All Risk Insurance Group recommends a review of your
homeowner’s insurance as an important precaution
South Florida is an amazing place to live…but it can also be a magnet for natural disasters. Ok, maybe not earthquakes or massive freezes, but certainly hurricanes, flooding, windstorms and even the occasional wildfire, believe it or not. And, of course, a natural disaster can impact your home, arguably your largest asset, in some very severe ways. Which is why All Risk Insurance Group wants to ask you, is your house adequately insured for the next natural disaster?
If you haven’t performed an annual review, now is a great time. That way, if there is a problem in the near future, you will know exactly what to expect if you need to file a claim. Not everyone knows their policy’s details, but they really should.
That said, if you don’t know how ready your home is for the next natural disaster, and reading the policy doesn’t exactly spell out answers for all your concerns, you should consider calling All Risk Insurance Group. Our experts can walk you through what coverage is optimal, what coverage might be missing, and what is being overlooked.
Stay above water; literally and figuratively
If there is a problem, you should know before the next catastrophe hits. Talk to one of our independent agents about the natural risks that may be impacting your home; why floods generally aren’t covered under a homeowner’s policy and what deductibles make sense for hurricane coverage. In addition to peril-specific coverage, they will recommend you have enough coverage to fully replace your home, should the worst-case scenario ever come to pass.
To achieve adequate coverage, you may need a mix of homeowner’s insurance, including flood insurance and wind insurance, for example. According to the National Flood Services, a flood insurance processor, 62% of homeowners believe they are prepared for a flood, but only 12% actually have any flood coverage. Why? Because flood damage is excluded from standard home insurance policies.
Review your current homeowners’ policy to see if you are covered for a flood. Look for water exclusion causes that exclude floods due to external sources, such as sewage or water main failures, tsunamis and standing or groundwater. And research the area you live in to understand how you may be impacted by a hurricane or heavy rainfall. You may be at higher risk than you think.
What are homeowners typically missing?
Example: A tree falls in your yard without hitting your house or any other structures. Unless you purchased extra coverage for debris removal, your home policy likely would not cover the cost. However, if the same tree falls as the result of something covered by your policy (lightning strike, for instance) and blocks your driveway, your policy very likely does cover debris removal up to a certain amount, like maybe $1,000 for debris removal. Depending on your circumstances, that may be enough. But unless you review the policy to be sure, it might not be enough, and you do not currently know for certain.
Example 2: Food spoilage (or “refrigerated products coverage”). There is a storm-related power outage, and you have a freezer full of food that spoils due to lack of power. If you have food spoilage coverage, it is probably for a specified limit, like $500. However, you are still responsible for your deductible. So, if you have $400 worth of spoiled food and a $500 deductible, you would not be receiving an insurance check for that loss. Not with that coverage.
Finally (although there is so much more to say, or review)
While running an assessment of your insurance needs, All Risk Insurance Group wants to stress the importance of validating the home’s replacement cost, to make certain you are not underinsured. If you are concerned about a natural disaster, you will want to be extra diligent about replacement cost of coverage. And pay close attention to your policy’s loss settlement clause. Some policies require you to rebuild in the same location, while others allow you the option of taking a cash settlement and rebuilding someplace not so susceptible to natural disasters.
Know the answers to these questions and more before the next disaster strikes. The professional staff at All Risk Insurance is here to discuss all your insurance needs. Feel free to contact us to discuss what type of policies are best for you.