Golden Valley, MN -- From high winds to hail and of course....all that flooding.
It's the summer of storms in Minnesota.
If you think we've been hit with a lot of storm damage recently -- you're right.
In the past five years alone -- Minnesota's been ranked a top three catastrophe claims state -- three different times. That's according to Mark Kulda of the Insurance Federation of Minnesota.
And many times -- your home takes the biggest hit. In our Take KARE of Your Money Report, we find out what may or may not be covered if a storm damages your most expensive investment.
Types of Insurance:
First -- decide "what" type of insurance is right for you.
In Minnesota you can purchase actual cash value -- it's cheaper but you're only paid the depreciated value of your damaged goods.
Or replacement cost coverage which costs more...but you'll get brand new stuff if your home is damage.
Wind and Hail:
Now -- let's talk about different kinds of damage....like wind and hail.
In our state, both are usually covered in most standard homeowners policies.
Tree Damage:
When it comes to trees...it gets tricky.
If a tree falls in your yard or on your house -- your policy covers the damage to your home and to remove the tree off your home.
BUT other costs like stump removal or replacing the tree....well, you're on your own there.
Water in Basement:
If you have a sump pump or if you have drains and water backs up through that your standard homeowners policy doesn't cover that unless you buy a special rider. It's called a backup of sewer and drain endorsement, costs 25/34 dollars a year.
Flooding:
And as we've seen in the flood-ravaged northland....flooding is not generally covered by homeowners insurance.
You usually need to buy a separate flood insurance policy from the federal government which is extremely expensive.
And fewer than one percent of minnesotans actually have it.
One final note....lightning strikes -- and any damage they leave behind are covered.
The Insurance Federation of Minnesota says the most important thing you can do is ask questions about your policy if you are ever in dough about your coverage.
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