Earthquakes typically occur without warning, so there’s no time like the present to help make sure your home is safe. Consider these precautions to help protect yourself and your belongings before an earthquake happens.
Scan Your Home for Potential Hazards
Household items can be shaken loose or fall during an earthquake. Make sure heavy items like mirrors or wall art are not hung directly above a bed or couch. With that in mind, go room by room and take stock of any objects that might fall if they are jostled by an earthquake. Consider moving these pieces away from where someone could be sleeping or sitting.
Store Items Safely
Consider moving heavy, fragile items such as china and glassware to lower shelves or cabinets closer to the floor. You may also want to use bolts or latches on drawers and cabinets to help keep them closed.
Keep Furniture and Appliances Secure
Some top-heavy furniture like a bookcase or even a TV stand should be anchored to wall studs. If you’re not comfortable bolting the furniture yourself, consider bringing in a professional.
Stock an Emergency Kit
Before an earthquake occurs, consider building an emergency kit for you and your family. This kit should include at least three days’ worth of food and water, a whistle, a flashlight and a fire extinguisher. Remember, you want to customize your kit to your family’s specific needs. If you have a pet, make sure to also include items for your furry friend like their food, water, carrier and leash.
Know How to Shut Off Utilities
It’s important to know how to shut off the utilities to your home in case of an emergency. It’s worth having a wrench handy in order to turn off the utilities after an earthquake occurs to help prevent gas leaks or electrical sparks from igniting items in your home. If you’re not sure how or where to shut off your utilities, contact your utility company or speak to a professional.
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Your home is protected by dwelling coverage (also called “Coverage A”). The amount of dwelling coverage is usually based on the cost to rebuild your home. Most standard policies cover your home at Replacement Cost Value (RCV). That means if your home is insured up to $250,000, then you may get up to that amount to rebuild if your home is destroyed. Just make sure your dwelling coverage amount is enough to cover you in case a complete rebuild is necessary.
Your belongings
Your belongings are covered by “personal property” coverage on your policy. When insuring your belongings (meaning everything you own inside of your home and in storage), you can choose between Actual Cash Value (ACV) and Replacement Cost Value (RCV). Most insurance policies default as ACV, but you can usually switch to RCV for an increased price. For example, if you paid $5,000 for a new couch 10 years ago, and it was destroyed in a fire, the ACV options would typically pay the current value of the couch (cost less depreciation) whereas the RCV option would typically pay what it costs to replace your couch, which could be more or less than $5,000, minus your deductible.
Which option is best?
Like most insurance questions, it depends on your situation. Actual cash value insurance is usually the more affordable option. But, ACV may not offer enough coverage if something is damaged. The payout amount you’ll get from your insurer will likely be higher with replacement cost insurance. So, it’s a trade-off.
There are different insurance packages available under Arvada homeowners insurance that will protect your home and your belongings. It’s important to know which risks an Arvada homeowners insurance poiicy covers and which risks it excludes. Each policy will include the same basic coverages like protection against fire, windstorm, and theft. However, it’s important to review your policy’s exclusions because events you think are covered, like flood, are probably excluded on your Arvada homeowners insurance policy.
The following coverages are the most basic insurance coverages to an Arvada homeowners insurance policy:
1. Damage to Real Property
Real Property applies to your home’s structure or dwelling. Your dwelling limit will also usually include coverage for other structures on your property like a detached garage or shed at a smaller specified amount (i.e. 10% of the dwelling amount) as well.
The dwelling limit can include some additional coverages for removing debris, the increased cost of construction, cost of reasonable repairs to protect your dwelling from further damage, the removal of trees and shrubs, and any fire department service charge for responding to a claim.
2. Damage to Personal Property
Personal property is usually defined to protect any property and personal belongings within the walls of your home owned by you or other family members living in the home.
Your personal property insurance limit is usually calculated as a percentage of your dwelling value (50 to 75%). It’s important to note that your personal property coverage will limit the amount it will pay on certain items like jewelry, guns, computers, silverware, and expensive antiques.
3. Additional Cost of Alternative Living Expenses
Most Arvada homeowners insurance policies will pay the expenses of alternative living expenses (i.e. hotel) for covered claims to the dwelling or personal propety. The policy limit is usually a percentage of the dwelling’s value as well (i.e. 20%).
4. Personal Liability Coverage
Personal liability coverage protects you and your family against claims (non-auto or business related) that result in bodily injury or property damage to others. The amount of coverage available is usually $50,000 to $500,000 in liability protection. For amounts higher than that, you should consider purchasing an umbrella insurance policy.
5. Medical Payments
Medical payments is a small sub-limit coverage designed to pay small medical bills and expenses for people injured on your property. This coverage is considered a “no-fault” coverage meaning that it doesn’t matter who was negligent as the policy will pay the limit regardless.
If you are interested in an Arvada homeowners insurance quote or wouldl like to find out if your current insurance coverages are adequate for your situation, please don’t hesitate to contact our office.