Early this summer, a tornado ripped near the Chapman area, completely destroying a former clients farmstead. Luckily, all humans were not hurt. When it came time to begin rebuilding, they found out that they were way underinsured to the tune of 10s of thousands of dollars. Since we have added on quite a bit on our house, Joy and I decided that we needed to talk with our insurance agent to make sure we were insured enough to rebuild, should a loss happen.
July 13,2016 at approximately 0700 we awoke to the sound of a big thunderstorm. When we looked out one of the front windows, we could see part of our barn laying in the front yard. Once the storm subsided, we went outside to see that our beloved barn had been destroyed.
Our Insurance company acted very quickly to get someone out to assess the damage and to get the claim started. Part of the claim process is to get an estimate to rebuild. A local farmer recommended a good builder. We had him come over and give us an estimate. The estimate was about $53,000 to rebuild our barn, not taking into account the task of excavating the site, which a ball park estimate from a local excavator put at $5-10000.
Our insurance adjuster was great. He made sure we knew everything that was needed from us to make the claim proceed. Our agent was great assisting us in completing various forms. However, despite our insurance company helping greatly, our claim check to replace our barn was for $15600, much less than it was going to cost to rebuild.
We ended up building the new barn ourselves which was a big undertaking. I plan to publish the building of the new barn in future blogs. Our mortgage company was a pain in the butt to work with. The claim check is made payable to the homeowner and the mortgage company. They would only release half of the money until the project was 90% complete and inspected. This put a financial burden on us which I personally think is crap. I mean why do we have insurance? Just another thing to think about.
Well, since this happened, we did ask our insurance agent to calculate if we had enough insurance to rebuild our house. Turns out we were about as short as our former clients were. We now have enough coverage to rebuild our house and upped our barn coverage too. I’m getting too old to be building barns.
Make sure your homeowner insurance is adequate to completely rebuild. If you have recently purchased a home, chances are, your coverage is adequate. However, any major add ons or improvements could change this. If in doubt, make an appointment with your insurance agent. I sure wish we had done it sooner. Scott