Questions to Consider Before DisastersDo you need flood and windstorm coverage? Do you need more coverage? What does your policy cover and exclude? Will your policy pay "replacement cost" or "actual cash value?" What about "Additional Living Expenses?" What else can you do to prepare? What about policy changes? Have you written down the name of your insurance company, policy number and telephone number to report your claim? How can you safeguard your records? How can you find out more information? How can you make your home more hurricane resistant?
Do you need flood and windstorm coverage? Standard homeowners’ policies do not cover flood damage, defined as "a temporary condition during which water partially or completely covers the surface of normally dry land." Some examples of flooding include: the overflow of tidal or inland waters; or the sudden and unusual accumulation of runoff or surface water. You should carefully check special maps, kept by your county, that show floodplains. If you live in a flood-prone area, contact your agent about obtaining flood insurance. Depending on your home’s location, you may qualify for the National Flood Insurance Program. Warning: this process involves a 30-day waiting period between the time you purchase the insurance and the time it takes effect! Some homeowners' policies cover windstorm damage caused directly by wind or hail, while others don't. A careful review of your policy can show whether it includes this coverage. Your coverage may be placed through the Citizen Property Insurance Corporation (CPIC). You should contact your agent about obtaining a windstorm policy with the CPIC, if necessary. Remember, insurance companies do not accept new applications or requests to increase your coverage, once a hurricane reaches a certain distance from Florida. Back to Top
Do you need more coverage? Your home probably increased in value over the past several years. You may have made improvements or purchased expensive items such as a computer, stereo system or major appliances. Review your insurance policy and check your coverage limits. You should consider increasing your coverage if your policy doesn’t cover the current value of your home and its contents. Back to Top
What does your policy cover and exclude? Standard homeowners’ policies usually limit coverage on valuables such as jewelry, silverware, guns, antiques, boats and other items. Some companies limit coverage on hurricane losses. Check your policy and don’t hesitate to call or write your insurance agent or company with questions. If you live in a condominium, find out what coverage your condominium association provides. You may need to take separate responsibility for the interior of your individual unit. You should also check the deductible amounts contained in your policy. All policies include deductibles for "perils" or causes of possible loss such as fire, hurricane, hail, etc. In Florida, most homeowners’ policies include a separate, larger deductible for hurricane damage and a smaller deductible for other damage. The "Hurricane Insurance Affordability and Availability Act" offers a broader range of deductibles for homeowners to choose. Find out your hurricane deductible and how it applies to your policy. For more information, review your policy and other material sent by your company. Back to Top
Will your policy pay "replacement cost" or "actual cash value?" Let’s say you purchased a television set for $700 in 1993. If that television gets destroyed by lightning in 1999 and your insurance covers the actual cash value, you will not receive $700 from your insurance company. Instead, you will receive a lower amount that reflects the current value of the television, let’s say $300. If your insurance covers the replacement cost and the same television model now costs $900, you could receive $900 from your insurance company. You simply need to replace the television and submit the receipt to the insurance company. Some insurance policies on the contents of your home (i.e. personal belongings) is written on an actual cash value basis. You should keep receipts when you buy high-value items such as televisions, computers, stereos, etc. (You may need this information to verify original purchase dates.) You should also check with your agent to see if you have replacement costs coverage on your contents. Yearly inflation or renovations increase the replacement cost of your home and its contents, while the actual cash value may decrease over time. Back to Top
What about "Additional Living Expenses?" The "Additional Living Expense" feature of most homeowners’ policies pays some expenses for covered losses that leave homes so damaged that residents cannot live there during repairs. Such expenses could include limited motel, restaurant and warehouse-storage costs. You should keep all receipts during this period. This feature does not apply to flood insurance. Civil authorities sometimes issue "mandatory evacuation orders" which affect thousands of residents. You may wonder: Does this coverage apply when a homeowner must evacuate but no damage occurs to the insured property? Or, does any deductible or coverage limit apply? Most policies will provide this coverage when a civil authority prohibits the use of a residence due to direct damage to neighboring homes by a covered threat. Policies generally offer this coverage without any deductible and for losses of up to two weeks. You should check your policy for more information, and contact your insurance agent or company, if necessary. Back to Top
What else can you do to prepare? Make an itemized inventory of your belongings including costs, purchase dates and serial numbers. Attach receipts to the inventory sheet. Your insurance company may require proof of the cost of any item for which you make a claim. Dated photographs or video tapes of your possessions are also a good idea; making an inventory after you lose your home would be difficult. Back to Top
What about policy changes? If you want to make policy changes, contact your agent, who can help you and provide information about rates and coverages. Do this prior to hurricane season. Back to Top
Have you written down the name of your insurance company, policy number and telephone number to report your claim? Learn the name of the insurance company with whom your policy is written. The name of your carrier company may differ from that of your agent, agency, or underwriter. Check your policy or call your agent for this information. Back to Top
How can you safeguard your records? Keep a copy of your important insurance records in a safe deposit box or with a relative or friend. These include your insurance policy, inventory records and agent or company telephone numbers for reporting claims. You will need quick access to this information if your property gets damaged. Upon receiving an evacuation notice, you should take insurance records stored at home with you if safety allows. Back to Top
How can you find out more information? The Florida Department of Financial Services publishes the annual "Insuring Your Home Consumers’ Guide." This publication provides more information on insurance coverage for homeowners, renters and owners of mobile homes or condominium units. For your free copy and more detailed information, call the toll-free Consumer Helpline at 1-800-342-2762. The hearing impaired may call our TDD line at 1-800-640-0886.
Or, you may find out how to download this guide or other related publications by
visiting our storm publications page. Back to Top
How can you make your home more hurricane resistant? The statewide "mitigation" program is aimed at making all Florida homes more resistant to hurricane-force winds before the next big storm hits. In particular, the program focuses on improving existing homes with approved window shutters and roof anchors, and inspecting mobile homes in select parks for proper tie-downs. This joint project between the departments of Community Affairs and Financial Services was launched in 1997 with money from the state’s catastrophe safety-net fund. Through this program, you can obtain a free, comprehensive home-improvement guide containing how-to information along with step-by-step instructions and photos of affordable home-strengthening projects to the public. The guide can be obtained by calling the Department of Financial Services toll-free at 1-800-342-2762. So far, we have discussed some vital steps to take before disasters occur. Since no one knows for sure exactly when such events will occur, it also pays to review key actions to take after disasters. Back to Top
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