Get the Most Out of Your Homeowners Insurance After a Hurricane

With Hurricane season around the corner, the Atlantic season starting June 1st and the Eastern Pacific hurricane season beginning May 15th, it is time to start preparing for what this hurricane season may bring

Hurricane Sandy, made headlines around the world after killing 286 people and causing tens of billions of dollars in damage.

But what failed to make headlines was how people recovered from the destruction left behind by Sandy and how homeowners dug themselves out of their financial mess.

Here are eight tips on how you can get the most out of your homeowners insurance after a hurricane.

Know Your Home’s Replacement Cost

• Ask your insurer or broker for a customized estimate of your home’s replacement cost

• Consider an “extended coverage” rider which can add up to 30% on top of your replacement-value limit to cover the surge in labor and material prices that often follows natural disasters.

Know exactly what your homeowner’s insurance policy covers

• The standard homeowners insurance policy doesn’t include coverage for flooding.

• If your home is subject to natural disasters not covered by your standard policy, such as earthquakes or hurricanes, then you should talk to your insurance agent about filling the gap with separate policies, typically sponsored by state government agencies.

Be Persistent with your insurance company

• The bigger your loss, the more trouble you can expect from your insurance company to get your claim paid

• Use a smart phone to take photos of the damage and report the loss verbally as soon as possible.

• If after filing a claim, the adjuster says your policy doesn’t cover a certain loss, ask to see the limit in writing.

Factor in living expenses

• The Additional living expenses coverage (ALE) reimburses the insured for the cost of maintaining a comparable standard of living following a covered loss. 

• If you can’t live in your home due to a covered loss, the insurer will reimburse you for certain expenses.

• Ask your adjuster if you need to file and keep receipts to collect payment.

Seek Financial Relief Programs

Many Hurricane Sandy victims found financial aid from relief funding programs. Keep an eye on the news for relief programs that you may qualify for. You may be able to recover money from losses that weren’t covered by your standard homeowners policy or help pay any other unexpected costs caused by the natural disaster

Keep your insurance documents in a safe place

It’s important to be mindful of where you store your insurance documents. Many Hurricane Sandy victims kept their insurance documents safely stored in their basements that ended up getting flooded. Store your documents in a waterproof safe.

Keep Cash handy

Insurance claims or settlements aren’t always paid quickly. This is why it’s important to keep cash on hand at all times to purchase materials or hire any contractors before your insurance pays. Experts suggest building an emergency savings funds that is equal to six months’ pay to handle any unexpected costs life may throw your way.

Stay Positive

Recovering from a major financial disaster, such as property loss, can be tough. If you ever find yourself in such an unfortunate situation, stay positive. With proper planning, proper insurance coverage, persistence, and patience, you’ll be able to rebuild your home and be back on your feet in no time.