In spite of an uneventful start, the National Oceanic and Atmospheric Administration (NOAA) is still expecting a fairly active hurricane season. Hurricane Sandy struck the East Coast last October, causing $18.75 billion in insured property losses in 15 states and the District of Columbia, according to the Property Claim Services unit of ISO. Are you adequately prepared if disaster strikes? As we head into the last few weeks of hurricane season, I encourage my clients to review their policies and to be proactive about protecting their most important asset. The Insurance Information Institute suggests the following tips to help you prepare for a hurricane:
- Consult your insurance carrier: Make sure that you have both the right amount and type of insurance. You need enough to rebuild your home and replace your personal possessions in the event they are damaged or destroyed. With house values starting to rise again, make sure you are adequately covered. In addition, make sure you know what coverage you have for additional living expenses and whether there is a time limit if you have to rebuild.
- Consider flood Insurance. Standard policies do not cover flood damage. Flood coverage is available from the National Flood Insurance Program (NFIP) and some private insurers. According to The Rhode Island Emergency Management Agency (RIEMA), less than 4% of the state’s homes and business have flood insurance. Flood insurance covers your property against hurricane-caused storm surge as well as flooding generated by the storm. It takes 30 days for a policy to go into effect. Flooding can also cause raw sewage to back up into the drains in your home and isn’t covered under a typical policy. Sewer backup coverage must be purchased either separately or as an endorsement to your standard policy
- Inventory Your Possessions. If you have to file a claim, having an inventory helps the process go smoothly if you have good records of your personal items, purchase prices, dates and receipts.
- Know Your Evacuation Route. An evacuation order should never be ignored. You may need more time to evacuate if you have pets or are responsible for an elderly or a disabled person.
- Take steps to make your home and/or business disaster-resistant. FEMA has many tips for hurricane proofing your home.
