Protect your home (and finances) from disaster

This article was originally published in the August 2011 issue of Money Magazine.

By Katherine Reynolds Lewis

(MONEY Magazine) -- The season for natural disasters, it seems, is now year-round. Floods and a record number of tornadoes have already caused billions of dollars of property damage across the nation in 2011. Come fall, forecasters expect an unusually active hurricane season. Moreover, experts believe crazy weather is here to stay.

"Climate change is intensifying the extremes of rain and snow as well as drought," says Robert Henson of the University Corporation for Atmospheric Research.

Think homeowners insurance will cover your tab if your property is walloped by Mother Nature? Think again.

A 2008 study found almost two-thirds of homes were under-insured for disasters. Worse, about a third of homeowners have recently lowered their home or auto coverage to save money, according to a 2011 survey by the Insurance Information Institute. Finally, even if your insurance is adequate it may not have the right coverage for the risks you face. Below, key steps to limit the damage.

Shore up your property

For earthquakes. The roof is a key vulnerability. You'll spend 2% to 3% of your home's value to firmly strap down the roof to the walls and foundation, says Timothy Reinhold, senior vice president of research for the Institute for Business and Home Safety.

For tornadoes. Again, your roof is at greatest risk of being damaged by high winds, says Robert Schneller, a risk-management expert at the University of Houston. Spend $50 to $100 per hour to have a roofer secure loose shingles or flashing that a gust of wind could pull loose. Also install roof clips to better attach your roof to the walls ($1 per clip, plus labor).

The garage door is another weak spot. An impact-rated pressurized door will run you $1,300, but you can also retrofit your existing door with pressurized equipment, which will cost just $450 and provide reasonable protection, says Reinhold.
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