Insurance agents say most storm damage should be covered. Water damage may be tricky if homeowners and renters don’t have flood coverage.

Date published: 5/9/2008

By DAN TELVOCK

Mark Smith Sr. saw the news early this morning and knew he was going to have a busy day.

The Nationwide Insurance Co. agent was already up at 5 a.m., when he soon got his first call from a client affect ed by the major storm that passed through the Fredericksburg area last night.

A displaced family of six who rented in the England Run North neighborhood was waiting for him at T. Benton Gayle Middle School, where Stafford County authorities created a shelter.

“These people have been evacuated, and they are not allowed back,” Smith said from his cell phone, as he was driving to the school. “I want to get the family situated in a nice hotel here in Stafford. We don’t know how long it is going to be before they are going to be able to get back in there.”

Smith said the family made a smart choice of buying renter’s insurance. Most do not.

“The law in Virginia does not require tenant policies,” he said. “And that just breaks my heart. The people who own the house have insurance to cover the home, but that doesn’t cover the renter.”

Wind damage is covered by insurance, Smith said. Nationwide gives agents a check of up to $1,000 to immediately help a client with what is called “loss of use” coverage. The money is used to pay for housing, utilities and other needs homeowners lose during emergencies.

“We are going to make them whole until they come back to their house,” Smith said.

John Corderman, a Farmers Insurance Group agent, said anyone with insurance who had their home damaged by the storm needs to call their agent immediately. He did not have any clients affected.

“This has been horrible. I understand there have been over 100 homes that have been damaged in England Run,” he said.

Corderman said most of the storm damage to homes should be covered after the deductible is paid. He said typical deductibles can be as small as $500 and as high as $2,500.

Earthquakes are not covered under typical policies here unless the client has what Corderman called a “rider” on the policy.

Getting compensation for water damage from a storm is tricky. If the homeowner does not have flood insurance coverage, they may not receive compensation.

“That is a real iffy thing,” Smith said. “If you are looking for a cheap policy, you wont get [flood cover age].”

Dan Telvock: 540/374-5438 dtelvock@freelancestar.com

INSURANCE TIPS Don’t get caught empty-handed. Purchase renter’s insurance. Most people do not, insurance agents said, and it could turn into a big mistake. Coverage can cost between $8 to $16 a month. Always call your insurance agent as soon as you can to start the claims process. Most policies protect homeowners and renters with what is called “loss of use” coverage, which includes paying for housing and other needs when they cannot return to their homes. Water damage caused by a storm is not always covered by the typical policy. To protect a home from water damage and flooding, purchase a flood policy.

Date published: 5/9/2008