Batten Down the Hatches for Hurricane Season

With some forecasters saying the 2010 hurricane season could be a real bad one; do you have the right homeowners’ insurance in place to protect your home and belongings?

Hurricane season began June 1, and runs officially until Nov. 30, although obviously hurricanes can occur at any time.

The average amount of named storms each year is 11, including six hurricanes, with a pair of them becoming major storms. No hurricanes made landfall in the U.S. in 2009.

To be ready for the season, here are some tips to assist consumers:

• Make sure you have enough coverage in the first place - Obtain enough insurance to rebuild your residence and to replace all personal belongings. In the event you made a major change or improvement to your home, or you have made major purchases, notify your agent in order for the increased value to be reflected in your policy.
• Check to see what your coverage amount is for Additional Living Expenses (ALE) - This coverage pays for the additional costs of living out of your home, such as hotel bills and restaurant meals, while the residence is being repaired or rebuilt. Added coverage is typically available for an extra premium.
• You should also inquire about flood insurance - Flood damage is not covered with standard home insurance policies. Flood insurance for homeowners and renters is an option through the federal government’s National Flood Insurance Program, which is serviced by private carriers, and from a handful of specialty insurers. Excess flood insurance is also an option from some private insurers if the consumer needs coverage over and above the $250,000 for property and $100,000 on contents that the NFIP provides.
• Check out a guaranteed or extended replacement policy for the structure of the residence - Extended replacement cost coverage pays a portion above the policy limit to repair or replace a damaged home — typically 20 to 25 percent. A guaranteed replacement cost policy pays to rebuild the home regardless of cost.
• Inquire about replacement cost coverage for belongings - When insuring one’s possessions, the consumer has two coverage choices. One is actual cash value, which replaces the belongings less depreciation. The other is replacement cost coverage, which replaces the property at today's value—minus a deduction for depreciation. While a replacement cost policy costs about 10 percent more, it provides added extensive coverage.
• Put together a home inventory – The home inventory helps the consumer purchase enough insurance to replace their possessions and can help move along the claims process. If you have a list and/or pictures and videos of the home merchandise, store it somewhere safe outside the home.
• Finally, it certainly helps to hurricane-proof the residence – This can be done by replace any old items like roofs and garage doors, along with installing storm shutters and making sure sliding glass doors are made of tempered glass and protected with plywood or shutters.

While hurricane season can certainly be deadly and expensive, there are ways to improve your safety odds and that of your residence and possessions.