Florida hurricane season is roughly May through November. That is over half the year! On top of that, hurricanes don't always occur during their season. For homeowners in Florida and in other coastal communities, hurricanes are a huge threat.
Does your insurance policy adequately cover hurricane damage? You'll have to consider several items to reach this conclusion.
In Florida, all insurance companies are required to offer hurricane insurance for deductibles of $500, 2%, 5%, and 10%. Cutting through the insurance technical talk; Say you get a policy that covers $200,000 worth of damage and your house. Your policy has a 2% deductible. If your house is completely destroyed, your insurance company will write you a check for up to the amount of your coverage (in this case $200,000) minus your deductible (in this case $4,000). If this were to happen, you would receive the difference between your coverage and your deductible ($196,000). If you were to experience damages to your home above your deductible, the insurance company would likely offer to pay the estimated or exact repair costs less your deductible.
As we can see, a 2% deductible is great! But what about 10%? If you had a 10% deductible in the above situation, that would be $20,000! If the damage to your home were $19,995, you would be responsible for those repairs. If the damage to your home does not exceed your deductible, you would be responsible to pay the repair costs out of pocket.
Sometimes we don’t realize how high our deductibles are and we’re not able to meet it to repair our homes. If you’re not sure what your deductible is, now is a great opportunity to check. If you’re not happy with what you find, it may be time to shop around for a new policy. In some cases, improving your policy could be a matter of speaking with your insurance agent. Some policies can reduce the deductible for a minimal increase in your monthly payments.
Another thing to be aware of is that your insurance company will only make a payout once during a hurricane season. Hurricane insurance will only be paid out for damages caused by a hurricane declared by the National Weather Service. Deductibles are applied to damages occurring from the beginning of a hurricane watch up to 72 hours aver a watch/warning has ended.
Please be aware that not all insurance policies offered include hurricane or wind damage coverage as there are several different types of insurance policies. Ask your insurance agent specifically about your hurricane and wind coverage. Some policies require a separate policy for hurricane and wind-related damages. Also, make sure you that you have the right type of policy for your situation. For example, homeowners who occupy their home as their primary residence need different policy coverage than those who rent their properties. If you do not have the correct type of coverage, the insurance company may be able to deny a valid claim.
Are you a homeowner looking to ensure you have the proper coverage or a new homeowner looking for first time coverage? It is best to reach out to an insurance professional to review your policy and inquire about what insurance carrier, policy, premiums, and deductibles are right for you.
Check out these other articles about day to day insurance issues:
· Aluminum Wiring and What it Means
If you need recommendations for local insurance agents, please reach out to us for referrals!
]]>
