Understanding Hurricane Insurance
Summer is the heart of hurricane season. For those who live in areas commonly affected by hurricanes - coastal, southern states, for the most part - can find this an anxiety-ridden time. Damage to property and personal danger can fill these months with an enduring sense of dread. And, although, there's nothing to be done to eliminate these fears, there are things you can do to minimize them.
One of the most important steps you can take to get through hurricane season as peacefully as possible is to learn about how your insurance handles hurricanes. As a way of minimizing the danger of serious property loss, exploring your coverage options is an important strategy.
As a way of lowering premiums, many insurance providers in frequently affected states instituted deductibles for hurricanes, according to the Insurance Information Institute.
"With the increase in coastal development, as well as the risk of more severe and costly hurricanes, consumers are now sharing more of the potential catastrophe risk with insurance companies," explained the group's vice president, Jeanne M. Salvatore.
As opposed to typical deductibles - such as fire and theft, which are typically a set dollar amount - hurricane deductibles are often set as a percentage of the home's value. It is important to know how your insurer handles this complicated process to ensure that you are aware of how you will be covered in the wake of a hurricane.
It is also critical to understand the different types of policies and how yours fits in. For example, many insurers cover damage done by the wind of a hurricane, but not harm caused by a flood. Make sure you and your coverage provider are on the same page. If you live in an area prone to the storms, adding flood coverage to your policy may be a wise decision.