Insurance Claims
Florida’s hurricane season is in full swing and residents are preparing for the worst. Some are stockpiling goods, others are creating exit strategies, and many are checking on their hurricane insurance policies. Unfortunately, while a hurricane insurance policy seems like a straightforward legal document, many of them have holes in their coverage plans. Therefore, it is crucial that you review this short guide to better understand how hurricane insurance works.
Every Policy Is Unique
Your hurricane insurance policy may have similar traits to someone else’s, but in reality, every policy is different. This is because every private insurance company offers a variety of hurricane insurance options, and each of these options will impact what is covered (and not covered) in a home. Additionally, each home has a stated worth, and the total price of the house will impact an insurance policy. Therefore, every insurance policy is different because every home has a different cost; additionally, every insurance policy is different because every person chooses the policy that’s right for them.
Coverages Are Very Specific
Unfortunately, many insurance carriers purposefully create policy language that tricks people into thinking they are covered in a variety of areas; in reality, someone’s coverage may not be as potent as they think.
For example, hurricane insurance only covers damages caused by a recognized hurricane, which means a storm with high winds (but not high enough to be categorized as hurricane winds) that damages a home is not covered under hurricane insurance. Unfortunately, this leads many to believe that their hurricane policy covers storm damage, but in reality, that is not the case.
Additionally, hurricane coverage only covers damages caused by hurricane winds. If rain during a hurricane storm floods your house, but hurricane winds had nothing to do with the flooding of your house, then the water damage that resulted from the rain is likely not covered by a hurricane policy. Hurricane coverage would cover an incidence of flooding if the winds of a hurricane destroyed a portion of your roof, leading to inundation caused by hurricane rains.
As you can see, the language in your policy is crucial to your ability to recover!
Hurricane Deductibles May Impact Your Recovery Amount
Most hurricane insurance policy carriers offer hurricane deductibles that, when agreed to, will impact someone’s recovery amount. Deductibles are a great way to lower the price of monthly insurance costs, but when a hurricane hits, high hurricane deductible percentages come back with a vengeance.
Let’s create a scenario to help clarify this point. The median cost of a home in Miami is $329,300. Using this median price, let’s assume that someone agrees to a hurricane insurance deductible of 2% of a median home’s total value. Now let’s say that a hurricane hits and destroys this person’s roof, and the repairs are going to cost $20,000. Although this person was saving money on their yearly insurance payments, now that a hurricane has destroyed $20,000 of their property, the deductible will significantly affect their recovery amount. As the deductible is 2% of the home’s total value, the homeowner will have to take on $6,586 of damages before insurance will help. Therefore, the insurance company will only pay for $13,424 of the $20,000 of damage, and the rest will have to come out of the person’s pocket.
While deductibles can be a great way to lower your monthly insurance payments, in reality, some deductibles will end up costing more in the event of a hurricane. Therefore, understanding if you have a hurricane deductible, and the exact percentage amount of that deductible, is vital to being prepared for a hurricane disaster.
When a Storm Hits
When a storm hits, your insurance policy can either be a blessing or a curse depending on the coverage amount, the deductible, and the damages that are covered. Unfortunately, another uncontrollable aspect of your coverage is the fact that many insurance companies will do everything in their power to shortchange your insurance claim.
However, The Morgan Law Group P.A. is here to help. If you or a loved one’s hurricane claim is denied by your insurance provider, contacting The Morgan Law Group can make all the difference. We have more than two decades of collective legal experience, which means we know how insurance companies think and act. We know their tricks, and we will do everything in our power to thwart their attempts to shortchange your recovery.
If you need help obtaining a fair insurance recovery, call (844) 818-0774 for a free consultation!
