Your insurance policy probably won’t cover a natural disaster unless you update it

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The tornado recovery effort in central Texas is still in its early stages.

“We know the recovery process is a long road and we anticipate it will take many months, if not years, for those who still need to rebuild their homes,” said Austin Disaster Associate Director Stephen Brewer. Relief Network.

Although many people have home insurance, there is one major problem Brewer said he encounters, and that is gaps in coverage.

“While they had great coverage for their home, with market rates and home values ​​increasing, the current rate was not what they insured it for,” Brewer said.

Quote Wizard, an online insurance marketplace, has studied this phenomenon and noticed that it is happening nationwide.

“Home prices and material prices have risen so rapidly that they have outpaced the value of people’s home insurance,” said Nick VinZant, principal research analyst at Quote Wizard.

“So if you had a $400,000 policy two years ago, the cost of rebuilding your house now is no longer $400,000. It could be $450,000 or $500,000,” said said VinZant.

This gap will have to come out of your pocket. VinZant said that with spring and the season of natural disasters, people should make this call immediately, before it’s too late.

“Call your insurance agent, look for a new policy, and make sure you’re fully covered,” VinZant said.

In the meantime, the ADRN has stepped in and continues to raise funds to help these families.

“We have been diligently fundraising to help meet the needs of people who are experiencing gaps in their insurance as well as who need comprehensive insurance and coverage, or who do not have insurance. “said Brewer.

To make a donation to the ADRN cause, click here.

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