Ensure your home is worry-free if disaster strikes

As most of you know my company specializes in fire, flood, mold and trauma scene cleanup. Because of that fact, more than 70 percent of my business involves insurance companies and their adjusters.

I'm often asked by the homeowner questions about various insurance companies' business policies and how it affects them. I generally refer the property owner to their insurance agent or broker for the appropriate answer to their question. I must state that I'm not an insurance specialist; I do try to act as the owners' advocate when repairing their home because my fiduciary responsibility is to bring the home back to its pre-loss condition.

In this week's article I thought I would briefly discuss insurance from a consumer's point of view.

Home insurance is an expensive purchase for most of us. That cost is generally determined by several factors, including type of construction, age of the home, fire protection available, amount of coverage, deductible amount, discounts, and credit reports.

The coverage offered to homeowners is typically contained in a package of liability and property coverages found in the homeowner's policy. It generally does not address limited offerings of fire and flood coverage.

Some may wonder why buy home insurance. Home insurance is not required by law in most states; however, most lenders require the homeowner to maintain insurance as a condition of the loan. Insurance provides protection in the form of monetary compensation should your home or personal property become damage. For the tenant, it protects their personal property within the building. And generally, it provides liability protection for accidents that injure other people or their property.

I'm often asked "How much insurance should I have had?" This question usually comes up when the homeowner's insurance policy doesn't cover all of the cost associated with the repairs needed to the home. I highly recommend homeowners review their policies with their agents and brokers every six months. This practice will help protect the homeowner from future financial loss should a disaster happen.

I'm often asked, "Who is the best insurance company?" I generally respond with each company has its positive and negative side. As the consumer, I highly recommend you shop around. Some of the questions you should ask are:

1. Is your agent or broker available for a face-to-face meeting?

2. Do they have an in town adjuster? Very important

3. Are there discounts for multiple policies? Home and auto.

4. Are there local phone numbers to call should you need assistance?

5. What is their response time to a disaster?

6. Will they refer me to a general contractor who can help me?

7. How much will my premium be reduced with a higher deductible?

8. If your retired, do you get discounts?

9. Do you get discounts for a good credit rating?

10. If you buy a home in a flood plan, do you have to have flood insurance?

11. Does your policy cover the building contents? Very important.

Once you have selected the insurance coverage you need and the insurance agent or company, there are steps you can take to make certain you get your money's worth. Before signing an application for any coverage, contact your state insurance department and verify that the company and agent you are dealing with are licensed in your state. It is illegal for unlicensed insurers to sell insurance. Business cards are not proof of a licensed agent or company. If you buy from an unlicensed agent, you have no guarantee that your claim will be honored.

Every state has a safety net to protect insurance consumers from financial loss in the rare event that company becomes insolvent.

If you get a call from an unlicensed agent or company, call your state insurance department immediately so that legal action can be taken against them.

In closing, here is some cowboy wisdom:

1. Live good, be honorable. Then when you get old and think back, you'll enjoy it a second time and won't have to worry about getting your butt whipped.

2. The easiest way to eat crow is while it's still warm.

If you would like to share a cleaning idea or concept with the reading audience, call Ed at NWES (255-2266), e-mail them to madan@nwees.com or send them to Bonner County Daily Bee, 310 Church street, Sandpoint, ID 83864, Attn: What would Ed do? For more information about Ed, and his new handyman services, check him out at NWEES.COM.

Copy written by Edmond E. Madan, certified forensic, fire, flood, mold inspection and remediation/restoration contractor. Ed is the president of Northwest Environmental Services, Inc.