As we enter the storm season it is a good time for homeowners to review their insurance policies and have a complete understanding of their coverage before a major storm hits. It is important to make sure you have a full understanding of what coverages you have as well as any gaps that may exist in your current coverage levels.
Here are a few things you should consider when reviewing your insurance coverage:
Floods Are Not Covered
Almost every standard homeowner policy excludes flood damage. If you want to be fully covered you will need a separate flood insurance policy and in some areas your lender may require proof of flood insurance.Check your policy to verify that flood damage is excluded and look for any other exclusions. If your home is in a high-risk flood area it is highly recommended that you carry a separate flood policy.
Check Your Deductible
The deductible amount is often not a set value but a percentage of the homes insured value. This can dramatically increase your costs so it is best to fully understand deductible. In most cases, the details of your deductible will be outlined in your “declarations” page. If you do not understand the deductible details, call your agent for further explanation.
Update Your Inventory
You should always keep an inventory of your insured property and update it on a regular basis. You should document all property but especially your more expensive items. Take photos, video and document serial numbers, date purchased and purchased price. There are a number of apps that can help you with this somewhat tedious process.
Many insurance companies offer discounts for upgrading your home to make it more weather resistant. Adding storm shutters, a sprinkler system or replacing your roof with wind resistant materials can all result in a discount. Contact your insurance agent for details and have your insurance agent perform a discount review to make sure you are receiving all available discounts.