Consumers should review coverage before peak hurricane season begins

WASHINGTON, D.C. – The U.S. will soon be entering the start of peak hurricane season with record warm ocean temperatures, which could trigger above-average activity according to an updated forecast from Colorado State University (CSU). The American Property Casualty Insurance Association (APCIA) urges property owners and renters to contact their insurer or agent to make sure they have the right amount and right types of insurance coverage before hurricane season heats up.

“Following a hurricane is not the time to realize you do not have enough insurance coverage to repair or rebuild your property," said Karen Collins, vice president of property and environmental for APCIA. “Inflation, on-going supply chain issues, and elevated building costs following unprecedented natural disasters have contributed to a significant increase in the costs to rebuild homes and businesses. It is imperative that property owners review and, if needed, update their insurance policy prior to peak hurricane season to keep pace with elevated costs. There are key coverage features consumers should consider that can help prevent underinsurance, so talk to your insurer or agent about your options.”

Insurers also encourage property owners to reduce the potential for damage to your home if a storm strikes. There are several low-cost ways to make your home more resilient to a hurricane’s high winds and torrential rain, such as trimming trees and branches away from the house, inspecting your roof and making repairs to loose or damaged shingles, securing loose gutters, and sealing gaps and cracks around windows and doors to prevent water intrusion. Additional options to consider may include installing a wind-rated garage door or hurricane shutters and upgrading the home or business to a FORTIFIED standard, which could help qualify the property for a premium discount.

“Many insurers offer discounts for taking steps to reduce the potential for damage to the property. Discounts vary by company, so talk to your insurer or agent to see what is available to you,” added Collins.

CSU increased their 2023 Atlantic hurricane season forecast to call for 18 named storms, of which nine are projected to be hurricanes and four are projected to be major hurricanes. The peak of hurricane season typically runs from mid-August to mid-October.

APCIA urges homeowners take the following steps to prepare for the upcoming peak of hurricane season:

1. Review and update your homeowners insurance policy.
   • Call your insurer to review your policy and understand how it works before a loss occurs. Be sure to review your policy limits and deductible (i.e., the amount you will pay out of pocket if you have a claim), and make adjustments, if needed, to ensure you have an appropriate amount of coverage to recover if your property is damaged.
   • Ask if your policy pays replacement cost or actual cash value. Actual cash value takes depreciation into account and replacement cost is the amount necessary to rebuild your home with materials of like kind and quality.
   • Consider adding key additional coverages, such as automatic inflation guard, extended replacement cost, and building code/ordinance coverage.
2. Evaluate your need for flood insurance.
   • Flood damage is typically not covered under a standard homeowners policy.
   • Flood insurance is available as a separate policy through the National Flood Insurance Program or the private market, although some insurers may offer it as an endorsement to the homeowners policy.
   • More instances of record-setting rainfall associated with storms are increasing the likelihood of flooding in areas that are typically outside the flood zone.
   • New flood policies typically take 30 days before they go into effect, so do not delay in obtaining flood insurance.
3. Make a home inventory.
   • Use your smartphone to take photos or videos of your belongings, including furniture, appliances, clothes, jewelry, and art.
   • Save your inventory where you can easily retrieve it, such as the cloud or email a copy to yourself.
   • Many insurers also offer specialized apps to help policyholders create their own home inventory.
4. Gather copies of your insurance policies.
   • Keep copies of your insurance policies (home, flood, and auto) in a safe, dry, and accessible location.
5. Save your insurer’s contact info.
   • Save your insurer’s toll-free claims number to your phone’s contacts so you can easily start the claims process if your home is damaged or destroyed in a storm. APCIA has a list of insurer’s toll-free numbers here.