Know what you are getting into with insurance companies. Understand what questions you need to ask and to expect.
If You Are Insured, Assess Your Situation.
For many survivors of Hurricane Season 2004, the actual storm was nothing compared to the insurance nightmares that followed. You’ve all read the newspaper stories and seen the TV news, months later numerous Floridians are still battling with their insurance companies over claims. Many needed lawyers to force a resolution.
Scary and stressful. Absolutely. The insurance industry is in a crisis. It’s going to take homework and research on your part to make sure you are adequately covered.
• Ask lots of questions. Find out exactly what you are covered for and what is excluded. If you don’t understand it make them explain it again and have them put it in writing.
• Understand the fine print.
• Have your agent explain exactly how your deductibles work.
• Find out what changes have been made to your policy – if you purchased it a few years back there have probably been changes and/or exclusions.
• Ask about flood policies.
• Understand windstorm protection.
• Make sure any new purchases are properly insured.
• Understand replacement cost versus actual cash value.
• Ask your agent for an inventory list and do it, taking pictures and logging serial numbers.
• Take the time now to find out what will happen in the event of a storm. Who do you call? What steps does your agent expect you to take?
• Will they cover your living expenses should your home be unlivable?
These are just a few of the issues you need to address NOW.
While the whole situation is frustrating, most advisors feel that if you are lucky enough to still be insured by a major insurer with a good rating from AM Best that you should stay with them. Many companies have stopped writing insurance in Florida, so shopping around may not be that easy.
