Hurricane season starts again June 1. Are you ready? Is your homeowners insurance? In addition to basic preparations such as creating a disaster kit and reviewing evacuation plans, you should also review your homeowners insurance coverage so you won’t have any surprises if a hurricane damages or destroys your home. Here are a few things to familiarize yourself with before hurricane season begins.
Hurricane deductibles
Hurricanes have their own separate deductibles, different from the deductible you’d pay out of pocket for another named peril. Instead of a flat dollar amount, such as $500 or $1,000, a hurricane deductible is a percentage of your Dwelling A coverage (the part of your homeowners policy that covers you if your home has to be rebuilt or repaired). Most of the policies we see have a 2% deductible, but it can rise as high as 5 or 10% in Florida. That means that if you have a 2% deductible and your home is insured for $350,000, your hurricane deductible will be $7,000. (We do have a few companies that offer a flat hurricane deductible of $1,000-$2,000, which may be a better choice for some clients.)
Once the storm passes, and the hurricane warning or watch has been lifted, you’ll still be on the hook for your hurricane deductible for 72 hours. That means if a tree falls on your roof a day after the storm passes through, your hurricane deductible will still apply.
What if you have damage from more than one hurricane in the same year? According to the Florida Department of Financial Services, “In Florida, you only have to pay one hurricane deductible within the calendar year, provided you are insured with the same insurance company or group of companies for the second or subsequent hurricanes during the same calendar year.”
Other questions to ask
- If your home is destroyed, do you have enough coverage to rebuild?
- Do you have flood insurance? Flood damage is costly, and even if the flood is caused by a hurricane, it won’t be covered by your homeowners policy. To have flood coverage, you need a flood policy. A “flood” can be anything from storm surge, to pooling water after prolonged rainfall, to rising water from a river, creek, or lake.
- What about sewer backup? Damage from sewer backup is not covered by either homeowners insurance or a flood policy. You’ll need separate sewer backup coverage.
Before hurricane season begins, review your homeowners insurance declarations page, decide if you need any additional coverage, and make sure you’ll have access to funds to cover your hurricane deductible. Please call your L & M Insurance Group agent at 813-672-4100 for a no-obligation homeowners insurance quote, or if you have any questions about your insurance coverage. You may also click here to contact us online.
