Insurance Issues to Consider as Hurricane Season Starts Up

It’s that time of year again. We need to start thinking about hurricanes and be prepared to deal with the consequences if one were to hit our area. Safety is critical, but when we follow guidelines, hurricanes are more likely to pose a risk to our financial security than our physical security.

We purchase insurance coverage to protect us from having to cover all the costs if a storm damages our home, business, vehicle, or other property. However, there are steps we need to take to ensure that insurance resources are available when needed.

Of course, as a legal team that has focused on disputes with insurance companies for decades, the attorneys at Ver Ploeg & Marino know that even when you do everything right, sometimes insurance companies still fail to honor their obligations, and that’s when we step in to resolve the matter so our clients can move forward with their lives. When you are prepared, objections raised by the insurance company can be made to appear groundless, and delays give the impression that the insurance company is operating in bad faith.

The critical issues and preparatory steps will vary for each policyholder, but here are some general concerns to keep in mind this hurricane season.

Make Sure You Understand Your Policy

When was the last time you read through your insurance policy? For most people, the answer is “never,” and that’s understandable. Insurance policies are written in complex language where the words have meanings specific to the industry. That makes the terms difficult to understand unless you work with this language on a regular basis.

And that is unfortunate because many people do not realize what their policy covers (or doesn’t cover) and what the insurance company requires them to do until it is too late. It’s a good idea to schedule an appointment with your insurance agent to review the terms, so you know what to expect and whether any adjustments are needed in your coverage.

Know What is Excluded from Coverage

Standard insurance policies, particularly those offering attractive low rates, often exclude many of the types of damage that occur during hurricanes and other seasonal storms. A policy might cover damage from rain but not damage caused by hail. Wind damage may not be covered, or it may only be covered under certain circumstances. Flood damage is almost never covered unless you have a separate flood insurance policy.

Expenses to Consider

If you are insuring your business, consider adding business interruption coverage to protect against the loss of income that may result from a hurricane shutting down your operations. For homeowner’s insurance, you should see whether your policy provides coverage for additional living expenses. This is often referred to as ALE coverage. It provides reimbursement for the additional expenses incurred due to the storm, such as costs for temporary housing.

Review Deductibles

The deductible amounts can vary tremendously, particularly for policies that provide protection for wind and hail damage. Quite often, the deductible is based on a percentage of the property’s value rather than a specific amount. If the deductible is 3% and your home is worth $1,000,000, for instance, then your deductible for wind damage from a hurricane would be $30,000. If you’re willing to pay more for coverage each year, you may be able to obtain a lower deductible.

You should also be aware that your policy may include a roof depreciation clause, which will reduce the amount you receive for roof damage if your roof is over a certain age. It can sometimes be advantageous to replace a roof and add wind mitigation features to take advantage of policy discounts and improve resistance to storms.

Look at Policies for Your Vehicles

Storm damage to vehicles such as your car, boat, or RV is likely to be covered by the insurance policies for those vehicles rather than your homeowner’s policy, even if you store the vehicle at your home. It is essential to review the details of both policies to ensure that any potential damage is covered. Most vehicle policies cover hurricane damage under comprehensive coverage, so check to see if your policy includes this critical coverage.

Document Your Property

The best time to establish a record of what you have and how much it’s worth is right now. Every year, the start of hurricane season provides a good opportunity to take inventory of your property, both personal and business. To make the process easier and keep records organized, consider using an app specifically designed for this purpose. Or build a spreadsheet or checklist. Include details, if possible, such as serial numbers and receipts.

If the process of all that record-keeping makes you cringe in fear, then at least take photos and videos of your property now, while there is no damage to contend with. Preparing records now will make it much easier to prove what you’ve lost if a storm should wreak havoc. Once you’ve created a comprehensive list, you can quickly update it each year, so it becomes a huge chore only once, and then it becomes a matter of simple maintenance.

Keep Key Records in a Safe Place

Your property inventory records, policy information, and valuable documents such as passports and property titles need to be stored in a secure location protected from water and fire damage. Many people opt for a small home safe. It is a good idea to have digital copies of the records, as well as store them in secure cloud storage, which you can access from anywhere in case you are unable to access the originals. If you’re not comfortable with digital storage, you could consider giving photocopies to a relative in a location that is unlikely to be affected by the same storms.

If Insurance Companies Refuse to Honor Their Obligations After a Hurricane, Ver Ploeg & Marino Can Assist

When you need to rebuild your life after a hurricane, the last thing you need is an insurance company that refuses to pay or severely undervalues your claim. Our team can help.

At Ver Ploeg & Marino, we possess a deep understanding of the insurance industry, one that few firms can match, and we know how to employ the most effective strategies to enable homeowners and businesses to succeed when the insurance company says “no.” If you’re involved in a dispute with your insurance company, please contact us now to schedule a consultation and learn more about the assistance we can provide in your situation.

Share