After the floods and windstorms, people called Snohomish County Emergency Management looking for help with storm-damaged homes.
Many who called either didn’t have insurance or “what insurance they did have only accounted for part of the cost,” said Steve Hagberg, a volunteer who took calls.
After the Dec. 14 storm, he talked to one elderly widow who had three trees fall on her Bothell home.
He helped connect her with a logger who removed the trees and even paid her a little money for the timber.
But since she had no insurance, Hagberg could do little else to help repair her home other than provide information on low-interest loans and refer her to charity organizations.
People commonly think that the government will bail them out in a major disaster, said Karl Newman, president of the Northwest Insurance Council.
They shouldn’t.
While the Federal Emergency Management Agency does provide assistance, that money is limited. First, FEMA doesn’t provide assistance unless the president declares an event a disaster, he said.
Second, there’s a cap of $28,200 this year for disaster assistance for home repairs or replacement.
Few victims receive the full amount. In this state, victims of past disasters have received about $6,000 on average, according to the Washington State Emergency Management Division.
Even if folks are eligible to receive assistance, it isn’t meant to cover all losses, just the essentials. Forget about money for jewelry, antiques, stereos, recreational property, second homes and outbuildings.
Much of the federal assistance comes in the form of loans, not grants. If someone’s home is destroyed, the bank still expects the homeowner to pay the mortgage, Newman said.
“That’s the thing the people don’t realize,” Newman said. “We’ve seen trees falling on someone’s home and completely destroying it. The home had to be rebuilt and the homeowner still owed every penny to the mortgage company and they had to find a way to rebuild their home.”
In comparison to auto insurance, homeowners insurance is more affordable, costing on average of $548 a year, Newman said.
While the vast majority of homeowners have insurance because of loan requirements, only about half of renters insure their belongings, he added.
Those with insurance should check the policy to make sure coverage is adequate.
When it comes to storms, here’s what to expect with most homeowner policies:
* Some but not all policies will cover food spoilage if a tree falls on the home and knocks out power.
Nearly all policies have a deductible from $250 to $500, Newman said. Homeowners may want to think twice about filing a small claim, since doing insurance companies evaluate policyholders based on the number and severity of claims.
Instead, he encouraged homeowners to consider increasing their deductibles, which would reduce premiums. Newman said it’s smarter to save insurance for what it was originally intended for: big losses.
Reporter Debra Smith: 425-339-3197 or dsmith@heraldnet.com.
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