- Division of Insurance
While Massachusetts has been spared the worst of storms in recent years, weather forecasts predict that 2024 could be a very active hurricane season. The Division of Insurance (DOI) encourages Massachusetts residents to take time this month to take actions that could protect their property before potentially severe weather hits.
Storm Events
Residents should review their insurance policies with their agent or insurance company to understand the features of their coverage, including coverage limits, to ensure they have adequate protection. Since labor costs and construction materials have risen, you may need to raise your coverage (Coverage A covers your main residence) to ensure you can rebuild at today’s prices. Please be aware that if you have made additions to your home or have remodeled rooms, this can add value to your home and may increase rebuilding costs as well.
In addition, consumers should make sure that they fully understand their policy’s deductibles (the amount the policyholder pays before the insurance company starts paying its share of the loss). Some insurance policies have a special deductible for losses caused by named storms, like hurricanes, or for wind. The insurer applies this deductible only when a named storm or wind causes damage.
This deductible is separate from the normal deductible in a homeowners policy and is usually a percentage of the home’s value. Percentages generally range from 1% to 5% of the value of the insured home. For example, if a homeowners policy has a 5% named storm deductible on a $300,000 house, the policyholder would be responsible for paying $15,000 out of pocket. Named storm deductibles can also be a fixed dollar amount. You will want to learn if your deductible for named storms is per event, per season, or per calendar year.
Floods
The DOI reminds residents that damage to their home from flooding is not included in a standard home insurance policy; residents are encouraged to purchase a separate flood insurance policy which can be purchased from the National Flood Insurance Program, or from a private insurer (the DOI has a list on its website.)
Damage to automobiles is not covered under homeowners or flood insurance. Your personal auto policy will likely cover flood damage to your vehicle if you have purchased comprehensive coverage under your personal auto policy.
Taking Stock
When the weather is calm, you should take a walk around your house and property and take stock of its condition. You should consider whether the roof in good condition; whether there are any tree branches that could fall and cause damage during a storm; or whether gutters clear from debris. You should consider moving loose items, like lawn furniture, inside ahead of severe weather as those items can cause damage to the home.
The Insurance Institute for Business & Home Safety (IBHS) and the Federal Alliance for Safe Homes (FLASH) have best practices you can follow to prevent damage during severe weather. The Massachusetts sales tax weekend could be a good time to purchase some items to help fortify your home. It can also be beneficial to contact your insurer to see if there are discounts offered for any mitigation efforts taken to improve your home. Information about making your home more resilient can be found on the DOI’s website: Resilient Homes | Mass.gov
Finally, residents should also make or update their home inventory. Creating a home inventory is simply making a list of all your belongings (details like brand names and pictures can be helpful) so that, should you need to file a claim, you can reference what may have been destroyed or damaged. You may wish to download the free Home Inventory App from the National Association of Insurance Commissioners (NAIC).
More information about homeowners and flood insurance can be found on the DOI website at www.mass.gov/doi.
