For many, a homeowner’s policy is simply a necessary requirement that must be in place due to bank requirements. It’s easy to choose a policy that is the most competitive in terms of price. Once your policy is in place, it’s set it and forget it, right? Wrong. An annual review is essential for every client. Things change, people change, circumstances change. For instance, before 2016, there hasn’t been a major hurricane in Florida since 2005.
This lull in hurricanes caused many homeowners to not take proper action in preparation for hurricanes. Before Hurricane Irma, many homeowners were left scrambling last minute to try to secure flood coverage. In most cases, flood coverage has a waiting period in which the policy takes 30 days to come into effect. However, it’s rare that we ever hear of a named storm or hurricane more than 30 days prior to it touching down. Even with a copious amount of time to prepare for the storm, most companies will put a binding restriction in place, stopping all policies from being written until the restriction is lifted.
If you happen to live near a coastal area, and you do not have flood insurance, we urge you to meet with us to discuss your options moving forward. Flood insurance has proven to be critical in many parts of the country that aren’t regularly known as being susceptible to floods. From 2015 to 2016, there was a decrease in the number of policies in force with FEMA. Yet, 2017 was one of the highest amounts of loss dollars ever paid. Be proactive, not reactive.