As hurricane season approaches, it is time to review your homeowners insurance policy and ensure you have the right coverage in place. Waiting until a Tropical Storm or Hurricane Watch or Warning has been issued by the National Weather Service storm is too late to make necessary adjustments. A thorough review of your homeowners insurance policy can help you avoid surprises and financial strain should a hurricane strike. Here is a checklist with the key steps and areas to focus on when reviewing your homeowners insurance policy:
First Things First: Access and Download or Print Your Entire Policy
Before you can review your hurricane insurance coverage, you must have a complete and most recent copy of your homeowners insurance policy. You can obtain a copy of your policy by contacting your home insurance agent or by logging into the carrier’s portal online. Take time to read the entire policy, especially your hurricane endorsement, use a pen or highlighter to make notes, and write down any questions you have. You need to know what counts as a covered loss and applicable policy limits. This means understanding what your homeowners insurance policy covers and what it doesn’t.
Understand Your Coverage Limits
Your homeowners insurance policy outlines the maximum amount your insurer will pay for damages caused by hurricanes and other perils. The first page of your homeowners insurance policy will be a Declaration Page, or “Dec Page.” This page lists your policy number, policy period, name of insured and mailing address along with the location of the insured residence. Use this guide to help explain each part of the declaration page. Understanding your current coverage is the first step in determining if you need to make any changes.
Dwelling - Does Your Home's Structure Have Adequate Coverage?
- Is your policy limit enough to rebuild your home? The cost of rebuilding or repairing a home can be affected by rising construction costs, labor shortages, and material price increases – and remember the real estate value of a house is different from the actual cost to rebuild.
- Is your home’s coverage limit replacement cost value (RCV), which covers costs to replace or rebuild damaged property, or actual cash value (ACV) coverage, which covers excludes the depreciated value of your damaged property?
Personal Property – Have You Recorded Everything You Own and How Much it is Worth?
- Have you conducted a home inventory of your belongings? A detailed list of your belongings and their estimated value, with pictures and receipts can help identify if you need to increase your personal property coverage and will aid in the claims process easier.
- Do you have furs, jewelry, watches, coins, and precious metals requiring additional endorsements? With Ovation’s Premium Package Options you can add specialized coverage and increased coverage limits on your personal property to provide you with additional protection.
Loss of Use – Does Your Policy Provide Enough Additional Living Expenses Coverage?
- Do you have the adequate coverage for you and your family? Additional Living Expenses (ALE) covers the extra costs incurred if you need to live somewhere else because your home is rendered uninhabitable, as the result of a hurricane or other covered loss. Costs covered include temporary housing, food, and other essential fees.
Review Your Hurricane Deductible
Many homeowners insurance policies in hurricane-prone areas include a separate hurricane or windstorm deductible. Unlike a standard deductible, which is usually a fixed dollar amount, a hurricane deductible is often a percentage of your home’s Coverage A limit. This deductible can range from 1% to 5% or more. Knowing this amount in advance can help you financially prepare for potential storm damage.
- What is the percentage of hurricane/windstorm deductible stated in your policy? A hurricane or windstorm deductible is usually expressed as a percentage and is clearly stated on the Declarations (front) page of your homeowners insurance policy. If you have a high hurricane or windstorm deductible, consider putting aside this additional money.
Ensure you Have Adequate Flood Insurance
One of the most critical aspects of hurricane preparedness is understanding that standard homeowners insurance policy does not cover flood damage. Hurricanes often bring heavy rainfall and storm surges that can lead to catastrophic flooding. Without flood insurance, you could be left with significant repair costs.
- Are you currently insured for flooding? Separate flood insurance is available from FEMA’s National Flood Insurance Program (NFIP) and from some private insurance companies. Keep in mind- There is a 30-day waiting period for a flood insurance policy to go into effect so don’t wait until a storm is imminent to apply for this coverage.
Don’t Delay – Review Today!
Hurricane season can be unpredictable, but with careful preparation and a thorough review of your homeowners insurance policy, you can protect your home and finances from unnecessary risks. By understanding your current coverage limits, your hurricane deductible, and if you have flood insurance, you can make informed decisions about making changes to your policy.
At Ovation Home Insurance Exchange, we’re committed to helping our members navigate hurricane preparedness with confidence. If you have questions about your homeowners insurance policy or need assistance adjusting your coverage, reach out to your insurance agent today. Don’t wait until a storm is on the way – review your policy now to ensure you’re fully protected for the upcoming hurricane season. Looking to get a quote with Ovation? We’ve got you covered.