Commentary: Important insurance lessons for NH from Hurricane Ian
Like all Americans, our best wishes are with Floridians who continue to grapple with thetragic destruction brought by Hurricane Ian.
Beyond the human cost, the number of insurance claims filed continues to rise, toppingmore than 622,000 claims reported as of last week, and estimated insured losses stand atmore than $8.7 billion, according to our colleagues at the Florida Office of InsuranceRegulation. By some estimates, Hurricane Ian is projected to cause more than $67 billion ininsured losses. Without question, Florida’s property and casualty insurance market willtake several years to recover.
However, while Hurricane Ian’s physical impact might be limited to Florida and othersouthern states, there are large and critically important lessons that Granite Staters shouldnote as it relates to insurance.
Tip 1: This point may sound the simplest, but it is often the one most missed and truly themost important. Take the time to read and understand your insurance coverage whenbuying or renewing a policy. Start by making a list of the valuable assets in and aroundyour home like large appliances, jewelry, fences, pools and patios. Many may assume all ofthese items are protected under their homeowners coverage, but some may not be covered.Personally, we have received multiple inquiries from friends and family who own propertyin Florida who are reading their policies for the first time. They are understandably undergreat duress — in some cases having lost everything — and trying to understand what is andis not covered and how to go about the claims process.
Dedicating just a few minutes to read your policies and work with your insurance agent toanswer any questions and help you to understand what your coverage provides and what itdoes not, can inform decisions about your financial obligations and determining anyadditional protections needed.
It’s also important to understand what exclusions (a loss that your insurance company willnot cover) are outlined in your policy. For instance, be sure to check what weather-relateddamage is or is not covered. In Florida, many residents were shocked to discover that theirhomeowners policy excluded damage from wind or damage to a roof. Similarly,homeowners policies will not provide coverage for flooding caused by natural disasters.Flood coverage for natural disasters is sold as a separate policy. Others found that theirpolicy’s deductibles required them to first pay out out-of-pocket costs that far exceed theirsavings or rainy-day funds.
Tip 2: Ensure that you, your family and/or your business is adequately insured and thatyou are not cutting corners. In too many cases, residents of Florida gambled and wentwithout flood insurance. When Hurricane Ian delivered record storm surges, that gambleled to tragedy.
Paying for adequate insurance can feel burdensome, but the cost of not having the neededcoverage is simply not worth the risk.
Other residents had a basic homeowners policy but lacked coverage for exterior featuresnot attached to the home, such as decks, screened-in patios, fences, sheds, porches ordocks. When purchasing a policy, be sure that you extend coverage or get a separate policyto ensure those pricey structures are paid for if damaged.
Do not overlook your auto policies, pollution policies and — for those facing potential third-party claims — liability policies. It is crucial to obtain, review and evaluate all potentially applicable insurance policies related to you, your family or your business.
Tip 3: Have a plan in place to properly file a claim prior to any incident. Calling yourinsurance company may not be the first thing you think to do after a fire, flood, or otherunfortunate incident. However, it's important to do so quickly, both for safety reasons andto get started on the claim process.
Be sure to document all damage and anything else that will form the basis of the claim.Take several photos and/or videos detailing damage. This is especially important ifimmediate repairs are necessary to make the impacted area safe and habitable. Compile alist of damaged or destroyed possessions, along with their approximate value. This will be alot faster if you've made a detailed home inventory of your possessions ahead of time.
The coming months will be a challenge for southwest Florida; we hope that out of theirstruggle will come lessons that can help Granite Staters be more comfortable with theterms of their insurance and ensure they are properly protected. Insurance is not asubstitute for preparedness.
Christopher Nicolopoulos of Bow is the commissioner of the New Hampshire Department ofInsurance, and D.J. Bettencourt of Salem is the deputy commissioner.
This article originally appeared on Portsmouth Herald: Commentary: Important insurance lessons for NH from Hurricane Ian
