Most likely you make a checklist for things like grocery shopping, to-do lists for work assignments or performing home repairs. However, do any of your checklists include reviewing your homeowners insurance coverage?
According to a Colorado State University press release, for the Atlantic basin in 2015, researchers are predicting it to be a below-average hurricane season. They also cite there could be a moderate to strong El Niño sized development along with inconsistent cooling of both the tropical and sub-tropical Atlantic.
During a session called ‘Predicting Hurricanes’ at a spring meeting at the Casualty Actuarial Society, research scientist and hurricane expert, Phil Klotzbach informed a crowd of around 150 financial executives that when it comes to hurricanes, the environment is very nonconducive. Casualty and property actuaries closely monitor hurricane activity since property insurance rates are driven by losses from them.
With this year’s Atlantic hurricane season, which approached June 1 and peaks in September, coastal residents are urged by the Insurance Information Institute (I.I.I) to review their insurance coverage to get an understanding of their options and make decisions prior to a potential storm.
In order to help consumers and guide them through reviewing their coverage, the I.I.I. came up with a Hurricane Season Insurance Checklist they can follow.
Some Factors of your Homeowners Insurance you Should Review
In the event of a loss, do you have enough coverage to rebuild your home? It is recommended by the I.I.I. to add on a few extra types of coverage to help with the costs of having to rebuild after a total loss. These include:
- Extended Replacement Cost – This policy will pay an extra 20 percent above your policy limit
- Guaranteed Replacement Cost – This policy will pay the whole amount of rebuilding your home
- Inflation Guard – This will automatically adjust your coverage limit for reflecting any changes in costs for construction
- Law or Ordinance Coverage – This will pay a particular amount to rebuild under newer building codes in the event there are stricter codes adopted by your community
Additional Living Expenses Coverage
Do you have enough ALE coverage in your policy? In the event your home becomes uninhabitable by a covered disaster, this coverage provides for your basic living expenses. This includes food costs, hotel costs and other expenses.
The I.I.I. states that 90 percent of all natural disasters will include some form of flooding; hurricanes are definitely found on this list. Because of this, it is important to have separate flood insurance coverage if you live on a flood plain or in hurricane country.
The Atlantic Hurricane Season Outlook for 2015 predicts about 6 to 11 named storms with 3 to 6 of them being hurricanes. Out of these, the possibilities of them being major hurricanes are 0 to 6.
This is why it is important to review your homeowners insurance for the upcoming hurricane season.