Review your coverage - before a storm is on the way

Property owners should meet with their insurance agents to review coverage before hurricane season starts.

After a storm is on its way, it’s likely too late. Normally insurance carriers will stop writing policies when a hurricane warning or watch is issued for any part of Florida.

Property owners also should review their deductibles.

Most deductibles for hurricane or wind coverage are 2 percent of the total coverage amount. So on $400,000 worth of coverage, the deductible is $8,000. That means a homeowner will have to pay that much out of pocket before insurance will start paying for damages.

Check to see if you have what’s called “replacement coverage” or “actual cash value” coverage.

Replacement coverage is better, industry representatives say.

Here’s why: Say your roof is blown off and it will cost $50,000 to replace it. If you have replacement coverage, the insurance company has to pay you $50,000, minus the deductible. If you have actual value coverage, the insurance company only has to pay you a fraction based on how much the roof has depreciated. So, if your roof has an estimated 20-year life span and is 15 years old now, then the insurance company will only pay you $12,500, minus the deductible. You would have to pay more than $37,500 out of pocket to fix your roof.

Replacement coverage typically costs 10 to 20 percent more.

Regulators from Florida’s Office of Insurance Regulation and officials from the Florida Insurance Council offer the following advice on what to do before and after a hurricane hits:

Before hurricane season

• Evaluate your existing coverage before hurricane season starts to make sure your coverage reflects the value of your home and its contents. Consider increased market value and whether you’ve made expensive purchases in recent years, such as for computers or other electronics. Remember that most insurance companies won’t allow you to adjust your coverage once a hurricane is approaching Florida. Homeowners with hurricane shutters covering all windows can get a 10 percent discount or more on coverage.

• Make an inventory of your belongings with photos and serial numbers. Doing so is time-consuming, but worth the hassle if a disaster hits. At least take pictures or make a videotape of your belongings so you can prove later to insurance adjusters what you owned and authenticate its level of quality. Also, consider keeping and filing receipts for big-ticket items in a safe place or sending them to relatives. Another tip: Take electronic photos and e-mail them to a family member or a Web-based account so you can have access to them even if your computer is damaged. You can download a free home inventory check list at the Insurance Information Institute’s Web site: www.iii.org .

• Write down the name of your insurance company, policy number and the telephone number you need to report a claim. Keep it with you. Also, store your insurance records in a safe place such as a safe deposit box or send it to a family member or friend along with an inventory list. You will need quick access to this information if a storm does hit.

• Consider whether you need both flood insurance and windstorm coverage. Homeowners’ insurance policies typically don’t cover flood damage, so an additional policy is needed. Check county maps to see if your home is in a flood zone or flood-prone area and obtain coverage if needed.

After a storm

• Report your claim as quickly as possible.

• Make temporary repairs to stop further damage, but wait for an adjuster to evaluate your damage before making any major repairs. Take before-and-after pictures and keep receipts for materials used in emergency repairs.

• If you have a homeowner’s policy, flood policy and windstorm policy, report your claim to all three. The adjusters will sort it out.

For more questions and answers to frequently asked questions, see the Department of Financial Services Web site: www.fldfs.com/Consumers/disasterfaq.htm .

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Important phone numbers

• Florida Division of Emergency Management — (850) 413-9900

• FEMA — 1-800-621-FEMA

• Department of Financial Services Insurance Claim Hotline — 1-800-22-STORM

• Report Insurance Fraud — 1-800-342-2762

• Report Unlicensed Activity — (850) 532-1440

• Attorney General’s Price Gouging Hotline — (866) 966-7226

• Collier County Contractor Licensing — (239) 403-2431

• Lee County Contractor Licensing — (239) 344-5895