Thursday, September 12, 2019
By John Voket
As hurricane season peaks in September and October, it’s important to make sure you are considering adequate coverage for your home. Repeated battering or near misses from hurricanes in recent years means it could be smart to add hurricane insurance protection to your residential portfolio. But where should you begin?The USAA insurance company tells its customers that where you live in a hurricane-prone area can have a major impact on how much you pay for homeowners insurance - and whether you may need a separate policy for wind losses.
Generally, USAA says the closer a home is to water, the more susceptible it is to hurricane damage. The company also offers the following advice that's practical for any homeowner:
Look for safety upgrades. Go beyond the minimum requirements. For example, look for or install simple metal straps or clips in the attic to strengthen a home by connecting its roof to exterior walls.
Reduce impact. Make sure all openings - windows, doors, garage doors - are impact-rated or protected with code-approved storm panels and shutters. Some insurance companies may even offer discounts for these.
Fill in insurance gaps. For a house by the sea, you could be required to carry up to four separate policies for homeowners, flood, excess flood and wind coverage. Check with your insurance company for requirements before you make an offer.
Juan Castillo at nerdwallet.com says understanding what your homeowners policy will and won’t cover is key to finding the right hurricane insurance package.
He says those in high-risk coastal states might need separate windstorm coverage, either through an insurance company or a state-run insurance pool. It might also be available as a rider on a policy you have already.
LendingTree's valuepenguin.com warns consumers to confirm if their policy has a hurricane deductible.
Nineteen states in high-risk areas require a hurricane deductible on top of the existing homeowner's deductible - sometimes thousands of dollars more - before policyholders will be reimbursed for hurricane damage. The site says that, generally, for a hurricane deductible to be triggered, a storm has to be a "named hurricane," along with other conditions. Insureds will need to work with their insurance company after-the-fact to determine whether they need to pay a hurricane deductible.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com