In Florida, hurricane insurance is a required component of any homeowners policy. You will not be able to secure a mortgage without it. Therefore most residents of Florida have hurricane insurance unless they own their home outright and have chosen not to carry the coverage.
However, you may wish to frequently review your home insurance policy, as variables may change which can affect your coverage.
For instance, the portion of your premium which is allotted to hurricane damage is calculated based upon the age of the home, the perceived risk to the home, and the estimated cost to replace the structure if necessary. If you add a new roof, purchase storm-rated windows or add hurricane shutters, your policy is likely to change.
It is important to note, however, that an insurance company will not allow you to purchase new coverage or modify your coverage once the storm is on the radar – so the time to make sure that you are prepared is prior to the storm.
Hurricane Insurance is Not Flood Insurance
If a storm damages your roof and the home floods because of it, you are covered.
However, if rising water invades your home from the street, even if it is a result of the hurricane, your claim will likely be denied. If there is any danger whatsoever that a nearby body of water may flood your property, you should obtain separate flood insurance.
If you live in a designated flood zone, you most likely have flood insurance in place. However, in the Sarasota and Manatee area, those who live outside flood zones may still wish to put flood insurance in place to protect themselves during extreme weather situations.
Review Your Deductible and Home Value
Most deductibles for hurricane claims are a percentage of the home’s value. Therefore, if you have a 1% deductible on a $400,000 home, your out-of-pocket contribution will be $4,000. But if you have a 5% deductible, you are looking at a personal contribution of $20,000.
Although lower deductibles incur higher rates, this must be weighed against your ability to pay your share should the worst occur.
If your home’s value has increased, the cost of replacement has risen sharply, or your financial situation has changed, you will want to make sure that your deductible reflects your current income and capabilities.
Inventory Your Possessions & Add to Homeowners Insurance
It is a good idea to take an annual assessment of your insured possessions of value. Take photos, record serial numbers, and keep important documentation off-site. If you have possessions of significant value or have obtained new valuable possessions since your policy was instituted, check your terms.
You may need an additional rider or revision to be adequately covered.
Inform Us of Home Upgrades or Value Changes
As indicated above, upgrading your home to be more storm-resistant may positively affect your premium. In addition, any number of variables may have affected your home’s value, either positively or negatively. Review all relevant changes with your insurance advisor to make sure that your homeowners’ insurance coverage, and thus your claims, will adequately reflect the current value of your property.
Homes in Sarasota and Manatee County have benefited greatly from building code changes, making us all safer and more secure.
However, a major storm is always a possibility in this region, and it only takes one event to wreak havoc on your property and financial health.
Taking the time to review your home insurance policy each year with Anderson & Associates will give you the added peace of mind you need to face and ride out the storm with confidence.
