Review your insurance

The damage left in the wake of Hurricane Ian permanently changed landscapes, livelihoods, and lives. But Ian and other recent storms have also done major, if less immediately visible, damage to the insurance industry in Florida. And those effects are still reverberating for insurance companies and homeowners.

“I’ve been a Florida insurance agent for 28 years, and I have seen many insurance companies come and go because they can get filled up with all the property they can insure very quickly. After all, when catastrophes like hurricane Ian happen, they must have the money to pay for all the homes they have promised to replace,” says Cathy Sink, owner of Cathy Sink Agency in Fort Myers.

Of the insurers still doing business in Florida, most have increased their property insurance rates. While that might pose difficulties for homeowners, Sink said it’s more important than ever to carefully review the coverage you do have.

“If a homeowner experiences a very large increase, one thing they can do is see if there’s another company that has a bigger appetite for more business and try to get a better rate,” Sink says. “Now, (homeowners) have to be very careful about coverage, because you want to know that you have the right coverage if something happens. If a customer looks at their policy and the dwelling amount, it needs to be enough to rebuild their home. If they don’t know, they should talk to their insurance advisor, a builder, or somebody who can tell them if it’s enough to rebuild their home if it’s destroyed. If it’s not, they need to consider increasing it.”

Given the recent upheaval in the insurance industry, Sink said reviewing your coverage to ensure it’s current and up to date is more important than ever. In fact, there are several things to consider that should be part of your annual preparations for hurricane season.

Review your coverage, deductibles, and renewal dates

Make sure your insurance coverage is up to date and fully in effect. Don’t wait until you have hurricane damage to look at your insurance policy.

“Look at your renewal date and always make sure you make payment before that date so you know you have coverage. After Ian, people who had accidentally let their renewal date pass by without making a payment discovered they had no coverage,” Sink says. “If you or your mortgage company haven’t made any payments by the renewal date, there is usually no coverage.”

In addition, know how much your home is insured for and your deductible amount, and make sure you’re comfortable with both of those amounts. “Deductibles used to be a set amount, but to keep insurance companies solvent in the state of Florida in the event of catastrophes or multiple

catastrophes, the percentage came along. So most of us are under a percentage of the dwelling, and most of the time that’s 2%. Even on a $200,000 home, that’s going to be $4,000,” Sink says. “People need to be aware of that and save that back for a rainy day—because it is not easy after you’ve incurred a big loss and then you have to come up with this big hurricane deductible.”

Understand your coverage

Most homeowner policies are paid at replacement costs, but replacement cost only begins when you decide to replace what you lost. The insurance company’s first step is to give you money for what you had, which might be significantly less than you expected, depending on the conditions. For example, if you lose a roof that is 10 years old, Sink noted the insurance company will cite depreciation, so you won’t immediately get the cost of a new roof. The rest will come after you sign a contract with a roofer and begin the replacement process.

Don’t forget flood and auto insurance

On top of making sure your home is properly insured, you should check over your flood and auto coverage, as well. Allowing a gap in those policies, Sink said, can also be costly.

“Many people are told they don’t need flood insurance because they’re not in a flood zone, but we are all in a flood zone in Florida. Unfortunately, I have seen many floods happen in areas that are considered low-risk flood zones,” she says. One of Hurricane Ian’s most destructive elements was the unusually heavy storm surge, after all. “I try to always suggest that getting at least the minimum flood insurance, even in a low-risk flood zone, is a good idea. Homeowners also need to remember that there is a 30-day waiting period before coverage is afforded on a flood policy. It is too late to call and get coverage when the storm is approaching.”

Sink adds, “While you’re checking out your flood coverage, check your auto insurance, too. During Hurricane Ian, we saw thousands of autos washed away and never found again. Comprehensive coverage is normally very low on an auto policy, and it’s good to have if your car is washed away or a tree falls on it.”

Prepare and protect your property

Before a hurricane strikes, have copies of your insurance policies with you and make sure they go with you should you have to evacuate. If you need to access your policy online, be sure you know your account information. In addition, to avoid denial of claims due to pre-existing damage, take photos of everything in your house before hurricane season and store them somewhere online that you can access any time.

n addition, make sure your home is protected against storm damage—including shutters, sandbags, or other precautions. Most importantly, have those protective measures in place well before a storm threatens.

“Homeowners are required under their policy to do whatever they can to protect their home,” Sink says. “There can be a big list of supplies you’ll need. Just be sure to get them in advance, because it can be a nightmare if you wait until the last minute.”

Be ready to make a claim

If you do have storm damage, file your claim as soon as possible. Even minor damage can become a major problem later on. Do what you can to safely repair and preserve any part of your home or property that’s been damaged. Make sure to document the aftermath via video or photos to compare with your “before” photos to show the extent of the damage.

“An agent or claims adjuster may not be able to get there immediately, but the insurance company needs to see what has happened. So always take pictures or video to have a good record of the damage,” Sink says. “Save receipts for any repair you do need before the adjuster arrives. And even if your damage seems minor, document it and report it.”

Take cues from your neighbors, too. “If you’re looking around and everybody on your street is getting new roofs, you need to get your roof inspected. You need to get your home inspected,” Sink says. “Don’t assume that there’s nothing going on. There could be and you just can’t see it.”

Finally, no matter how much the insurance industry in Florida or your policy has changed since Hurricane Ian, one thing remains the same. If you need to file a claim, remember that roads may be blocked, phone and internet service may be down, and things may be moving slowly … so you’ll still need to be patient.