Camp Fire - Insurance Coverage
Were you affected by the Camp Fire?
Unsure of what’s covered by your insurance?
Determining and maximizing insurance coverage for debris removal is trickier than you’d think. As we advised before, if you’re a homeowner in the debris removal program, you should first determine your insurance coverage for debris removal. Asking your insurance agency this simple question is more complex than we first thought. Here’s what you should ask your insurance agent:
- What does my insurance cover for debris removal?
- Is that portion of my insurance coverage separate from replacement costs coverage for my structure, contents, and other structures on my property?
We have found that most insurance companies have coverage that goes beyond simple replacement costs. (i.e. the coverages for debris removal, or at least a portion of, would be provided by your insurance beyond your standard coverage at no cost to you).
Most insurance companies provide coverage and replacement costs for 3 distinct items:
- Your structure
- Your contents/possessions
- Other structures on your property
Each of these items has a policy limit specific to your property (many insurances let you utilize 5% of the policy limits for each distinct item). Your coverage for debris removal is likely a cumulative total of:
- 5% of your policy limit for structure replacement
- 5% of your policy limit for content/possession replacement
- 5% of your policy limit for other structures replacement
Utilizing these 5% portions of your coverages typically doesn’t come out of the replacement costs provided by your insurance company. Make sure to verify this with your insurance company since this information may not be disclosed without you asking for obvious reasons.
Please feel free to contact us if you have further questions or need additional information!
Clay Guzi, Steve West, and the Guzi-West team
888-351-8189 x 1; firstname.lastname@example.org