Home insurance mistakes to avoid as we enter hurricane season
Nobody likes paying for homeowner insurance.
It’s tempting for homeowners, particularly seniors on fixed incomes, to put off critical upgrades or reduce their insurance coverage to save money.
But doing so can leave people vulnerable, insurance experts say. With forecasters predicting an active hurricane season this year, agents urge everyone to review the conditions of their homes and the adequacy of their insurance policies.
They advise property owners to question whether their homes are strong enough to withstand hurricane-force winds, and whether their insurance policies offer enough coverage to enable them to rebuild if catastrophe strikes.
Replacing your aging roof is one of the wisest investments a homeowner can make, says Chris Heidrick, owner of Heidrick & Company Insurance and Risk Management Services in Sanibel, Fla.
Not only does a new roof strengthen the home against hurricanes and other severe weather, it can make your house more attractive to insurers and reduce your premium, Heidrick says.
In addition, the roof installation company will be required to rebuild your roof to meet modern construction codes, improving its protection against water intrusion and uplift from hurricane force winds.
A roof’s lifespan varies according to the materials it’s made of. If in doubt, hire a roof inspector to check it out and tell you how much longer it will last.
You can spend tens of thousands of dollars to retrofit all of your home’s windows with impactresistant glass, but if you fail to also upgrade your entry doors and pull-down garage door, most companies won’t provide wind-mitigation discounts required by the state for opening protection, says Robert Norberg, president of Arden Insurance Associates, an insurance agency based in Lantana, Fla.
On the other hand, Steve Rogosin, owner of Plantation-based Rogosin Insurance, says some companies won’t withhold the discount if all windows are retrofitted while openings that have no glass, such as entry doors, do not meet wind mitigation standards.
Hurricane deductibles kick in for damage that occurs after a hurricane watch or warning is declared by the National Hurricane Center. Because the hurricane deductible is higher than deductibles for all-other-perils claims, state law requires companies to offer options of a flat $500, plus 2%, 5% or 10% of the dwelling’s replacement value.
Some insurers offer additional choices beyond those required by state law.
Most homeowners choose a 2% deductible, which means a homeowner with a $400,000 replacement value would see $8,000 subtracted from their claim check.
Because homeowners can reduce their premiums by accepting higher deductibles, many will swap a 2% deductible for a 5% deductible. They should do that only if they have an emergency fund that would cover the $20,000 shortfall that a 5% deductible would create, says Dulce SuarezResnick, vice president of NCF Insurance Associates in Miami.