Buying a home is one of the major life decisions for every individual. Whether a first-time shopper or a seasoned pro, you’d want your home to be safe and protected in an emergency. When you decide on buying a house, the insurance plan is one of the main things you check. Some states have a standard home insurance plan that covers hurricane and storm damages.
However, in other states, you must buy separate hurricane insurance to ensure that your home, belongings, and financial well-being are taken care of in emergency cases. Many people purchase the wrong storm insurance for their homes because they lack knowledge. Therefore, we have curated a complete guide to help you understand hurricane insurance. You can consult a hurricane insurance lawyer for advice if you’re still unsure about the coverage. Also, you will find the factors to consider while purchasing the right insurance for your home.
What is hurricane insurance?
There is no single policy that you can buy as hurricane insurance. Instead, it would help if you insured your home and belongings against the damages. The two primary sources of hurricane damage are wind and water. Homeowners must pay an annual deductible amount in their home insurance to cover the damages caused by hurricanes and storms.
Homeowners need to buy such policies to save their homes from storm damage. Besides, such policies come in handy to run the expensive repair work or rebuilding of the house. Insurance companies pay for people’s damage, repair, and replacement. According to the National Hurricane Center, on average, the coastal states suffer from 12 massive storms yearly. It causes loss of life, property, and finances.
Thus, people who include storm deductibles in their home insurance are in a safer place. They can claim their loss with the help of attorneys and recover the losses. According to an expert hurricane insurance claims lawyer, it is crucial to understand the deductibles in the homeowner’s policies. It will help further ease the process to ensure that all the damage is covered. It will help you claim compensation in an emergency. The insurance companies use legal terms, which can be misleading for homeowners. So, you must consult a lawyer to clarify the information and sign the documents.
Factors to consider before purchasing your storm damage policy
Each year, the storm season begins on June 1 and lasts until November 30. Therefore, it is the homeowner’s responsibility to check their policies in time and renew them as required. If you are a first-time customer or looking to renew your policy, you should consider the following factors.
Ensure adequate coverage of your home’s structure.
Generally, the standard homeowner’s insurance covers a few damages due to environmental disasters such as heavy rainfall, snow, and winds. Some of them cover storm damages, whereas others do not. So, the first thing to add to your policy is the storm and hurricane loss of your property.
Check the policy limit.
Next, the addition of damages and losses may affect the insurance payout after the natural calamity. Therefore, you should check the policy limit and ensure that it is enough to rebuild the home. Many people misunderstand the house’s real estate value as the rebuilding amount. But, both are different, so you should evaluate the Home Insurance Quotes and ensure the policy covers it all.
Understand the deductible amount
Every state prone to storm damage includes separate deductibles stated on the policy’s declaration page. The deductible amount is different from the homeowner’s deductible. Instead, the owners have to pay a deductible amounting to 1-5% of the total insured value of the home. It is an average percentage. The people living in high-risk areas may have to pay a higher percentage deductible for better coverage.
Ensures that all the possessions are duly insured
The storm does not only damage the exterior. But, it may lead to broken furniture, clothing, and other personal possessions. Imagine the cost of rebuying them; it can be financially stressful. So, experts suggest adding all the items to the insurance to protect them against damage. You can determine the value of the inventory and add it to the policy.
Check for coverage for additional living expenses.
When your apartment is under renovation, you will live someplace else. It can be a hotel or hostel. Ensure that your storm policy covers your ALE. In general, such policies limit expenses to 20% of the total insurance value. Besides, they have a set time limit for covering ALE. So, you must ensure you are okay with the time and price limit.
Final thoughts
We hope the above guide assists you find the right storm damage insurance for your home. Always read the policy papers thoroughly to understand the information. If you are doubtful of anything, consider consulting an experienced lawyer before signing the agreement.