What Does Your Home Insurance Actually Cover?
Hurricane season is from June 1st through November 30th. It’s always a good idea to check your homeowners insurance policy to make sure you’re properly protected. Here are some questions we think you should ask yourself and your Insurance Provider:
Is your insurance policy enough to rebuild your home?
Make sure to have enough coverage to completely rebuild your home in the event it is severely damaged or destroyed. Remember, the real estate value of a house is not the same as the cost to rebuild it.
Do you know everything you own and how much it’s worth?
The best way to determine the worth of your belongings is by conducting a home inventory—a detailed list of your belongings and their estimated value. Check what type of insurance you have for your belongings, replacement cost coverage or actual cash value coverage.
Does your policy provide enough Additional Living Expenses coverage(ALE)?
ALE coverage kicks in if your home is rendered uninhabitable as the result of a hurricane or other insured
disaster. ALE covers the extra costs involved in living away from home such as hotels rooms and meals.
Do you know the percentage of the hurricane/windstorm deductible stated in your policy?
Insurers include separate deductibles for hurricanes and/or windstorms in their homeowners policies. Unlike the standard “dollar deductible” on a home policy, a hurricane or windstorm deductible is usually expressed as a percentage.
Do you know what is excluded from your insurance policy?
Standard homeowners insurance policies provide coverage for hurricanes, wind, theft, fire, explosion,
lightning strikes and a host of other disasters. However, all policies also list exclusions—such as flood or earthquake—which are NOT covered by the policy. Get to know the exclusions in your policy or be
prepared to pay the cost of those damages out-of-pocket.
Do you have a flood insurance policy?
People tend to underestimate the risk of flooding, but most natural disasters include some form of flooding—especially hurricanes! If you live in a flood zone, or a hurricane-prone area, a separate flood insurance policy is a must. But it’s equally important to understand what it actually covers.
DON’T WAIT! Having the right level of insurance BEFORE a hurricane hits can be key to your financial
well-being. Make sure you understand how a hurricane can impact your homeowners insurance and that you are properly protected. Contact an insurance provider to discuss your insurance needs.