Additional Homeowners Insurance Coverages
A variety of endorsements is readily available by insurers and can
be added to a policy for additional charges. Policy endorsements modify
or extend certain coverages provided by the policy under certain conditions.
Earthquake insurance and backup of sewers or drains are just two of
the many homeowners endorsements available.
Earthquake Insurance
Earthquake protection is not automatically provided under homeowners
policies, but may be added by an endorsement if offered by your insurer.
Property owners concerned about damage to home or personal property
from an earthquake may obtain the earthquake endorsement for an additional
premium. Owners of frame structures pay lower rates than those in masonry
buildings, since frame buildings are better able to withstand earth
tremors. Nevada is at higher risk for earthquakes than most people think.
Surprisingly, Nevada ranks third behind California and Alaska as the
state most likely to experience an earthquake.
Backup of sewers and drains
Many insurance companies offer an endorsement that provides coverage
for the backup of sewers and drains. Some “preferred” policies
may automatically provide this coverage under the homeowners policy.
Check coverage limits with your insurance agent or company representative,
as they will vary.
Flood Insurance
Flood insurance is excluded under standard homeowners and renters policies.
Flood insurance is available for purchase, however as a separate policy.
If you are moving into a new home, apartment or business location, make
sure you have adequate insurance coverage. Contact your insurance agent
for information on the flood risk to your property. Homeowners need
to be aware that there is a 30 day waiting period required for flood
insurance to take effect. Should your home fall victim to a flood, remember
to inspect it for damage, especially for cracks in foundations. Take
pictures of damaged property and keep notes. Also make an inventory
of your possessions and store it off the premises. Use pictures and
inventory lists to help your insurance company determine the extent
of the damages and to facilitate the insurance claim process. Although
flood insurance is available through insurance companies, policies are
underwritten and issued by the National Flood Insurance Program (NFIP
as part of the Federal Emergency Management Agency. Contacts for flood
safety and insurance information include:
- National Flood Insurance Program (888)CALL-FLOOD
- National Flood Insurance Program Agent Referral (800) 427-4661
- National Flood insurance Program Web site: http://www.fema.gov
- Residents of Clark County can visit the Clark County Regional
Flood Control District’s website at www.ccrfcd.org
to determine if their home is in a flood zone.
Major Catastrophes
Catastrophes such as fires, riots, floods and hurricanes cause millions
in property damage and affect multiple insurers. In the insurance industry,
a catastrophe is defined as an event that causes $25 million or more
in insured property losses and affects a significant number of policy
holders.
Fire
According to the National Fire Protection Association, on average, a
fire department responds to a fire every 20 seconds in the United States.
A structure fire occurs every 61 seconds; a residential fire occurs
every 79 seconds; vehicle fires occur every 101 seconds.
Homeowners insurance policies will provide compensation for loss due
to fire, based on the limits set in the individual policy. It is important,
though, to make sure you have replacement cost limits that are up-to-date
for your home. Payment is not automatic. You must provide documentation
of your home’s contents to receive compensation for the loss of
the property. Keep a home inventory of your personal property. Take
still or video photos of each room and make a comprehensive list of
contents. Keep receipts on major purchases. Put all of this documentation
in a safe place, away from your home, such as a safe deposit box.
Wildfires continue to be a major concern in Nevada. For example, the
Waterfall Fire in Northern Nevada and the Mt. Charleston wildfire in
Southern Nevada in 2004 were both large fires with property damages.
To help educate and protect Nevadans living in forest areas, the Nevada
Insurance Council is a sponsor of the Nevada Fire Safe Council, a nonprofit
organization whose mission is to help Nevada’s high fire hazard
communities reduce wildfire threat. The Nevada Fire Safe Council assists
communities by funding wildfire reduction plans for neighborhoods, fuel
breaks, removal of flammable vegetation from around homes, and related
projects.
Commercial
Commercial insurance generally provides insurance products for businesses,
such as workers compensation, general liability, fire, ocean marine,
surety and fidelity, crop and machinery insurance.
Terrorism
The worst terrorist attack on record in terms of insured property loss
and fatalities were the September 11, 2001 attacks on the World Trade
Center and the Pentagon, which resulted in $18.8 billion in insured
property losses and 2,976 deaths, according to official government reports.
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