Your Daily Real
Estate Blog
From
Supreme Manor
Real Estate Services
Hurricane
Season Reminds Us To Get Our Insurance
Those
who were in the path of Superstorm Sandy may not have had time to pull out their homeowner's insurance
policy before she hit. It’s important to
periodically check your policy to ensure you are properly covered.
Hurricane Deductibles
l In the past several years, an increasing number of insurers
that operate on the East and Gulf coasts have instituted a second set of
deductibles that apply only when an area is hit by a hurricane. Insurance
deductibles are the amount the homeowner must pay out-of-pocket before
insurance coverage kicks in. Normally, homeowner's deductibles are a set amount
-- usually $500 or $1,000. However, hurricane deductibles are set as a
percentage of the insured value of the home.
l Typically, hurricane deductibles
range from 1 percent to 5 percent of this insured value, according to the
Insurance Information Institute in New York. However, in some cases the deductible
percentage can be even larger. So if your home is insured for $500,000 and you
have a 5 percent hurricane deductible, you'd get no coverage for the first
$25,000 in damage.
l If your insurer imposes a separate
deductible for hurricanes, you need to read your policy carefully because these
deductibles have specific triggers. Some are activated by a hurricane
declaration, for instance, while others specify a wind speed. In addition, some
can be instituted in an area subject to a tropical depression, while other
insurers impose ordinary deductibles -- the $500 to $1,000 set limit -- in
these circumstances.
Flood
Insurance
l It is also important to note that an
ordinary homeowner's policy excludes flood coverage. The key to coverage here,
however, is whether the damage comes from rain that's dropped from the sky or a
surge of water rising from the ground. As too many homeowners learned the hard
way in the wake of Hurricane Katrina, the devastating storm that hit the Gulf
Coast of the U.S. in 2005, a rising tide of water or mud coming up from the
ground is only covered if you have flood insurance. However, if your roof blows
off or is damaged by a falling tree, that's covered by your ordinary
homeowner's policy, as is any water damage from the rain that inundates your
now unprotected home.
I hope this information is useful.
Should you need assistance with any of your real estate needs,
please contact Supreme Manor Real Estate Services 773-881-9224. Feel free to visit us on our website or any
of our social media sites.
Have a Supreme Day!
Sheila M. Wilkinson-Sanders
Managing Broker/Owner - CPA, GRI, CNC
Supreme Manor Real Estate Services
1840 West 95th Street
Chicago, IL 60643
(773) 785-0127 Direct
(773) 797-9640 (fax)
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