No Hurricanes, but a Tornado?

Here we are in the peak of Hurricane Season, and we get hit with a nasty wind and hail storm, and possibly a tornado!  If this doesn't make you question if you have the right coverage on your home insurance, then nothing will.

Most home policies have some kind of wind or hurricane deductible today.  Usually there is some kind of a starting point, such as a specific wind speed, or a certain level of a hurricane.  The wind and hurricane deductibles will mean that you have a separate deductible for wind damage.  So if you have a fire, which is a lower probability, you will have a $500 or $1000 deductible for example.  But if there is wind damage, it could be $1000, or a percentage of the insured value of your home.

So if your house is insured for $200,000, and you have a 5% deductible, you will pay for the first $10,000 of damage before your insurance company pays to fix your home.  That is a lot of money!  It is important to know what you have before you need it. If your company or broker haven't told you, you need a new company.

Why are companies doing this?  Because the "reinsurance" that they used to buy either isn't available, or has these types of clauses in their policies.  That's right, most insurance companies buy insurance themselves.  They make most of their money on the "reserves" that they invest, but can't keep enough aside to cover a major catastrophe. 

Homes cost a lot more to repair, and in NY, the population is so dense, that most companies can't handle the potential payout of a major storm.  One major company just took a 30% increase in rates because of the possibility of a major storm hitting, and them having to pay out on wind damage.  Others have restricted where they will write business.  They are all relying on some kind of a deductible to help spread their risk.

What can you do?  Call me, or fax me a copy of your policy. I will decipher the insurance language to tell you what you have.  Many companies want you to deal directly with them because they know that you won't be able to understand or read the fine print.  So they cut their rates, and leave you high and dry when you have a claim.

So act now before the next storm hits, and you have to decipher what is covered, and how much you are out of pocket on a claim!  888-900-2173