The one thing you don’t want to have happen is to experience hurricane or tropical storm damage to your home only to find out that your insurance policy won’t cover the damages. That’s why Aftermath Adjusters & Consulting, LLC recommends that homeowners be proactive when it comes to their insurance. It is much better to review your policy and understand what it covers before you have a problem.
To that end, here are three things to do before the next hurricane season arrives in June.
#1: Make Sure Your Home is Adequately Insured
Studies show that as many as two out of three US homeowners do not have enough insurance on their home. That’s because most homeowners get insurance that cover their mortgage rather than the actual value of their home. The average mortgage is just 80% of a home’s value, which leaves the homeowner underinsured by twenty percent.
Other reasons for being underinsured include:
- Increase in home values in the area
- Increase in the price of materials for repair
- Major renovations to the home that increased its value
To be sure that you have enough insurance, your home should be insured so that if you needed to rebuild from scratch, you could do so. Be sure to include special features your home has such as granite countertops or specialized roofing materials.
Because of inflation and constant changes in housing costs, homeowners should check their coverage yearly.
Additionally, you’ll want to be sure that you are covered for all your personal items including items that are more valuable and may need a rider, such a jewelry, art, antiques, and collections.
#2: Make Sure You Have Flood Insurance
Many homeowners mistakenly believe that flood insurance is part of a homeowner’s insurance policy. However, this is not true. Flood insurance is a separate policy with a separate deductible and its own premium.
Most Florida homeowners get their flood insurance through the National Flood Insurance Program. However, it is also possible to get flood insurance through a private insurer.
A Word of Warning: There is a 30-day waiting period between the purchase of a flood policy and the date coverage begins. Therefore, don’t wait for a named storm to appear to purchase flood insurance.
#3: Understand Your Deductibles
Most homeowners believe that they have a standard deductible. Because of this, they believe that they will have one maximum out-of-pocket cost. Unfortunately, this is not true.
- If your damage involves more than one policy, then you will have more than one deductible
- Named storms will have a different deductible that is a percentage of your coverage. Hurricane deductibles are typically 2, 5 or 10 percent of the amount of insurance covering the property.
The best thing to do is talk with someone about your policies, what they cover, and the deductibles you have – before a storm hits. At Aftermath Adjusters & Consulting, LLC, we can help you determine if you have enough insurance and whether you have gaps in coverage for common Florida damages.
Don’t wait until a storm hits to find out that your insurance isn’t up to par. Call us and let us help you prepare today.