Before Severe Weather: Be familiar with homeowners insurance coverages, exclusions, deductibles and loss settlement terms.

1. Do you own your home? Verify adequate dwelling coverage is in place before a loss occurs. Structural damage is typically paid on a replacement cost basis. In turn, insurance policy terms require a dwelling limit in line with the home's replacement cost. Dwelling replacement cost is the amount it takes to rebuild the home using like-kind materials without subtracting for depreciation or wear and tear. Verify the replacement cost of your home and adjust the dwelling coverage limit accordingly. Insuring your home for less than its replacement cost could result in a claim settlement far less than the amount it takes to repair or rebuild.
2. Next, review personal property coverage needs. This applies to renters and condominium owners too Most people own more belongings than they realize Create a room-by-room personal property inventory. List each item including purchase price, model and serial number and receipt whenever possible. Photos and appraisals on high value items are helpful. Compare the inventory to the policy's contents coverage limit, restrictions and exclusions. Talk to your insurance agent about increasing contents coverage, buying extra coverage for unique or high value items and broadening coverage for your unique needs. Insurers offer a variety of optional endorsements. Keep in mind most homeowners policies cover personal property on an actual cash value basis. For an additional cost you can add contents replacement cost coverage to remove depreciation as a loss settlement factor.
3. Be aware that homeowners insurance policies do not cover damage caused by flooding. The only way to get this protection is by purchasing a separate, stand-alone flood insurance policy. Ge in touch with your local property insurance agent for cost and coverage details.

After Severe Weather: Check for damage. Be safe and call for help if necessary.

1. Closely inspect your home for storm-related property damage. Write down what you see and take pictures if possible.
2. Report a loss to your insurance agent right away.
3. Take reasonable steps to prevent additional damage.
4. The insurance company will assign a reference number and adjuster to your claim. Start your own file to store all claim-related paperwork. The adjuster will conduct a detailed claim investigation that includes verifying coverage, assessing damage and making a settlement offer. Do not throw anything away without the adjuster's consent as there may be a visual inspection.

Avoid Contractor Fraud: 'Storm chasers' are unscrupulous outfits that target hard hit areas and pressure victims to sign repair contracts. Be alert.

1. Never sign a repair agreement without first talking to your insurance agent or adjuster. It is best to work with a familiar contractor or one recommended by the insurer.
2. Illinois' Consumer Protection Against Storm Chasers Act applies to storm-related repairs linked to insurance settlements following a natural disaster. Contractors are prohibited from rebating or waiving the policy deductible and cannot represent or negotiate on behalf of the homeowner in the claim process. In addition, contractors must let committed homeowners know the repair contract can be canceled and provide the appropriate cancellation form. The Storm Chasers Act allows homeowners to cancel the repair contract within five business days of receiving a denial letter from the insurance company. Roofing contractors must include their name and license number on bids, contracts, building permits, commercial vehicles and advertisements. Do not pay in cash or until the job is complete.