Florida Residents Review Home Insurance Policies as Storm Season Approaches

Posted in Home Insurance

May 21st, 2009

Homeowners in Florida are not only preparing for the upcoming storm season; they’re also taking steps to ensure their home insurance policies will cover any impending damage. According to the chairman of the Florida Association of Insurance Agents,making sure that youare properly insured for the replacement costs of your property isnecessary step when you own a policy.

But this is not the only type of coverage that a business or homeowners in Florida should consider. Because the upcoming storm season can bring with it a myriad of problems, including floods, wind damage, and more, making sure to include some kind of windstorm coverage in business or home insurance policies is a must.

Unfortunately, many individuals through Florida do not have the funds to pay for private policies that will cover the damage associated with a windstorm. As a result, they are forced to take on Citizens Property Insurance Corp., which is the state’s insurance option for those who can’t afford other home insurance policies.

While it’s great the company offers affordable coverage, many complain that it doesn’t contain enough funds to pay for the damage that could occur to its thousands of policy holdersproperty after a storm. And unfortunately, in order to make sure that there would be enough money available to cover damages, premiums would have to increase by as much as 55% per policy holder.

As a supplement to increasing premiums over the next several years, lawmakers have voted to implement a cash build-up over a similar period of time to help aid the Florida Hurricane Catastrophe Fund. This fund sells up to $29 billion in backup insurance to private carriers known as reinsurance. This reinsurance helps to pad the funds need for the aftermath of a major storm.

As homeowners in Florida prepare this year, they are advised to have their home inspected to determine ways to better secure their homes and lower their premiums. Making the proper adjustments in advance can make sure everyone has the appropriate home insurance policies for this year’s storm season.

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