Top Five Questions about Hurricane Insurance
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It’s Hurricane Season.
That’s no one’s favorite sentence. We understand how stressful and confusing hurricane season can be.
You have questions.
Here are the answers.
Can You Buy Insurance When The Storm is on The Way?
Depends.
Yes, we know it isn’t the definitive answer you would like, but there are a number of factors that decide when the underwriters at an insurance carrier decide to close binding. In fact, different carriers use different metrics in order to make their decision. It used to be an imaginary box in the Caribbean, in which once a storm passes a certain longitude and latitude, they close any underwriting.
However, with the advent of more precise technology, now different companies have different methods of tracking the storm’s progress. Below are a few of the methods currently being used.
*The old imaginary box is still in use.
*Whenever a storm watch or warning is issued in an area. (https://mobileair.com/differences-between-a-storm-watch-vs-storm-warning-a-quick-and-definitive-guide/#:~:text=As%20a%20matter%20of%20fact,lead%20to%20injury%20or%20death.)
*Cone of concern (https://www.news-journalonline.com/story/weather/hurricanes/2024/07/23/national-hurricane-center-new-cone-concern-saffir-simpson-scale/74501068007/)
While there are multiple ways they can stop binding coverage, there is one sure way for you to get the coverage you need.
Don’t wait.
If it’s hurricane season, and you have an endorsement or new policy pending, do everything in your power to get it done asap. If you find yourself in the middle of getting coverage and a named storm comes your way, it will delay everything.
Should I Record my Property Before a Storm?
You have a camera in your pocket.
We want you to use it.
Documentation is key to almost everything in insurance. Having pictures & video of your property right before a storm hit is crucial. If you have any damage, it’ll help in possibly expedite the claims process. Anything that can speed up the process is worthwhile; cause adjustors will be swarming in requests after a storm.
Is it Worth Strengthening Your Property Against Storms?
The answer is yes.
When it comes to hurricanes, you should be preparing in every possible way, not only getting insurance coverage, but updating your property so that it takes minimal damage. It may seem like a heavy investment upfront, but it’s something that is very worthwhile. Below is a FEMA link that highlights a few changes you can make to fortify your home and make your property more enticing for insurance companies.
How Does a Windstorm Deductible Work?
Having more than one deductible can be confusing. That’s why we aren’t all surprised that this question is so common.
The first thing to know is that a windstorm deductible is not a set amount like other deductibles, but a percentage. What is it a percentage of? Some mistakenly believe that it’s a percentage of the overall claim amount, but that is not the case. It’s a percentage, which can vary, of the overall value of the property.
Let’s do the math. (exciting, we know)
Let’s say your windstorm deductible is 5%. The value of your property is $100,000, that means your deductible is $5,000.
Make sure to take that into account whenever filing a windstorm claim. If the damage is under you deductible, it isn’t worth filing at all.
What is the Difference Between Named Storm and Windstorm?
Windstorm, named storm, they’re all storms, right?
In insurance, everything is strictly defined.
Windstorm is much broader term that covers more ground. Anything wind related, such as a tornado, would fall under the windstorm deductible. This deductible is usually a percentage of the overall value of the property.
Named Storm is a much narrower definition. In order for it to be triggered, a recognized organization has to name a storm, such as https://www.nhc.noaa.gov/. Once named, all damages related to that storm would be under that deductible, which is also a percentage of your property’s value.
That concludes our blog! Still have questions? Contact us directly(link to email or request form) We are always here to serve you! Come back next month when we have a completely new of questions that we answer.