Insurance Tips

You want to be financially safe and prepared for the damages that hurricanes and other disasters can inflict. You should take steps before and after a hurricane to reduce the costs of any damages.

Before Hurricane Season

• Buy and review your homeowners or renters insurance policy
• Check your coverage for flood and windstorm damage
• Check coverage limits, exclusions, and deductibles
• Do home improvements to protect your home and lower insurance premiums
• Check into building code changes
• Know your insurance agent and company contact numbers
• Itemize personal property in a home inventory list

After the Storm

• Use a disposable camera or video camera to document damage
• Immediately contact insurance agent and company
• Make and document emergency repairs
• Use only licensed contractors and insurance adjusters
• Never pay all repair costs up front and always get a receipt

Buy Home and Property Insurance

Homeowners or renters insurance can help people recover financially from significant damage to property. Yet many make the mistake of being underinsured or not insured at all. Make sure you buy the insurance you need to protect you against the dangers you may face. Homeowners insurance may not cover floods or other major disasters, so know exactly what coverage you need and have. Buy special coverage for specific disasters that your homeowners insurance does not cover.

Homeowners Insurance

• Buy full replacement or replacement cost coverage. This will allow the structure to be replaced up to the specified limits of the policy.

• Check into a guaranteed replacement cost policy. The house can be rebuilt, with improvements, at current prices no matter what the policy limits.

• Reappraise your property so the policy reflects real replacement costs.

• After any home improvement, update the policy to reflect added value and costs.

• Know exactly how the deductibles work, and how much you have to pay before the policy pays.

• If you have difficulty getting private coverage, check into state or federally operated insurance.

• Have a home inventory list to make sure that your coverage matches the value of your possessions.

• Know if your policy covers the replacement cost of your possessions or only pays for the actual cash value.

Renters Insurance

• A landlord’s insurance will not cover damages to your belongings. Buy renters insurance for your protection.

• Know exactly what the policy will cover.

• Compare policies for best coverage and prices.

Special Coverage

Flood Insurance Coverage

Flood damage usually is not covered by homeowners insurance. Check your policy to confirm flood coverage. If your insurance company does not provide flood coverage, contact the National Flood Insurance Program for the names of agents in your area who write flood insurance.

New Building Codes May Cost You More

You may need additional insurance to cover the costs of rebuilding in accordance to new, stricter building codes. You may also want to consider additional structural improvements for more protection of your home and property.

Home Office Coverage

Check whether you need to buy additional business coverage to cover your home office computer equipment. For some home businesses a separate small business policy will be a better choice and provide more coverage.

Home and Household Inventory

Making a list of everything you own is bothersome, but it is important for when a hurricane or disaster strikes. A home inventory helps prove the value of your possessions and will speed up the insurance company’s payment process. It will also provide tax deduction documentation.

Make copies of the completed inventory and keep one in a safe place other than your home where it might be destroyed.

There are computer software programs available that make the chore of doing a detailed inventory easier. The household inventory should be created in a spreadsheet format.

How To Do a Home Inventory

• Go from room to room and write down pertinent information about all your possessions. Serial numbers, date of purchase, costs, receipts, market value. Use a camera or video recorder to visually document the items.

• Write down the building material of large or expensive items (furniture, jewelry, plumbing fixtures).

• Inventory both expensive and inexpensive items. Replacement costs will add up.
Inventory items inside and outside the home, in garage, basement, and attic.
Record any improvements, inside and outside of the house.

• Photograph cars, boats, recreational vehicles, the full exterior of the house, and yard.
Keep copies of receipts for expensive items.

• Get appraisals of expensive items with value that is difficult to document.

• Write down the location of all original important financial and family documents. Make copies of deeds, wills, birth and marriage certificates, tax returns, insurance policies, and stocks. Keep originals in a safe place (this is location to be noted) and keep copies handy.

• Keep your inventory list updated.

How to File A Claim

Insurance companies require that you initiate and go through necessary processes before they pay you for damages incurred during a hurricane. It is important that you keep a cool head and know what the procedures are, so you can get the help and payment as quickly as possible.

What to Do After the Hurricane

• Contact your insurance company immediately
• Know your policy and find out if the damage is covered under the terms.
• Find out how long you have to file a claim, and how long it will take to process it.
• Confirm whether your claim exceeds your deductible.
• Check whether you need estimates for repairs.
• Photograph or videotape all hurricane damage
• Do not throw any items away until the adjuster has seen it.
• Make temporary repairs to protect your home from further damage
• Save receipts to submit to insurance company for reimbursement.
• Make extensive repairs only after the claims adjuster has assessed the damages.
• Relocate if necessary
• Record your expenses and keep receipts if you have to find other accommodations due to home damages.
• Be prepared for adjuster’s visit
• Make a list of damaged or destroyed items and have a copy ready for the adjuster, along with copies of receipts.
• Note all structural damage to your property.
• Get detailed, written bids from licensed contractors.

Keep good records

Immediately start a notebook documenting all contact with your insurance company. Note the names, dates, times, descriptions of what was said, any missed appointments, etc.

Keep originals of all insurance documentation.

Document information pertaining to contractors, and keep all receipts and estimates.