4 Smart Insurance Moves to Make for Hurricane Season

4 Smart Insurance Moves to Make for Hurricane Season

Another reason you might need more coverage: It may now be more expensive to repair or rebuild your home than when you bought the policy. “The cost of labor and the cost of lumber … have gone up considerably because we are in this housing frenzy right now,” Garcia says. And if a hurricane devastates a particular region, that can spark even higher costs locally because contractors and materials are in such demand.

To make sure your dwelling coverage will be sufficient to rebuild your home, ask your insurer about extended replacement coverage. With this optional add-on, your insurer will pay a set amount above your dwelling limit if rebuilding ends up costing more than expected.

“I think of it as a security blanket,” Meisinger says. “If something happened and you didn’t get a calculation 100% right, it gives you that extra layer of security.”

3. Evaluate your deductibles

For some homeowners, a hurricane claim could cost significantly more than other claims.

“If you live in a hurricane-prone area, you could very likely have a separate hurricane deductible you’d have to pay out-of-pocket,” says Jessica Hanna, senior vice president of public affairs at the American Property Casualty Insurance Association, an industry trade group.

Meisinger notes that these separate deductibles may apply to hurricanes, named storms or wind, and could be a fixed dollar amount or a percentage of your dwelling coverage.