Did you know that the National Oceanic and Atmospheric Administration (NOAA) has predicted a 60% chance of hurricane overactivity?
2021 is the seventh year in a row with above-average hurricanes. So, now is the time to double-check your home insurance and whether you need separate storm insurance.
In the midst of the hurricane itself, you’ll be spending the bulk of your brainpower staying safe. It would be too late to even think about changing up your home’s insurance. If you’re not sure whether your home insurance covers storm damage, don’t worry. You’ve come to the right place.
Keep on reading for our full breakdown of all things related to storm insurance and understanding what the traditional home insurance covers (or doesn’t cover).
Storm Insurance 101: Understanding Standard Home Insurance Policies
Generally speaking, your average home policy won’t include flood coverage even though flooding tends to be the most dangerous element of hurricane season, causing the most severe and long-lasting damages.
Moreover, your standard home insurance will not include coverage for your artwork, valuable jewelry, or other collectibles.
In short, you’ll be needing actual storm insurance, like the one provided by Insurance 605. Sure, you’ll be paying a little more when it comes to the upfront costs. But, this policy will be enough to cover any valuables you might lose, as well as the damage from the flooding.
Mitigating Storm Damage: Analyze Your Home Insurance
Your very first step towards avoiding nightmare-ish scenarios in the aftermath of a hurricane is to take a close look at your current home insurance.
Your plan might include coverage for wind damage. Yet, the coverage itself might not be enough actually to repair your home. After all, most policies will only cover from 50% to 70% of your home’s structural value.
After going through the fine print of your home insurance policy, you’ll want to create an inventory of everything you have inside your own home. This should include any important possessions and documents.
Now, you’re ready to shop around for the right storm insurance policy.
Don’t Forget the Additional Living Expenses.
Once you’re in the market for storm insurance, you’ll want to pick one with solid additional living expenses (ALE) clauses. Basically, this is the part of your policy responsible for covering any costs of living once your home becomes inhabitable after a storm.
Remember, part of the key horrors of a hurricane is facing the hike in food, gas, and hotel prices. Thankfully, you can pick a policy that would cover a big chunk of those expenses.
Home Insurance Done Right
No one wakes up in the morning knowing that their home will be inhabitable in a couple of days because of a storm or a hurricane.
However, that doesn’t mean that you should neglect to get storm insurance before you actively need it to survive financially. Remember to keep updated copies of your policy and your agent’s contact information, and you’ll be good to go.
And, if you liked our short explainer, make sure to check out additional tips and tricks, all available to you in our home section.