Hurricane season insurance guide

Make sure your home structure has adequate coverage

Standard homeowners insurance covers the structure of your home for disasters such as hurricanes and windstorms, along with a number of other disasters. It is important to understand the elements that may affect your insurance payment after a hurricane, and adjust your policies accordingly.

Check the limit of your homeowner's policy and make sure that the amount is sufficient to rebuild your home: the cost of rebuilding or extensively repairing a home depends on several factors, and remember that the real estate value of a home is not the same as Cost of reconstruction Therefore, it is worth understanding in detail what it will cost to rebuild in case your house is seriously damaged or destroyed, and make sure your insurance covers that amount.
Understand your hurricane / windstorm deductible: insurers in all coastal states, from Maine to Texas, include separate deductibles for hurricanes and / or windstorms in their homeowner policies, indicated on the Declarations (front) page of Your homeowners policy.
The hurricane deductible applies only to hurricanes, while the windstorm deductible applies to any type of wind. If your policy has a hurricane deductible, it will clearly indicate the specific "trigger" that would cause the deductible to take effect.

Unlike the standard "dollar deductible" in a homeowners policy, a hurricane or windstorm deductible is usually expressed as a percentage, usually 1 to 5 percent of the insured value of your home structure.

If you live in an area with a high risk of hurricanes, your hurricane deductible may be a higher percentage. Depending on your insurer and the state where you live, you may have the option to pay more money in premiums in exchange for a lower deductible.

Like any deductible, a hurricane or windstorm deductible will affect the final result of your insurance payment. If you have a high deductible due to hurricane or windstorm, consider reserving the additional money you may need to rebuild your home.

Understand what disasters your insurance policy covers, and which not, standard homeowners insurance policies provide coverage for hurricanes, winds, thefts, fires, explosions, lightning and many other disasters. However, all policies also include exclusions, which are events that are NOT covered by the policy.
A common exclusion is flood. People tend to underestimate this risk, but 90 percent of all natural disasters, especially hurricanes, include some form of flooding. If you live in a flood zone or hurricane prone area, a separate flood insurance policy is essential.

Another common exclusion is sewer backup (which is also not covered by flood insurance). Sewer backup insurance is also good in hurricane prone areas.

Know all the exclusions in your policy and talk to your insurance professional about buying a separate coverage, or be prepared to pay out-of-pocket damages that are excluded in your policy.

If you have a cooperative department or condominium, check with your management company and the bylaws to understand what is covered by the building's main insurance policy and what damages you must cover in your own condominium or cooperative owners insurance policy.

Make sure your possessions are properly insured

Imagine the cost of buying back all your furniture, clothes and other personal possessions. Whether you have homeowners insurance or renters insurance, your policy provides protection against loss or damage caused by a hurricane.

Determine the value of your possessions with a home inventory: create a complete inventory of your belongings and their value will make it easier to see if you are sufficiently insured for the replacement cost or the cash value of the items. It will also help speed up the insurance claims process and help provide proof of losses for fiscal or disaster relief purposes.
Check your policy to make sure you are adequately covered: homeowners policies provide approximately 50 to 70 percent of the amount of insurance you have in your home structure. If you rent, know that your landlord's insurance will only cover the structure of your home; You need a renters policy to protect your belongings against loss or damage.

Make sure your policy provides enough coverage for additional living expenses

Additional living expenses (ALE) covers the extra costs incurred if you need to live elsewhere because your home is rendered uninhabitable as the result of a hurricane (or any other insured disaster). While your home or apartment is being repaired or rebuilt, ALE covers hotel bills, restaurant meals, etc.—expenses over and above what your customary living expenses would be at home. Generally, the ALE policy limit is 20 percent of the amount of insurance coverage on the structure of your home. Standard renters policies also provide for ALE.

• Most insurers offer the option of higher coverage limits – Depending on where you live (which may dictate your expenses), you may want to consider a higher ALE.

• ALE reimbursements may be limited to a specified amount of time – Make sure you’re comfortable with the time limits in your policy.

• If you rent out part of your home, ALE coverage also reimburses you for lost rental income. Make sure your policy reflects the current amount of your rental income.