COTTAGE GROVE SENTINEL | OCTOBER 7, 2021 | 3A
Notes on homeowner’s and flood insurance
Contributed by Steve Kleiner
With more frequent natural disasters
like wildfires and floods on the increase,
questions arise about what insurance
covers as a result of damage from these
events. Here are a few things to consider:
Homeowner’s Insurance
Don’t over or under insure your home.
If your home is destroyed by fire or an
event other than a flood, your insurance
will pay for the reconstruction cost to re-
build your home, not reimburse you for the
market value.
With high home prices it’s not uncom-
mon for a home that is worth $400,000 on
the market having a reconstruction cost
far less than that.
Most policies have a 20 percent factor
above the insured dwelling amount to
cover excess rebuilding costs. Insurance
companies get quarterly updates with cur-
rent material and labor costs so it’s wise
to ask your agent if the construction cost
estimate for your home is current.
There have been severe upswings in
material costs as well as labor shortages
which can affect this estimate more often
than usual. Other structures not attached
to your home like detached garages, sheds,
outbuildings, and fences are usually cov-
ered at 10 percent of the dwelling coverage
amount.
If you are within the wildlife/urban
interface (WUI) insurers may rate your
property based on the likelihood of loss
by wildfires. They will consider the de-
fensible space around your home and if in
a very high hazard area may even cancel
your policy.
Some use a scoring system by third par-
ty companies to determine your rating.
Coverage for decorative trees and shrubs
are limited. Trees in the forest around
your house and the value of your land are
not. You’ve heard it before: Be Firewise!
Actual cash value (ACV) vs. Replace-
ment cost.
Actual cash value is the depreciated
amount of the insured item. If your TV
cost $500 and it’s several years old, you
will get the depreciated amount as your
settlement for the loss.
ACV is most common for the contents
coverage of your home and in some cases
PHOTO COURTESY OF STEVE KLEINER
Homes destroyed by wildfires and floods may be more of a risk as extreme weather events increase.
the roof. Replacement cost will reimburse
you for the current cost to replace the
same or similar item. Review your poli-
cy for these two factors both for dwelling
coverage and contents. There are cases
where a home is covered at replacement
cost but the roof is covered as ACV.
Water Damage
If an errant drone crashes into your roof
during a rainstorm and the water coming
through the hole causes extensive damag-
es to the interior, this is covered by your
homeowner’s policy as is a burst pipe or
blown water heater.
But, if a rainstorm causes a torrent of
water on the ground to rush into and dam-
age your home, that will not be covered. In
that case, you will need flood insurance.
FEMA defines a flood as:
• A general and temporary condition
of partial or complete inundation of 2 or
more acres of normally dry land area or of
2 or more properties (at least 1 of which
is the policyholder’s property) from:
we make it easy to
Use Your Time Wisely
Whether you’re catching up on current events, reading in-depth
analysis of local issues, clipping coupons or planning your
weekend, the time you spend reading the newspaper is quality
time that enriches your life with knowledge, news, humor, value,
insights, fresh perspectives and much, much more.
Lunch Time
Morning Time
Break Time
Me Time
º Overflow of inland or tidal waters;
º Unusual and rapid accumulation or run-
off of surface waters from any source; or
º Mudflow; or
º Collapse or subsidence of land along
the shore of a lake or similar body of wa-
ter as a result of erosion or undermining
caused by waves or currents of water ex-
ceeding anticipated cyclical levels that re-
sult in a flood as defined above.
Flood Insurance
Most flood policies are underwrit-
ten and administered by NFIP (Nation-
al Flood Insurance Program) in concert
with FEMA. If you have a policy through
your homeowner’s insurance company, it’s
probably one of these.
Flood policies have specific coverage
limits and specific limitations. The max-
imum coverage amount for a home is
$250,000 and $100,000 for contents. There
are excess coverage amounts available for
some properties. They will not cover any
contents other than mechanicals; water
heaters, a/c units, refrigerators, pumps,
etc. that are below grade which includes
basements and crawl spaces.
The policies do not cover additional
living expenses which pays for a place to
stay if your home is uninhabitable. Your
homeowner’s policy has this provision for
other disasters, but it won’t cover loss by
flood.
The premium for these policies is based
on the FIRM (Flood Insurance Rate Map)
which is redrawn every few years as well
as any changes to the flood zone rating. A
rating of AE means your home is in a Spe-
cial Flood Hazard Area (SFHA) which has
a higher likelihood of flood or preferred
zone which is X.
You can find your community flood
zone map at: msc.fema.gov/portal/home.
For general information about NFIP
go to: floodsmart.gov. There is a 30-day
waiting period for the policy to take effect
except for a lender required policy to ob-
tain a mortgage loan.
Several private insurance flood policies
have entered the market by companies like
Zurich, Assurant, and Lloyds.
The policies operate outside FEMA and
may offer higher dwelling and contents
coverage as well as additional living ex-
pense coverage. The increased benefits do
come with increased premium cost.
Finally, even though it elicits a groan,
read your policy! Policy booklets come
with definitions of what is covered and to
what extent. Talk to your agent if you have
any questions and review all your policies
annually.
Steve Kleiner is an independent insur-
ance broker in Cottage Grove. He can be
reached at steve@insurancefrontiers.com.
In
Honor
of All
Veterans
The Cottage Grove Sentinel is preparing to publish its
“Honoring our Heroes” a special section devoted to all military veterans
who are Cottage Grove-area residents or have a connection to this
area.
If you are interested in sharing your military story in the annual
Veterans Day publication, or in updating information that we have
published previously, please complete the form below and submit
it to the Cottage Grove Sentinel. Service photographs are also
welcome.
Submit forms and photos (preferably) by e-mail to gmanly@
cgsentinel.com; or by mail to Cottage Grove Sentinel, Attn: Gary
Manly, PO Box 35, Cottage Grove, OR 97424; or drop forms off at
the Cottage Grove Sentinel, 1498 E. Main Street, STE 104, Cottage
Grove. Please be sure that all materials are carefully labeled with
your name and phone number.
ALL FORMS AND PHOTOGRAPHS MUST BE
SUBMITTED BY OCTOBER 21, 2021.
Thank you for participating in this project to remember and
honor our veterans.
Name: ___________________________________________________________________________
…And Right Now Is the Perfect Time to Subscribe!
…A
+ Get a Free
National Newspaper
Week Subscription Special Digital Subscription
Use Code NNW21 for 52
52 Week Delivery $35.00/year
or NNW2021 for 13
13-Week Delivery $11.00
Call 541-942-3325 or order online at cgsentinel.com.com before
Friday, October 15, 2021 to take advantage of these special rates!
S entinel
C ottage G rove
In Print, Online, Mobile & Social
541.942.3325 • www.cgsentinel.com
This off er is not transferable and the off er is available those who have not subscribed in the last 31 days. Special introductory off ers are limited to no
more than two special subscriptions in a twelve month period and must be paid in advance to qualify for special rate. Once the above discounted
period ends, you will be billed at the regular subscription rates.
Contact Phone Number: _____________________________________________________________
Branch of Service: _________________________________________________________________
Rank Achieved (optional): ___________________________________________________________
Dates Served: _____________________________________________________________________
Where did you serve? _______________________________________________________________
_________________________________________________________________________________
Special Information (E.G., POW): _____________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
Has your veterans information been published previously in the Cottage Grove Sentinel Veterans Publication? YES
NO
Do we have your military photo(s) on fi le? YES NO
(Note: If you have submitted photos in the past, we will still have them on fi le.)