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Homeowners Insurance Checklist for Hurricane Season
With hurricane season underway, experts recommend reviewing your insurance policies too ensure you’re adequately covered.
PUNTA GORDA – OCTOBER 10: In this aerial view, a person walks through flood waters that inundated a neighborhood after Hurricane Milton came ashore on October 10, 2024, in Punta Gorda, Florida.The storm made landfall as a Category 3 hurricane in the Siesta Key area of Florida, causing damage and flooding throughout Central Florida. (Photo by joe Raedle/Getty Images)
Joe Raedle | Getty Images News | Getty Images
The Atlantic hurricane season officially runs from June 1 to November 30, and forecasters are predicting an active season.Now is an opportune time for homeowners to examine their insurance coverage and make any necessary adjustments.
The National Oceanic and Atmospheric Management (NOAA) anticipates a 60% chance of above-normal hurricane activity in the atlantic this year. Their forecast includes 13 to 19 named storms (winds of 39 mph or higher), with 6 to 10 becoming hurricanes, and 3 to 5 reaching major hurricane status (Category 3, 4, or 5).
You should pay close attention to your insurance policies.
Charles Nyce
risk management and insurance professor at Florida State University
Hurricanes can inflict billions of dollars in damages. AccuWeather estimates that the previous hurricane season resulted in $500 billion in property damage and economic losses,ranking it among the most devastating and costly on record.
Ken Graham,NOAA’s national weather service director,advises taking proactive steps to prepare,including reviewing insurance policies.charles Nyce, a risk management and insurance professor at Florida State University, emphasizes the importance of understanding your coverage.
Bob Passmore,the department vice president of personal lines at the American Property Casualty Insurance Association,recommends reviewing your policy annually,especially before hurricane season. Insurers may suspend policy changes during a storm threat,making early action crucial.
Here are three key considerations for your home insurance policy as hurricane season begins:
1. Policy Limits
Your policy limits represent the maximum amount your insurer will pay for a covered loss. Bob Passmore advises ensuring your policy limit adequately covers the cost of rebuilding your home.
Insurance companies typically calculate policy limits based on your home’s size and local construction costs, according to Charles Nyce. For instance,a 2,000-square-foot home with construction costs of $250 per square foot would require a $500,000 policy limit.
Underinsurance can be a significant risk,especially if your coverage hasn’t been updated recently. Rising construction costs or unreflected home renovations can lead to inadequate coverage.
Repair and construction expenses have risen in recent years. The APCIA reports that construction labor costs have increased by 36.3% and building material costs by 42.7% over the past five years.
Many insurers follow the 80% rule,requiring coverage to be at least 80% of
