Arizona Republic
Editorial Page – Letters to the Editor
August 1, 2011
Insurance lessons from nature

While consuming hundreds of thousands of acres of forest lands and meadows, the Wallow Fire has destroyed more than 50 structures in its path, with more than 5,000 still in danger.

Whether the owners of destroyed or damaged buildings will be able to rebuild and restore them to pre-fire condition could depend on the state of their insurance. Odds are, about half of them could face trouble.

Adjusters for most of the major insurers in the state are preparing for the claims process, with representatives of companies such as State Farm and Farmers paying visits to Lakeside Blue Ridge High School, where many evacuees are staying.

The process is likely to be painful for home and business owners, according to those who suffered damage in previous wildfires.

Properties with mortgages almost certainly are covered, because lenders demand insurance. Properties purchased with cash don't have the same requirement, meaning a home could be insured for far less than its replacement cost, or perhaps not insured at all.

Homes and businesses in Greer, Alpine, Eagar and Springerville have been abandoned for days as people evacuated those communities for safer ground. Damage from smoke or fire retardants could affect numerous properties near the fire's path.

Insurance Tips

Wildfire season in Arizona provides an opportunity to review some homeowner-insurance basics. While the vast majority of dwellings in the state aren’t threatened, here are some worthwhile general tips from the Arizona Insurance Council:

* Check your policy's coverage for rebuilding your home. The more thorough policies cover current costs to rebuild. This can be important since prices for lumber, steel, concrete and copper have risen more sharply than overall inflation lately.

* Check to see if your policy provides for additional living expenses. This would pay for hotel bills, restaurant meals and other costs in case you are evacuated.

* Check to see if you have updated your policy to include major improvements such as a renovated kitchen, new doors or windows or a swimming pool. Certain upgrades might even result in lower insurance premiums, such as those for an upgraded electrical or plumbing system, new anti-theft alarms or fire sprinklers.

Find more council tips at www.azinsurance.org.