Miami is subject to tropical storms, hurricanes, and a predicted rise in the ocean levels that is continuing. Homeowners may risk having a catastrophic loss, which is not covered by their home insurance if they do not understand the details of their insurance policy.

Here are some tips about what to consider when conducting an insurance review along with your agent at Assure-Us, serving Miami Beach, FL and the Miami metro area.

Understand the Policy Limits

There is an overall policy limit, which should be enough to cover the replacement cost of the entire home if it is completely destroyed. Be aware that rebuilding a home after a wide area has been impacted by a natural disaster is much more expensive due to the high demand for construction services.

In some policies, there may also be sub-limits. A sub-limit creates a limit on the coverage for certain kinds of claims. Be sure to discuss any policy sub-limits with your agent because they are much lower than the total coverage limit.

Understand the Terminology

The meanings of the words and the specific definitions in an insurance policy are critically important. Disputes have come up over the terms used to describe coverage. For example, damage from hurricanes due to high winds is different from damage to a home caused by storm surges.

Evaluate the Financial Strength of the Insurance Underwriter

A natural disaster may cause billions of dollars in insurance claims that might exceed the insurance company’s ability to pay all the claims. Insurance coverage is only as strong as the financial capacity of the insurance underwriter that stands behind the policy.

Summary

Now, more than ever, it is a critical time for homeowners in the Miami metro area to work with their agent at Assure-Us in Miami Beach, FL to make sure their home insurance coverage is adequate.