home Insurance: Hurricane season is here: get ready for the storm

Hurricane season has already started but it’s not too late to protect yourself from losses. First, make sure you have an insurance policy. Many insurance companies have cancelled policies as far north as New York. There are state-run policies in East and Gulf coast states such as Florida and Massachusetts. These typically offer sparse coverage for a high price. Next, determine if your policy still fits you. If you experienced many losses that were not covered in your last policy, you probably need an “all risk” policy, not your former “named perils” policy.
Thirdly, keep a list of all property inside the home with receipts and photographs. You can then prove to your insurance company what your property was actually worth.
You should have basic homeowner’s insurance. This covers rain damage resulting from when rain enters a wind-damaged area, theft, vandalism, and fire. Homeowner’s insurance also typically covers 50% of the value of your personal property inside the home. Most homeowner’s insurance covers “additional living expenses” (ALE) so you can stay in a hotel and eat out while your home is being repaired. The ALE’s are typically equal to 20% of the insurance on the home. Basic homeowner’s insurance should cover wind and hail damage. You should get a separate policy if it does not. If you live in a flood-prone area, you should have flood insurance. Flood insurance covers damage by waves, tides, overflowing rivers or lakes, and groundwater runoff. You can get “excess” flood coverage beyond the usual $250,000 policy. Comprehensive auto insurance covers cars damaged by hurricanes.
You may be able to save money by raising your deductible or buying two types of insurance from the same company. You can also save by buying a home that is more hurricane-resistant, such as a brick home, or taking steps to hurricane-proof your house. You should look for gaps in your insurance policy. One common gap is the omission of coverage for resulting damage like mold. You should purchase additional coverage for mold if possible.
Finally, you should have a hurricane emergency kit for you and your family. This kit should contain a radio, flashlight, extra batteries, first-aid kit, food and water for at least three days, and a can opener. If you prepare well, you should be able to keep track of your information and minimize damages so you can recover quickly.

Article 2 of 2 in Types of Insurance Packages

Insurers in most states use a number of standard forms for the various homeowners’ coverages. Here’s a list of the most commonly used forms:
HO-1 is very basic coverage, insuring against fire or lightening damage.
HO-2, called “broad coverage,” also covers loss of or damage to property resulting from windstorm or hail, theft, explosion, smoke damage from vehicles and aircraft, glass breakage, removal of property endangered by covered peril such as fire, vandalism, malicious mischief, and riot or civil commotion. HO-2 also covers building collapse, freezing of or accidental discharge of water or steam from within plumbing, heating, or air-conditioning, falling objects, weight of snow, ice, or sleet, and rupture or bursting of steam or hot water heating systems.
HO-3, called the “special” form, insures your home and detached structures against loss or damage from any peril except for those specifically excluded in the policy. This is the policy most homeowners purchase. It is important for you to read your policy carefully to see what is excluded—you may want to cover exclusions with special endorsements.
HO-4 is a tenant’s policy and insures your household contents and personal belongings against the perils of the HO-2 policy. It also covers additional living expenses if needed, medical payments, and also liability protection.
HO-6 covers a condominium unit-owner who wishes to insure items not insured by the association policy, as well as the personal property inside the unit and personal liability protection.
HO-8 is the “older home” policy. Having an older home may preclude your being able to buy a replacement policy; you may have to buy a modified replacement policy instead. This means that instead of replacing such older home materials as plaster walls for example, the policy will pay for standard building materials and processes in use now. Some states designate their forms differently, using such titles as HO-A, HO-B, etc. but the coverages are generally the same.Make sure you are covered! As you can see, insurers use a lot of forms. Now that you know what they mean, make sure you have the right coverage for your home and shop

Buying homeowners’ insurance: using an agent vs. Buying direct

This choice between using an insurance agency or buying homeowners’ insurance directly from a company is mostly a personal one. Will dealing with the same person about your insurance issues over time make you more comfortable? Do you want to discuss your insurance plans and needs with someone who knows your home, family or homeowners history? Do you want the agent to do the insurance shopping for you and handle claims? If the answer is yes, you want to deal with an insurance agency. Remember though, insurance agents receive commissions from the companies they represent, so this may limit your choices, and ultimately cost you a bit more.Many people want to deal directly with a company because it is simpler and more straightforward, probably a bit less expensive, and the choices are strictly the consumers’ choices. You don’t have to go through an agent or wait until an agent is available. Direct writers generally have 24-hour toll free claims handling and service, so a phone call is all that’s needed. While you lose the personal service, this ease of use and savings may make this loss worthwhile. To receive a free quote, check out the Free Advice Insurance Center.