Lessons learned from Tennessee tornadoes: check your insurance policy - WMC Action News 5 - Memphis, Tennessee

Lessons learned from Tennessee tornadoes: check your insurance policy

Bobby Glozier's house is coming along just a month after a twister tore it apart.

We first met them last month when less than third of their home was left standing.

Glozier says the family survived hiding the corner of the basement. "You can't imagine that much destruction in that little time," he said.

Glozier's one of the lucky, his insurance company moved fast. "They paid off everything, no questions asked."

But Glozier learned he barely had enough insurance to rebuild, costs are being cut because family members are helping with the rebuild.

Folks in Middle Tennessee took a beating a few days after Dyersburg and many there learned they were underinsured. Hurricane Katrina is being blamed for a major spike in construction costs.

Insurers are warning people to take another look at their policies.

Bobby Glozier agrees. "I'd check my insurance policy and have the house appraised and make sure insurance company agrees with it," he said.

In-fact, Glozier's insurance company makes sure his policy is up to date, "our insurance company comes out ever so often and takes pictures and they update it, automatically do it."

Which means he's on his way to a new home while others live in RV's and wait to start their new lives.

The National Association of Insurance Commissioners says you need to know the difference between Cash Value and replacement insurance.

**Cash Value insurance means you will get what something was worth when it was stolen or destroyed -- NOT what you paid for it.

**You may only get half of what you originally paid.

**With replacement insurance -- you get enough money to buy a new item to replace the one that was stolen or destroyed.

**Replacement insurance will cost you more.

If you have any questions about your insurance coverage -- call the Consumer Insurance Services at the Tennessee Department of Commerce and Insurance at 1-800-342-4029

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