Hurricanes and tropical storms are famously unpredictable, which can make preparing for inclement weather especially challenging. However, there are steps you can take to protect your property and provide you and your family peace of mind long before a storm hits the radar. Here are some things you can do in advance of hurricane season.
Review your policy and identify any gaps in coverage
As your life changes, so do your insurance needs. By reviewing your policies on an annual basis, you can identify any areas where you may need to add or adjust coverage. For example, you may have insured your home for $200,000 when you first bought it. Due to recent inflation and supply chain issues, your home may cost $300,000 to rebuild in today’s market. That is a $100,000 gap in coverage, which could leave you without the proper resources to rebuild in the event of a loss.
An insurance review can help you understand what sort of damage may not be covered under your existing policies. For example, it is a common misconception that a standard homeowners insurance policy protects against flood damage resulting from severe weather events. Regardless of whether you live in a flood zone, flood insurance can help you protect your home and its furnishings against these damages, potentially saving you thousands in out-of-pocket expenses. Talk to your South Carolina Federal Insurance Solutions advisor about your risk of flood damage, or get a quote in minutes from Neptune Private Flood Insurance.
Be prepared to pay your deductible
As a result of rising insurance costs, many homeowners are experiencing an increase to their deductibles. In some instances, insurance carriers have increased deductibles on policies in an effort to pass along rising claims costs to consumers. In other cases, consumers are opting for higher-deductible policies to help lower premium costs. Either way, it is important to understand how an increased deductible will impact your budget if you need to file a claim.
A typical hurricane deductible can range from 1% to 5% of a home’s insured value. If your home is insured for $500,000 and your hurricane deductible is 3% of your home’s insured value, in the event of a total loss, you will be responsible for paying $15,000 towards damages before your policy kicks in.
If you are not sure how you would pay a large deductible, you are certainly not alone. In fact, many adults do not have enough emergency savings to cover repairs in today’s market. Whether you are just getting started or want to ramp up your savings, South Carolina Federal Credit Union’s complimentary financial wellness platform has tools to help you build your emergency fund. Click here to get started.
Create a home inventory
A home inventory is a detailed log of all of your possessions. Many insurance carriers recommend keeping an up-to-date home inventory, as it can help ensure you have enough coverage and save time and stress when filing a claim.
Your home inventory should account for nearly every item in your household. From appliances to furniture, and all of your miscellaneous items in storage, your list should be comprehensive and include the following:
- Item description including the serial or model number. If possible, use photos or videos to record everything inside and outside of the home and other structures on the property.
- Cost and date of large purchases with sales receipts or appraisals.
- Estimated replacement cost of each item.
Assembling a household inventory may feel like an overwhelming project. However, completing it in advance of a severe weather event can save you valuable time once a storm is projected for your area. Once you have completed your home inventory, do not forget to store it in a safe deposit box or another location where it can be accessed easily in an emergency! Remember, you can adjust your insurance policies at any time, though, you may experience a 30-day waiting period before coverage goes into effect. Hurricane season starts June 1, which means homeowners should plan ahead to ensure coverage is in place before a storm hits the forecast. To get started preparing for hurricane season, contact us to schedule a complimentary review of your coverage.
