Home Insurance Articles

Home Insurance and Hurricane Season

2010-06-01

Hurricane season is something that happens every year, and every homeowner who lives in a coastal area needs to thoroughly prepare for the possibility that one of these fierce tropical storms will make landfall in her community and put her house and possessions in danger of severe damage.

One of the first steps to take in a "disaster plan" is to sit down and review what is covered and what is excluded in the homeowner's home insurance benefits. Nothing can be more devastating than finding out after the fact that what was assumed was covered is not. There are several major home insurance risks that can be minimized with a little advance work. First, home insurance does not cover flood damage. Not purchasing additional flood coverage is foolhardy for homeowners with coastal property. There is a waiting period from the purchase of the policy before flood coverage takes effect, another reason why advance planning is important. Additionally, in some areas of the country that are exposed to hurricanes, standard homeowner's insurance does not automatically pay for wind damage, which requires a supplemental policy in order to be covered. Making sure this is covered is a crucial step towards lessening a homeowner's home insurance risk. Also, a homeowner needs to know if she needs coverage that will actually rebuild her home at current prices for materials and labor and replace her possessions with new ones (called replacement value), or if she will only be reimbursed for the current value of her property (called actual cash value). It's a very important decision to make in an area where the risk of home destruction is great. The time to make it is before the hurricane hits.

Besides the major categories of home insurance benefits, the homeowner should update her policy to cover any additional property that might have been purchased since she bought the policy. A thorough cataloging of personal effects, including pictures or videos of them, along with receipts will enable the homeowner's agent to extend the home insurance benefits sufficiently. The homeowner should store the policy and the inventory away from the house, and keep a copy of the policy with her if she needs to evacuate.

A common home insurance risk occurs after the hurricane has struck. Often hurricane-damaged areas are targets for home repair scams. If a homeowner is told that her roof is damaged and needs repair, she should get a second opinion, preferably from a reputable contractor recommended by her insurance agent, before paying a deductible on unnecessary work.

With a little attention to detail and some advance planning, a homeowner can have the peace of mind to know she has what it takes to weather the storm.