PUNTA GORDA – October 10: In this aerial scene, a person passes through flood waters, who came to Hurricane Milton in Punta Gorda, Florida on October 10, 2024 after Hurricane Milton. The storm made a landfall as a category 3 storm in the Seasta major area of ​​Florida, causing damage and floods in the entire central Florida. (Joe Rodle/Photo by Getty Image)
Joe Redal | Getty Image News | Getty images
it’s official Hurricane seasonAnd initial forecasts indicate that it is ready to be an active.
Now to ensure that you have enough and right type of coverage, your home owner is a time to take a look at the insurance policy, the experts say – and if you do not do, make any necessary changes.
National ocean and atmospheric administration Prediction During this year’s season, 60% of the “upper-general” Atlantic storm activity extends from 1 June to 30 November.
The agency forecast 13 to 19 nominated storms with winds of 39 miles per hour or more. Six to 10 storms of them can be created, including three to five major storms of category 3, 4 or 5.
You should pay full attention to your insurance policies.
Charles NYCE
Risk Management and Insurance Professor at Florida State University
Storm can cost Billions of dollars Worth loss. Experts of Accuweather guess The last year’s storm season costs $ 500 billion in total property damage and economic losses, which “is one of the most destructive and expensive.”
NOAA National Weather Service Director Kane Graham said, “Now take active steps to make a plan and gather supply to ensure that you are ready before threatening the storm.”
According to a risk management and insurance professor Charles NYCE at Florida State University in one part of your checklist, your insurance policies and you must review what coverage you have.
“Your radio, your battery, besides being physically prepared by having your water … you should pay full attention to your insurance policies,” NYCE said.
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He said that you want to know four major things: The value of the property at risk, how much damage you can be, you are protected in flood conditions and if you have enough money in terms of emergency, they said.
Bob Passmore, the vice -chairman of the department of individual lines at the American Property Casualty Insurance Association, agreed: “It is really important to review your policy at least annually, and it is a good time to do it.”
The insurers often suspend policy changes and release new policies when there is a storm. So acting now helps to ensure that you have an immediate need before having the right coverage.
According to experts, there are three things here to consider their home insurance policy to consider going to the storm.
1. Review your policy limitations
First, take a look at the boundaries of your policy, which represents your insurance company the highest amount that will pay for a cover damage or damage, saying. You want to ensure that the policy limit is correct and will cover the cost of rebuilding your home, Pasmore said.
NYCE said that most insurance companies will calculate the policy limit keeping in mind the size of your home and construction costs in your area. For example, if you have a 2,000 square foot house, and the cost of construction in your area is $ 250 per sq ft, your policy limit will require $ 500,000, he said.
However, you can take the risk of decreasing, especially if you have not reviewed your coverage in a while. The cost of the growing building or renovation of the house which are not reflected in your insurer’s calculation, this may mean that your coverage leaves behind the replacement value of the house.
Experts say that repair and construction costs have increased in recent years. In the last five years, the cost of construction labor has increased by 36.3%, while the cost of construction materials is 42.7%, APCIA found,
Most insurance companies follow the 80% rule, which means your coverage should be at least 80% of its replacement cost. If you are down, you risk paying less than a full claim to your insurer.
2. Check your deductables
Experts say that if you file a claim, take a look at your deductables, or you have to pay from a pocket upfront.
For example, if you have a cut of $ 1,000 on your policy and submit a claim for $ 8,000 storm coverage, your insurer will pay $ 7,000 towards the cost of repair, According For a report by Nerdwallet. You are responsible for the remaining $ 1,000.
A common way to reduce your policy premium is to increase your deductables, Pasmore said.
Increasing your deduction from $ 1,000 to $ 2,500 can save you an average of 12% on your premium, according to Nerdwallet’s research.
But if you do this, make sure that you have cash on hand to absorb cost after a loss, Pasmore said.
Prevent your standard policy cuts. Look at dangerous-specific provisions such as an air cutable, which is likely to kick for storm damage.
NYCE stated that wind deductables are an out-of-packet cost that is usually a percentage of your policy value. As a result, they can be more expensive than your standard cuts, they said.
If a homeowner opted for a 2% deduction at a house of $ 500,000, their out-of-packet cost could go up to $ 10,000 for air loss, he said.
“I would be very cautious about choosing big cuts for the wind,” he said.
3. Assess if you need flood insurance
Floods Usually a house owner is not covered by insurance policy. If you haven’t done yet, consider buying a separate Flood insurance policy Through National flood insurance program By the Federal Emergency Management Agency or through the private market, experts say.
It may be worth whether you live in a flood-prone area: 90% disaster damage in the US due to floods, According To FEMA.
In 2024, Hurricane Helen caused massive floods in hilly areas such as Ashville in Bancombe County, Northern Carolina. Less than 1% of homes were covered by NFIP, According For the recent report of the Swiss Ray Institute.
If you decide to get flood insurance with NFIP, do not buy it at the last minute, NYCE said. Usually one is one 30-day waiting period Before the new policy is implemented.
“You can’t buy it when you feel that you need it 24, 48 or 72 hours in advance, such as the storm makes landfall,” NYCE said. “Buy it now before the storm becomes.”
Make sure you understand what is preserved under the policy. Nfip usually covers $ 250,000 damages Up to $ 100,000 on a residential property and material, Loreta Worth, a spokesman of the Insurance Information Institute, said.
If you expect your home more severe damage, ask an insurance agent about additional flood insurance, NYCE said.
Such flood insurance policies are written by private insurers who covered by NFIP and covers the above damage, they said.
