Hurricane activity is going up. Is your insurance coverage doing the opposite? | Opinion [Miami Herald]

“Shrinkflation” is a term that has become part of our political lexicon. But while it is commonly used to describe packaged goods, it could apply just as equally, if not more so, to Florida’s insurance market.

In short, that bag of insurance “chips” you think your premiums pay for may now hold a lot of empty space. And the timing couldn’t be worse.

Like many South Florida homeowners, I’ve been concerned to see projections from experts about the busier-than-normal hurricane season ahead of us. A recent report from Colorado State University predicts we could see 23 named storms this year, the highest on record.

However, we are grappling with another aspect of hurricane season with which we’ve also become all too familiar: underpaid or denied claims from property insurance carriers. Despite Floridians having some of the highest property insurance premium inflation in the nation, coverage is shrinking. When a storm strikes, many homeowners find out all too late that there are crucial holes in their policies that make recovering from a hurricane even more devastating.

As president of the Florida Association of Public Insurance Adjusters, I strongly believe every consumer has the right to fair insurance coverage and quick claim payouts. In the same way you might stock up on water, batteries or first aid supplies, you should also take the time to review your insurance policy and your home’s liability. Don’t wait until after disaster strikes to discover that your coverage has shrunk or is inadequate. In light of our insurance crisis, here are five steps I recommend policyholders take ahead of hurricane season.

Examine your exclusions.

Exclusions, used by insurers to mitigate risk, have expanded over time. Common exclusions now cover areas like mold, earth movement, fences, screened-in enclosures and water damage. Review your policy to ensure you understand these clauses and their potential impact on your coverage.

Confirm your deductible.

Higher deductibles offer modest policy cost savings, but the trade-off is increased out-of-pocket expenses. Deductibles have risen, with separate ones introduced for hurricanes, sinkholes and roofs. Confirm your deductible amount, ensuring you can cover it before insurance funds become available.

Check matching endorsements.

“Matching endorsements” limit insurance payouts for maintaining your home’s aesthetic after repairs. Insurers may pay only to replace damaged items with mismatched ones, impacting both appearance and home value. Be aware of this newer option and its potential implications.

Know your home’s vulnerability to storm surge, flooding and wind.

Understanding the risks specific to your property helps you identify potential coverage issues in your insurance policy. Confirm whether your current plan covers damage caused by these events and consider seeking additional coverage if needed. By aligning your policy with your home’s unique needs, you can safeguard against unforeseen expenses.

Understand the “Duties After Loss” section.

This section outlines your responsibilities in the event of property damage, including timelines for filing claims, documentation requirements and other crucial steps. Failure to adhere to these provisions can lead to the denial of your claim, leaving you responsible for repair expenses.

It’s an unfortunate reality that despite increased storm activity in our state and higher-than-ever premiums, Florida homeowners still must wonder if their insurance policy will do the one thing it’s meant to do: protect them. I encourage all policyholders to know their rights and stay informed, and should you have questions about the claims process or your coverage, know that dedicated, licensed public adjusters across the state are here to advocate for you.

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