insurance coverage waiting period is if someone is closing on a house, then the insurance takes effect immediately.

Cicali explained that damage that comes from ground water is covered by flood insurance, and damage from water coming in through the roof, walls, broken windows and pipes is generally covered by home owners insurance.

But check your policy. A home insurance agent in Hackettstown said that if a sump pump fails because of a power outage, some home owners policies only offer limited coverage, as little as $1000. And as of Friday, Aug. 26th, no coverage changes were allowed.

Cicali said anyone can purchase flood insurance and the rates depend on the likelihood of a flood in your area.

For those who felt the shake, rattle and roll of the earthquake on Tuesday, Aug. 23, 2011, and may have wondered whether your home owners insurance covers earthquake damage, there are a few carriers who do offer earthquake coverage, according to Daniel Jovic, Senior Communication Consultant, for the Allstate New Jersey Insurance Company.

In the event a home has sustained damage to the extent that it is uninhabitable, Cicali, who has been in the insurance business for 24 years, and an independent contractor for 11 years, said most policies do provide coverage for the home owner to stay at a hotel or in some sort of temporary housing.

“During the last five years our weather patterns have changed drastically and as a result, we are seeing many more claims and higher claims,” said Cicali.

Cicali said that her agency is bracing for the onslaught of claims that are likely to begin coming in now that Irene has made her presence known.

“This is when we shine. We are here for the insured and we make sure that we answer all their questions and address their concerns,” said Cicali.

Now that storm has passed, Jovic suggested the following steps to begin picking up the pieces and filing a claim. 

"Make sure your home is structurally safe. If your home has sustained serious structural damage, be extremely careful and be sure it is safe to be inside the home," said Jovic. 

He suggested making reasonable temporary repairs to prevent further damage. Save the receipts for temporary home repairs as these expenses may be reimbursed as part of your homeowner’s policy. Your adjuster will need this information.

If your home is uninhabitable, review your policy to find out what additional living expenses your insurance policy may provide. Keep any receipts for expenses that may be reimbursed as part of your homeowners policy.

Prepare to file an insurance claim by gathering all relevant policy numbers. Report possible claims promptly.  Inventory your home and list damaged items before your adjuster arrives. An inventory can help facilitate the claim process after a disaster.

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For more information about our interviewee Lori Cicali and Height Insurance Company, visit their Web site.