How to Review Your Insurance Policy Before Hurricane Season Starts
When high winds and heavy rains threaten your home, peace of mind comes from knowing you are financially protected. Many homeowners assume their standard coverage will seamlessly pay for any storm-related damage. Unfortunately, finding out you are underinsured after a storm hits is a costly and stressful mistake.
As the legal professionals at EC Law Counsel, we have seen firsthand how devastating severe weather can be for unprepared property owners. Preparing for a major storm requires more than just boarding up windows and stocking up on supplies. It requires a thorough understanding of your legal and financial protections.
Taking the time to review your insurance policy before hurricane season officially begins on June 1 can save you thousands of dollars in out-of-pocket expenses. By evaluating your coverage limits, deductibles, and exclusions early, you can make necessary adjustments before a storm approaches. Here is our comprehensive guide to ensuring your property is adequately covered.
What should you review in your insurance policy before hurricane season?
Before hurricane season, review your policy limits, hurricane deductibles, flood coverage, additional living expense coverage, and personal property documentation.
Key Steps for Policy Review
1. Verify Coverage Limits
One of the most critical aspects of reviewing your insurance policy is ensuring your coverage limits accurately reflect current realities. Your policy must cover the full cost to rebuild your home from the ground up, which is often significantly different from its current real estate market value. Building costs fluctuate due to inflation and labor shortages, so your rebuild cost might be higher than you expect.
Additionally, check that your personal property coverage is sufficient. Standard policies typically cover personal belongings at 50% to 70% of the structure’s overall coverage limit.
2. Identify Deductibles
Homeowners are often surprised to learn that hurricane or windstorm damage triggers a completely different deductible than a standard claim, like a kitchen fire. Locate your specific hurricane, wind, or hail deductible on your policy documents.
These are generally calculated as a percentage of your home’s total insured value, typically ranging from 1% to 5%, rather than a flat dollar amount. Understanding this percentage helps you accurately anticipate your out-of-pocket costs before your insurance coverage kicks in.
3. Confirm Flood Protection
A common and tragic misconception is that standard homeowners’ insurance covers flood damage. It does not. Standard policies explicitly exclude damage caused by flooding or storm surges.
To protect your property, you must secure a separate flood insurance policy through the National Flood Insurance Program (NFIP) or a private insurance carrier. It is vital to act quickly, as NFIP policies generally require a strict 30-day waiting period before they take effect. You cannot wait until a storm is in the forecast to buy flood insurance.
4. Check Additional Living Expenses (ALE)
If a severe hurricane leaves your home entirely uninhabitable, you will need a place to stay while repairs are underway. Review your policy to confirm it includes robust coverage for Additional Living Expenses (ALE). This crucial provision covers the costs of temporary housing, hotel stays, and even food expenses while you are displaced from your property.
5. Document Your Belongings
After a disaster, trying to remember every item you owned is nearly impossible. Creating a comprehensive home inventory long before hurricane season is a proactive step that dramatically expedites the claims process. Walk through your home and take clear photos and videos of your belongings. Keep digital copies of important receipts, warranties, and appraisals for high-value items, storing them securely in the cloud.
Annual Review Best Practices
A yearly review of your insurance coverage is a non-negotiable part of property ownership. Start by carefully reading your policy’s declarations page, which summarizes your coverages, limits, and deductibles.
Pay close attention to whether you have replacement cost coverage or actual cash value coverage. Replacement cost pays to replace your damaged items with new ones of similar quality. Actual cash value only pays the depreciated value of the items, which often leaves homeowners without enough money to replace what they lost.
If you spot any discrepancies, missing coverages, or terms you do not understand, contact your insurance agent immediately to amend your policy.
Secure Your Florida Property Today
For property owners in Florida, the threat of severe weather is an annual reality. Waiting until a named storm is heading toward the coast is simply too late to adjust your coverage. We strongly urge all Florida homeowners and commercial property owners to prioritize reviewing their insurance policy before the busy season is underway.
If you encounter disputes with your insurance company, face unfair claim denials, or need assistance understanding the complex legal language in your policy, you do not have to navigate it alone. Contact EC Law Counsel for experienced, professional legal help to ensure your rights and assets are fiercely protected.
Eunice Cabrera
Attorney Eunice Cabrera has a unique advantage when it comes to property damage claims. Because she has worked extensively on both ends as an adjuster and as a litigator, Eunice knows how to properly evaluate a claim and obtain a settlement. She understands the strategies that work to get her clients what they rightfully deserve.
