Hurricanes – The Wind is Bad and Your Home is threatened with a Hurricane Loss
• Most homeowner’s hurricane coverage has a higher deductible. Of course, the deductible is an out-of-pocket cost before the insurance pays on a covered peril. At the Insurance Place of Orange Park, Pickering Agency, we see most clients choosing a 2% deductible. This means 2% of the Limit-A amount is paid by the policyholder. So for every $100,000 of home covered, the deductible is $2,000 (out of pocket). The Hurricane designation is based upon Florida Statute 627.4025(2)(c), which states the storm system has been declared a “hurricane” by the National Hurricane Center of the National Weather Service.
• Remember that Flood Damage is not covered by HO3 Homeowner policies unless the carrier has provided an endorsement in the policy for flood. A separate flood policy is commonly written if acquired through the NFIP, National Flood Insurance Program.
• Be careful to seal the gaps that allow water into your home because many policies will not cover damage from water blown into a home.
• If you do suffer a loss, you are responsible for mitigating the damage, or in other words, taking active steps to limit the loss as much as safely possible. This means tarping a roof or placing plywood in a window. Be sure to document what has happened and what you have done, including saving receipts of your expenses related to mitigating a loss.
• Also, watch out for repair scams. Do your due diligence when selecting a repair company. Avoid signing any agreement with a repair company that relinquishes your control of costs by assigning insurance benefits over to the repair company.