A recent report from the Insurance Information Institute (I.I.I.) shows homeowners in the US should take time to review their home insurance coverage, as Tropical Storm Arlene will come into life early this week.
Arlene, the first named storm of the 2011 Atlantic hurricane season, serves as a reminder for homeowners to be aware of any hurricane deductibles that may be incorporated into a homeowners insurance policy, the I.I.I. said.
Home insurance policies in many coastal states in the U.S. have deductibles that vary depending on the severity of the storm.
“Due to increased coastal development and greater hurricane risk, hurricane deductibles were created to help keep private sector property insurance coverage available and affordable by having the policyholder share more of the risk with their insurer,” Loretta Worters, vice president, I.I.I., said in a statement.
Hurricane deductibles differ from standard homeowners insurance deductibles in that they are a percentage of the insured value of the covered house. Deductibles for standard home insurance coverage, on the other hand, are typically static amounts (e.g. $500).
“It’s important for homeowners to read their insurance policy, understand what coverage they have and make sure to have funds set aside to cover the deductible so they can get back to normal should a disaster strike,” Worters said.
According to the I.I.I. the following states permit insurance companies to include hurricane deductibles in homeowners insurance policies: Alabama, Connecticut, Delaware, Florida, Georgia, Hawaii, Louisiana, Maine, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, Texas and Virginia.
Source : e-wisdom.com