Illinois Department of
Insurance Reminds Homeowners of Their Options Following
Summer Storms
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[July 18, 2017]
SPRINGFIELD –
Following severe summer storms, the Illinois Department of Insurance (DOI)
wants Illinois families to know the range of options they have when it
comes to their homeowners insurance.
How can I make sure I have the correct homeowners insurance?
Consumers should re-evaluate their risk profile at least once a year to
ensure their homeowners policy provides the protection they need.
Questions to consider include:
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Am I now at risk?
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Are tornadoes now a threat?
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Do I need a flood insurance policy or
sewer backup coverage?
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What has changed in my home?
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Did the number of people (and
belongings) increase or decrease?
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Have I made any major purchases?
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Have I updated my home with a kitchen
renovation, new security system or other
improvements?
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Should I be looking at different
coverage?
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Can I save money by bundling my home
and auto insurance?
I thought I was covered but I’ve learned that I’m
not.
Coverages: Most homeowners insurance policies provide a
package of coverages. The main types of coverage are described
below. Keep in mind that you're covered only if the loss is caused
by a peril your policy covers. For example, if your home becomes
unlivable due to an earthquake and your homeowners policy doesn't
cover earthquakes, your policy won't pay for loss of use of your
home. Review your policy for the limits of your coverage.
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Dwelling. Pays for damage to your
house and to structures attached to your house. This
includes damage to fixtures, such as plumbing,
electrical wiring, heating and permanently installed
air-conditioning systems.
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Other Structures. Pays for damage to
fences, tool sheds, freestanding garages, guest
cottages and other structures not attached to your
house.
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Personal Property. Reimburses you for
the value of your possessions, including furniture,
electronics, appliances and clothing, damaged even
when they aren't on your property, such as those at
an off-site storage locker or with your child at
college.
-
Loss of Use. Pays some of your
additional living expenses while your home is being
repaired.
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Personal Liability. Covers your
financial loss if you are sued and found legally
responsible for injuries or damages to someone else.
-
Medical Payments. Pays medical bills
for people hurt on your property or hurt by your
pets.
-
Peril is an insurance term for a
specific risk or reason for a loss. Some policies
cover all perils except ones specifically excluded.
At the other extreme are policies that cover only
the perils named in the policy.
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Endorsements/Additional Coverage:
Flood
Standard homeowners policies do not cover flood damage. However, if you have a
flood insurance policy, your company or the National Flood Insurance Program (NFIP)
will assign an adjustor to handle your claim. To contact NFIP call 800-638-6620.
If your home is not covered for flood damage, you should ask the representatives
at the local disaster application center or the toll-free disaster tele-registration
hotline (800-621-3362) if you are eligible for financial assistance.
Mine Subsidence
Standard homeowners policies do not cover damage due to mine subsidence unless
you paid an additional premium for a mine subsidence endorsement.
Earthquake
Standard homeowners policies do not cover damage due to earthquakes unless you
paid an additional premium for an earthquake endorsement. If you do not have
earthquake insurance, any damage that can be directly attributed to the quake
would not be covered.
If you purchased an earthquake coverage endorsement, your company will assign a
representative to evaluate your damage. If you did not purchase earthquake
coverage, you should ask the representatives at the local disaster application
center or the toll-free disaster tele-registration hotline if you are eligible
for financial assistance.
Homeowners insurance contracts generally have a stated deductible (e.g. $250)
for claims such as fire and theft. The deductible for earthquake coverage is a
stated percentage (e.g. 5%) of the amount of insurance you carry for each
coverage under the policy.
If, for example, a homeowners policy provides $100,000 of coverage on the
dwelling, $50,000 on the contents, and $10,000 on an unattached garage and the
earthquake deductible is 5%, there would be an earthquake deductible of $5,000
on the dwelling, $2,500 on the contents and $500 on the unattached garage.
Since all insurance contracts are not the same, you should ask your insurance
agent to review your policy and earthquake deductible.
If people still have questions about their coverage, DOI has developed a useful
resource center at
http://insurance. illinois.gov/HomeInsurance/consumer Homeowners.html.
Should someone want to speak with DOI staff members, they can call 866-445-5346.
[Illinois Department of Insurance]
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