Home insurance and the arrival of a hurricane

There have been a number of impressive hurricanes over the last decade, the most recent being Irene which managed to deluge even mountainous Vermont with an unexpectedly large quantity of water. No matter who is right on the question of climate change, there’s little doubt there have been some catastrophic weather events. Indeed, 2010 was a record-breaking year for claims from adverse weather and 2011 is lining up to beat the record. So, when it comes to reviewing your home insurance policy, you should pay particular attention to all the terms defining what perils are included and, more importantly, what are excluded. If there are going to be problems should you be unlucky and suffer damage, you should know about it before you claim.

Flooding has proved particularly controversial. As we have covered more of our land with concrete, there has been an increase in the level of flood waters. Now, the majority of private home insurance companies are refusing cover whether the floods are caused by rain or as storm surges caused by the wind. More importantly, damage caused to your basement by rising ground water is probably excluded. Whether a backwash from the local sewers and drains is covered will be stated by the policy. The only option for most in such situations is the National Flood Insurance Program. This is funded through FEMA although the policy is sold by private insurers. However, private insurers do offer cover for water damage, say caused if heavy rain comes through a hole in your roof.

Hurricanes usually arrive accompanied by strong winds which may damage the structure of your home or bring down branches or trees which do the damage. Again, you need to look very carefully at the home insurance terms. Some contain a high wind damage deductible, particularly if you live in an area prone to hurricanes. So if your roof blows off, you may find yourself paying a big slice of the repair costs. This should be read together with water damage because, if you lose the roof, the rain is going to bring down ceilings and damage the contents.

Damage to your family’s vehicles is usually a matter for the auto insurance company. A comprehensive policy will contain clauses defining the extent of the damage that will be covered. The only other matter to consider is whether you want a contribution to your living expenses should you be forced to move to alternative accommodation while repairs are made.

Home insurance and the arrival of a hurricane

More About Home Insurance

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Home insurance — what is the standard cover?

Home insurance and the arrival of a hurricane

Common home insurance exclusions and limitations

Home insurance — you should review your policy every year