The average hurricane season produces 12 named storms and six hurricanes, three of which are major.
The National Oceanic and Atmospheric Administration (NOAA) sees 13-19 named storms of which 6-10 could become hurricanes.
When re-insurers rates go up, insurers have to pay and then pass those high rates on to the policyholder.
Ultimately the cost of premium is significantly less than the cost of being uninsured.
Here are important insurance policy elements to look at to help mitigate your financial loss for the upcoming season:
–The Wind/Hail deductible and/or Hurricane, Named Storm deductible. This is separate from the All Other Property deductible and can be a very high number.
–Water Backup coverage. Damage caused by a blockage in your city’s main sewer line connected to your property that causes water to back up through the sewer line into your basement and damage your property.
–Spoilage Coverage. Dependent property such as refrigerated goods for restaurants and electronic systems for businesses can be wiped out in a storm. This coverage is important and specific.
–Flood Insurance Policy. All properties are at risk of flooding, regardless of your location. In fact, the National Flood Insurance Program (NFIP) says that people outside of what they call “mapped high-risk flood areas” file more than 20% of all NFIP flood insurance claims and receive one-third of Federal disaster assistance for flooding.