NEW YORK (WABC) -- As flames continue to burn across Southern California, many wildfire victims in Los Angeles are experiencing insurance coverage shock.
Insurance coverage shock is when a person finds out they don't have a policy that can help fully rebuild or replace their home.
"Underinsured. It's the biggest issue we're seeing here in New York, New Jersey, other states that we work in, especially in California. Most policyholders are underinsured," said Phil Maltaghati, a public insurance adjuster.
From wildfires to major flooding, weather can often be unpredictable. So, how can you make sure you're protected under insurance in the case of a natural disaster?
As a public insurance adjuster, Maltaghati fights for homeowners who have had properties destroyed by fires or floods. It's his job to make sure his clients get the claims they deserve.
"You're paying for something that you expect is going to pay out. And when something horrible happens to your family, you expect to be paid whole for your damages and be brought back to your pre-lost condition," Maltaghati said.
When a fire ripped through the Santangelos' home in West Milford, it was declared a total loss, yet their insurer paid less than half the insured amount.
"This is the point of insurance -- when the unimaginable happens, we're covered. And we're not covered," said homeowner April Santangelo at the time.
It's a common practice Maltaghati says that dozens of his clients in Los Angeles, where properties are a total loss, will not have enough coverage to rebuild or cover costs.
"If you're going to be proactive, if you're buying an insurance policy, you want to look at your building coverage," Maltaghati said. "Are you properly insured? If you see that your building coverage says $500,000, but you know you just did an addition or you just renovated your kitchen and spent $100,000, you may want to say $500,000 is not going to replace my house."
When it comes to insurance, the first thing homeowners should do is read their policy. Next, homeowners should consider getting extended replacement cost coverage, or if they can afford it, guaranteed replacement cost coverage.
For example, if your insurance covers your $500,000 home and you have extended replacement coverage of 50%, you'll have additional $250,000 for a total of $750,000 worth of coverage. With guaranteed replacement, everything is covered regardless of the amount, but it will be more expensive.
When it comes to flood insurance, your basic homeowner's insurance may not cover floods from natural disasters. In these cases, a homeowner would need to purchase an add-on to their policy through FEMA or private insurance.
According to the Consumer Federation of America, 1 in 13 homeowners across the U.S. are uninsured, making up roughly 6.1 million people. The organization also says that minority homeowners are disproportionately at risk, while those earning below $50,000 a year are twice as likely to be uninsured.
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