It's time for Staying Safe, Staying Covered which refers to protecting your property, whether you are a homeowner or a renter. Do you have the insurance coverage needed to prepare for the potential impact of severe weather conditions? Make sure that you have the right insurance in place now so that this can help you recover when severe weather hits.
Severe weather is especially common during rapid temperature swings in the spring warmup. These changing conditions can create dangerous weather patterns that significantly increase the potential for damaging severe weather, such as high winds, hail, or tornadoes.
Review your insurance coverage. Verify that you have appropriate coverage with your insurance company and discuss any coverage needs. Make sure you are financially comfortable with the amount of your deductible and know how it applies to an insurance claim. Though many types of storm damage are covered by homeowners and renters insurance, flood damage is typically not covered unless you have purchased flood insurance. Water and sewer back-up is also not automatically covered under a homeowners or renters policy.
Reminder that all important documents listed below should be stored in a safe place, such as a safe deposit box, with a relative, or digitally online. Be sure to let a family member or another trusted adult know where these documents are located.
- Take inventory. Create a detailed list of personal possessions with photographs of each room on the property, and a thorough list of other valuables not seen in the photographs.
- Secure important documents. Store copies of all insurance policy declaration pages and insurance cards in a secure place.
- Protect your finances. Make sure to have a financial plan for paying an insurance policy’s deductible to help avoid severe financial strain in the aftermath of a disaster. A deductible is a certain amount of money that must be paid out-of-pocket before the insurance company will pay a claim after a loss.
- Gather emergency contacts. Make a list of important phone numbers including family members, and insurance companies.
If your property is damaged, you should:
- Report the claim. Contact your insurance company's claims hotline and/or agent and have your policy number(s) ready as well as other relevant information easily available. To make the claims process even easier, use this Insurance Claims Tracking Sheet which has been prepared by the State of Michigan's Department of Insurance and Financial Services.
- Prevent further loss. Take steps to protect the property to avoid further loss but do not make permanent repairs until the insurance company has inspected the damage. Be sure to keep receipts for any purchases of supplies that are needed to protect the property.
- Document the loss. Take pictures or videos of the damaged items and do not get rid of the items until instructed to do so by the insurance company.
- Protect yourself from fraud. After a storm, fraudsters claiming to be adjusters, contractors, and other service providers often go door-to-door claiming to offer services, like debris cleanup or building repairs. In these scams, the work may not be completed, may be completed with poor-quality materials or shoddy workmanship, or you may be significantly overcharged for the work. Always contact your insurer before hiring a contractor, verify the credentials and licensure of these individuals, be present in the home when damage is inspected or repaired, and never sign a contract for work without understanding it first. Also keep in mind that insurance adjusters work for and are paid by insurance companies, and you should not be asked to pay them for their services. To report a scam or price gouging, contact Michigan's Attorney General at 877-765-8388 or online for further information.
The state of Michigan doesn't require renters insurance by law. However, your landlord might make it a condition of your lease specifically because it’s important to them that you have liability insurance. Even if it’s not required, it’s highly recommended.
- Your landlord's insurance is for the building, not your stuff. Any damage to your personal property due to fire, theft, etc. is your financial responsibility unless you have a renters insurance policy.
- Your “landlord’s responsibility” is limited. Yes, a landlord is responsible for fixing structural damage like a broken pipe. But, if that broken pipe destroys your belongings, and you don’t have renters insurance coverage it’s solely on you to replace your stuff.
- When determining the amount of renters insurance you may need, think about the value of your belongings. This number can add up quickly. Determine your amount of coverage by creating an inventory of the things you own or store in your residence. This will help you assess the value and determine how much coverage you need. Make sure to read into your policy to determine whether your coverage is actual cash value, which takes depreciation into account, or replacement cost coverage, which replaces your items at their retail price of today.
The state of Michigan encourages consumers to first attempt to resolve any claim disputes directly with their insurance company. If a resolution cannot be reached, contact the Department of Insurance and Financial Services at 877-999-6442, Monday through Friday from 8 a.m. to 5 p.m., or submit a complaint online at Michigan.gov/DIFScomplaints.