Many people are unaware of the limitations of their homeowners insurance policy.
Many things are not covered by your home insurance if you only have a basic policy.
Even if a hurricane causes damage, homeowners insurance does not cover damage from storm surge and flood or damage caused by wind-driven waters.
Hurricanes have caused more flooding than usual in the past four years. If you need protection against this, get flood insurance.
There are different ways to settle claims with home insurance.
If you did not insure your home to value or if you did not have replacement cost coverage, you will not receive enough money when you file a claim to rebuild your home.
For instance, if your home is worth $100,000 to rebuild but you only insured it for 75% of its rebuild cost with a 1% deductible and discover that you do not qualify for replacement cost, the claim payment would be: $75,000 less the $750 deductible and $44,250 less the depreciation (actual cash value settlement), which is instead of $100,000.
In the event that you live in specific states, you might have some type of a typhoon or “named storm” deductible. This indicates that the deductible you will be required to pay as a result of a hurricane or named storm can range from one percent to ten percent of the value of your building.
