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Hurricane Checklist 2015 on the Boynton & Boynton Personal Insurance Blog
The Atlantic Hurricane season falls between June 1st and November 30th. Some years can be worse than others, but every season brings the possibility of significant weather events between the Caribbean and eastern Canada. Fortunately, most weather experts are predicting a very quiet year for hurricanes.

Although we have not entered hurricane season yet, it’s never too early for homeowners and business owners in high risk areas to prepare. Owners should annually review their insurance policies thoroughly to ensure adequate coverage. The Insurance Information Institute (I.I.I.) has put together a checklist for property owners in hurricane risk areas.

1. Is your policy limit enough to rebuild your home in the event of a loss?

The following homeowner’s coverage add-ons help protect customers from the costs of rebuilding a total loss:

  • Extended Replacement Cost Policy – pays an additional 20% or more above the policy limits.
  • Guaranteed Replacement Cost Policy – pays the full amount to rebuild your home whatever the ultimate cost.
  • Inflation Guard – Automatically adjusts the coverage limits to reflect changes in construction costs.
  • Ordinance or Law Coverage – pays a specified amount for rebuilding to new building codes, should your community adopt stricter codes.

2. Do you know the value of everything you own?

The I.I.I. writes: “ Most insurers provide coverage for personal possessions, approximately 50-70 percent of the amount of insurance you have on the structure of your home. But is this enough? The best way to determine what you actually need is to conduct a home inventory- a detailed list of your belongings and their estimated value.”

It is also recommended that you review what type of insurance you have for your belongings, whether it is replacement cost coverage or actual cash value coverage.

3. Does your policy provide enough Additional Living Expenses coverage?

Additional Living Expenses coverage will cover basic living expenses in the event that an insured’s home is left uninhabitable by a disaster. This includes hotel costs, food costs, and other reparations.

According to the I.I.I.:

  • “ALE coverage is generally equal to 20 percent of the amount of insurance coverage that you have on the structure of your house; however, most insurers offer the option of higher coverage limits.
  • Many policies provide ALE reimbursements only for a specific amount of time; make sure you are satisfied with the time limits in your policy.”

4. What is the percentage of the hurricane/windstorm deductible stated in your policy?

Insurers in every coastal state include independent deductibles for hurricanes and/or windstorms in their homeowner’s policies. Unlike the standard ‘dollar deductible’ on an auto or home policy, a hurricane or windstorm deductible is typically shown as a percentage. This percentage will be clearly shown on the Declarations page of your homeowner’s policy.

Deductibles range from 1% to 5% of a home’s insured value, and only apply in the event of a specific type of natural disaster.

5. What disasters does your insurance cover?

Standard homeowner’s insurance policies provide coverage for hurricanes, wind, theft, fire, explosion, lightning strikes, and a host of other disasters. However, be aware of exclusions such as flood or earthquake, which are not covered.

If you are in a hurricane- prone area, the I.I.I. suggests the following additional coverage: Sewer Back Up Coverage and Flood Insurance.

6. Speaking of flood insurance, do you have it?

90% of all natural disasters include flooding. Therefore, a separate flood insurance policy is important for anyone who lives in hurricane prone areas or on a flood plain.

If you have any questions about insurance coverage, our personal lines department is ready to help you.

Flooded Homes - Get Flood Insurance From Boynton & Boynton
Sources: propertycasualty360.com “Here is your 6-step hurricane season checklist for 2015“, iii.org “Be Financially Prepared for Hurricane Season with the I.I.I.’s New Insurance Checklist

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