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Hurricane Season is Here!

Hurricane Andrew, which ripped through South Florida in 1992, and left insurers on the hook for more than $15 billion in losses, caused the insurance industry to add higher storm related deductibles. At the time, it was the costliest hurricane in U.S. history, although Hurricane Katrina now tops that list, according to the Insurance Information Institute, a New York-based trade group.

So far, around 18 states have a hurricane deductible, a second deductible that is based on a percentage of the home’s value typically between 2% to 5%. So you can see there is a huge difference. Consider if your home is insured for $200,000, your standard deductible may be $500 or $1,000. The hurricane deductible would be $ 10,000. In that case, you would be responsible for the first $10,000 in damages. In some states with hurricane deductibles, homeowners may be able to get a traditional dollar-amount deductible by agreeing to pay a higher premium.

Going forward, make sure you are aware of the intricacies of your policy. Insurance contracts are complicated legal documents that can be confusing. If you do not understand, seek help. If you do not currently have flood insurance, you should consider that as well. An ounce of prevention can really be worth a pound of cure.

With the 2015 hurricane season upon us, make sure you are also prepared with the name and number of a licensed public adjuster. Reliable Claims Adjusting is your advocate throughout the claims process. We are experienced with hurricane claims and will work to make sure your property is once again mad whole should the worst happen in 2015.