Getting sufficient insurance coverage is crucial to managing a condo. However, basic plans may not cover everything you need, especially in hurricane-prone areas like Miami. Make sure you have the right protection before a major storm hits.
Why You Need Hurricane Insurance Coverage
Hurricanes are a fact of life along the Atlantic coast. Every year brings a new hurricane season as wind passes over warm tropical waters. These storms are costly — tropical cyclones cause an average of $23 billion in damage per event.
Without the right level of insurance, it could cost a fortune to restore your condo after hurricane damage. You can’t reduce the likelihood of a hurricane. The only solution is to ensure your building is fortified against storms and that you have the resources to recover the expenses once they’re over.
Hurricane seasons may get worse in the future, too. Scientists discovered that tropical cyclones have increased in both frequency and duration over the past few decades. Consequently, there’s no time to put off getting adequate insurance coverage.
How to Make Sure Your Insurance Coverage Is Enough
Even if you’re confident in your current plan, it never hurts to review it to confirm you have what you need for hurricane season. These steps will ensure you get the coverage you need.
Compare Your Deductible to Your Hurricane Risk
Many condo owners may prefer a higher deductible to get a lower annual premium, but that’s not always the best option. A high-premium but low-deductible alternative may save you more in the long run if you’re particularly vulnerable to storm damage.
On average, five hurricanes hit the U.S. every three years, and Florida experiences them more than any other state. The southern tip and panhandle regions tend to see the most damage. You may want a lower deductible if your condo is in one of these areas.
Recovery after a big storm can easily cost thousands of dollars. If your condo is near water or your risk of damage is higher for any other reason, a higher premium is worth it because the insurer will cover more of the expenses.
Get Specific Flood Coverage
Standard insurance packages do not cover flood damage, but this is one of the biggest ways a hurricane can impact your condo.
You can get flood insurance from government bodies or look at options from your existing private insurer. It’s also a good idea to ensure you have wind coverage. Many homeowners' and condo insurance plans cover wind-related issues, but not all do, so it’s worth a look.
Review Occupants’ Individual Policies
You should ask the occupants who live in the building about their insurance coverage. They are responsible for getting HO-6 insurance for their individual units, but unfixed damage to their residences impacts the entire property’s value.
Make sure your condo bylaws specify that occupants must get homeowner’s insurance. In a hurricane-prone area like Miami, requiring this coverage can protect against wind and flooding.
Changing current bylaws to include these requirements may take time. The motion will need to pass through voting and may require legal consultation, so do your research ahead of time to understand your options.
Protect Your Condo From Hurricanes Today
Hurricanes can be frightening, but you have less to worry about when you’re confident in your insurance coverage. Follow these steps to review your policy and get the protection you need. Once you know you’re safe, you can rest assured that any future repairs won’t be a financial disaster.
Evelyn Long is a writer that specializes in housing market trends. She is also the founder of Renovated Magazine, where she writes essential resources for renters and homeowners. She has contributed to several other sites like the National Association of Realtors and Realty Executives.