IN LIGHT OF HURRICANE KATRINA, REVIEW HOMEOWNERS COVERAGE
From the American Insurance Association
FOR IMMEDIATE RELEASE |
Contact: Julie Pulliam IN LIGHT OF HURRICANE KATRINA DEVASTATION, AIA URGES CONSUMERS TO REVIEW HOMEOWNERS COVERAGE AIA Brochure Provides Timely Tips ATLANTA, Sept. 7, 2005 - Now is the time for consumers living in states threatened by hurricanes or their aftermath to ensure that their homeowners’ insurance policies provide sufficient coverage. The American Insurance Association (AIA) has developed an easy-to-read brochure for consumers to use in conducting an annual insurance check-up. “Hurricane Katrina’s devastation serves as a powerful reminder that consumers who live in coastal states as well as inland areas prone to flooding should review their homeowners’ policies, and then call their insurance companies or agents to discuss whether they have adequate coverage for their property and personal belongings,” said Eric Goldberg, AIA assistant general counsel. “Last year’s Atlantic hurricane season was one of the most destructive in recent history, causing $23 billion in insured damage. Unfortunately, the 2005 season may be even more costly. The good news for consumers still untouched by threatening weather is that they still have time to conduct a thorough insurance check-up.” The bad news is that a majority of homeowners don’t have adequate insurance. Marshall & Swift/Boeckh, a company that provides property valuation services to the insurance industry, estimated that last year 61 percent of U.S. homes were underinsured by an average of 25 percent of what it would cost to rebuild them. In determining adequate coverage, consumers need to pay special attention to current construction costs and building code upgrades in their area, take into account home upgrades or remodeling, and be aware of limits or exclusions in their homeowners’ policy. Completely reviewing homeowners’ policies is a good idea not just for coastal residents, but also for consumers in inland areas that are prone to flooding. The 2005 hurricanes have brought coastal flooding due to storm surge, inland flooding like that experienced in New Orleans, as well as flooding at higher elevations as the storms have brought heavy rainfall to locations hundreds of miles from the coast. A separate flood policy, available from your insurer or from the federal government, is required to cover damage due to water intrusion. AIA suggests consumers take the following steps in conducting an insurance check-up: “A homeowners’ policy is a contract between the policyholder and the insurance company. The insurer understands the terms and conditions of the contract – the policyholder should, too,” said Goldberg. “Your insurance agent or company representative will be happy to walk through your policy and answer any questions you may have. Completing an annual insurance check-up today could be much less costly than waiting until after a storm strikes to discover that you don’t have adequate coverage.” A copy of AIA’s hurricane season insurance check-up brochure can be accessed on AIA’s home page under the State Section:http://www.aiadc.org/AIAdotNET/Files/Public/hurricaneseason.pdf # # # The American Insurance Association represents over 435 major insurance companies that provide all lines of property and casualty insurance and write more than $120 billion annually in premiums. The association is headquartered in Washington, D.C., and has representatives in every state. All AIA press releases are available at http://www.aiadc.org/ ------------------------------------------------------------------------------ |
posted by RonL @ 5:30 PM
0 Comments:
Post a Comment
<< Home