A Wake-Up Call to Review Replacement Coverage in Your Homeowner’s Policy

Burned oak trees from the fire in Anderson, California.

People often don’t give much thought to their homeowners policy until a disaster strikes. Personally, I’ve been through 3 home disasters in my life. A 40-foot tree fell on the roof of our home in Land Park during a torrent rainstorm in 2008. In 1996, our Victorian in south Minneapolis flooded and hail the size of golf balls tore holes in our siding and roof during another storm. The granddaddy of all was when my house slipped into the ocean in Ventura during a 1981 winter storm.

We didn’t have the protection in our homeowners policy for the house in Ventura that covered water damage from the ocean sucking the walls into its waves because we didn’t apply in enough time to obtain a 30-day time period between the disaster and the date of our policy. Many people do not know the stipulations of their policies, nor whether their policy contains replacement coverage to allow for increased construction costs or appreciation in the event the home needs to be rebuilt.

Hiking through the Happy Valley area under restoration.

My friend in Anderson lost her entire home in a fire several years ago. An arsonist started a fire in the Happy Valley community of Anderson, CA. From where I sit at the moment, burned trees are still standing and there are remnants of lawn art, i.e. burned out cars, mattresses, what-have-you. Members of a church came to help after the fire and they sifted through the debris to find personal items of sentimental value for my friend.

We hiked down the road behind her home to walk the dogs yesterday and get a little exercise ourselves after a lovely excursion into town to first hit the Flea Market followed by lunch. My friend was lucky at the Flea Market to find a two-person log hauler, which looked like a dangerous rusty tool, capable of causing serious damage to, say, one’s inner thigh, but it was a big hit with the Old Timers chewing the hay. One of the guys laughed that my friend had plans for me, but that wasn’t gonna happen.

Abandoned car and remains of a garage in Anderson, CA

The most work I afforded myself was to walk a few miles to the neighboring property, which also overlooks Mt. Shasta to the left all the way to Mt. Lassen to the right. This home, like the others around it, lost its integrity and disintegrated during the fire. It seemed spectacular because the foundation was much larger than my friend’s home, it featured 3 sets of stairs, and there were signs of a foundation for a detached barn, a water fountain and a garage. Those homeowners chose not to rebuild or maybe their policy didn’t give them enough coverage to adequately replace what was once there.

It is just an abandoned lot now. A rusted vehicle or two remain. You might not believe a disaster will ever hit but this is concrete evidence that reviewing your homeowners insurance policy and discussing your home’s replacement coverage with your agent is probably a good idea. I’m heading back to Sacramento this morning, and you can bet this will weigh on my mind during the drive home.