Home Insurance Articles
The Effect Of Hurricanes On Home Insurance Policies
2010-09-25
When you apply for a home insurance quote, it's a good idea to check to make sure that you know how the coverage works. A good home insurance policy should provide financial protection from a number of hazards, including things like natural disasters. Hurricane coverage is often sold as a policy add-on in regions that are affected by hurricanes, and it's a worthwhile coverage to have if hurricanes could potentially cause damage in your area. In particular, you should know how to find hurricane coverage on your home insurance policy and how that coverage works.
First, check whether your existing home insurance policy offers hurricane coverage. As mentioned above, it's usually sold as an add-on, so it may not have been an automatic part of your policy. Look to the exclusions section of your policy if you can't find any other section of the contract which references hurricane insurance coverage. If you're not paying for the coverage, you're not receiving it. Find out what your current insurance company charges; then look online for a home insurance quote that includes hurricane insurance coverage in order to gauge the average price for the coverage in your area.
It's very important to know the deductibles listed in the hurricane coverage of your home insurance policy. Home deductibles are usually established as a percentage, and if you have an expensive home, costs can quickly add up if the home is demolished by a hurricane. For example, if a person has a 1.8 percent deductible and a home valued at $200,000, the deductible after a hurricane could be as high as $3,600. Many home insurance hurricane coverage deductibles are set at a higher rate than 1.8 percent, and many homes in the path of hurricanes are worth more than $200,000, so think about your deductible and plan ahead. Make sure you'll be able to pay the deductible to get your home rebuilt in a disaster.
Many home insurance companies will offer extended replacement cost coverage along with their hurricane coverage. If this is available and you live in a region that could be affected by a major hurricane, buy it. Extended replacement coverage will pay for up to about 20 percent more than the value of your home. While this may sound unnecessary, if your home is destroyed by a major hurricane, building materials and construction costs may rise, and extended replacement coverage is a good way to cover your expenses in this circumstance. You'll have a much safer home insurance policy, and if you shop around, you'll find a home insurance quote that fully covers hurricane damage to your home.