Is your homeowners insurance adequate for a disaster?

Is your homeowners insurance adequate for a disaster?
Jimmy Hodges helps Chad Heltcel and his wife Cassidi salvage the wreckage of Chad Heltcel's family home, which was destroyed Monday when a tornado moved through Moore, Okla., Tuesday, May 21, 2013.
The tornado damage in Oklahoma made me think about homeowners insurance.

The standard policy pays to repair or rebuild your home if it's damaged or destroyed by fire, hurricane, hail, lightning or other disaster listed in your policy.

Damage from a flood or earthquake is not covered.

While price is always a factor when buying insurance, you need to make sure you have enough to rebuild if the structure is completely destroyed.

Construction costs keep going up, so if your policy doesn't have inflation protection, you may be under-insured and need to boost the limits.

The Insurance Information Institute says most standard policies also cover other structures on the property, such as a detached garage, tool shed or gazebo. Typically, that's about 10% of the amount of insurance you have on the structure of your home.

Homeowners insurance also pays to replace your personal belongings, gives you liability protection if someone gets injured on your property and provides temporary living expenses if for some reason you can't live in your home because of a fire or other disaster covered by the policy.

More Information:

What is Covered by a Standard Homeowners Policy?

Making Sure Your Home is Properly Covered for a Disaster