OXENDINE: MANY HOMEOWNERS UNPREPARED;
REVIEW YOUR COVERAGE BEFORE DISASTER STRIKES

Atlanta – Insurance Commissioner John W. Oxendine said a recent survey showed nearly half of
Americans don’t have adequate coverage for their home.
“Take a few minutes to check your homeowners policy,” Oxendine said. “Do you have adequate coverage to rebuild and replace if the worst happens? Has your policy kept pace with the value of your home? Even considering the recent drop in real estate values, your house could still be worth more now that it was when you first insured it, if you’ve lived in it even a few years.”

The National Association of Insurance Commissioners (NAIC) found that
43 percent of those surveyed owned policies with replacement cost payout,
27 percent insured for actual cash value,
28 percent did not know which type of coverage they purchased.

Actual cash value is the amount it would take to repair or replace damage to a home and its contents -- after deducting for depreciation. Replacement cost is the amount it would take to replace or rebuild a home or repair damages with materials of similar kind and quality at today’s prices.

“The difference between used value and new can be tremendous, especially with items such as furniture, appliances and clothes,” Oxendine said.
The survey also found that the majority of consumers do not have the coverage necessary to protect themselves from specific types of losses that are not reimbursed under standard homeowners policies:

• 69 percent do not have earthquake insurance.

• 65 percent do not have flood insurance.

• 56 percent do not have insurance for a water line break.

• 55 percent do not have insurance for a sewer line break.

“Storm season is just getting started, and hurricane season is approaching,” Oxendine said.
“Don’t wait for disaster to strike; check your coverage now.”

Oxendine said Georgians can call his Consumer Services Division at 404-656-2070, or 800-656-2298, for advice on homeowners or any other kind of insurance. Calls are taken from 8 a.m. to 7p.m. Monday through Friday. You may also visit the Commissioner’s Web site, www.gainsurance.org
for more information.