Hurricane season is one of the worst times of year for residents of Louisiana. It can be a hassle for some and a devastating occurrence for others. However, a good homeowners insurance plan can make or break a homeowner’s ability to repair or rebuild their home when disaster strikes.
Home Damage Statistics for Louisiana
According to data compiled by the Louisiana Department of Insurance (LDI), Hurricane Ida was one of the most expensive hurricanes in recent years to hit Louisiana residents:
- 339,193 residential property claims were reported as of December 31, 2021.
- Total reported cost of claims totaled over $4.6 billion.
- Of the claims reported, 58% of claims were closed with payment.
Hurricanes can cost residents billions and remain open for many months after hurricane season ends.
Check your Current Policy
Homeowners should always keep updated on their policy and any new offers or services their insurance company provides. Although typical policies rarely change from year to year, any major renovations on a home or changes in occupancy may impact monthly premiums or the type of coverage offered.
A particular aspect of a home’s construction or location can also provide a homeowner with specific discounts. For example, additions like hip-shaped roofs (roofs with four or more slopes to repel high winds), shock-resistant coverings over windows, leak detection equipment, and security systems can decrease monthly premiums.
Understanding Hurricane Deductibles
Homeowners living in coastal states will have traditional insurance deductibles for property damage claims and most likely have deductibles for hurricane damage (this type of deductible is a requirement in Louisiana).
Unlike an “All Other Perils” (AOP) deductible, which covers various property damage, hurricane deductibles cover severe damage caused by hurricanes. Hurricane deductibles can range from two to five percent of a home’s value, which means if a homeowner files a homeowner’s insurance claim after a hurricane, they will have to pay for at least two percent of their home’s value in damages before the insurance company pays for the rest.
This type of deductible may seem like a lot for most homeowners. Still, because some hurricanes can completely demolish a home or render the dwelling uninhabitable for months, insurance companies will have to pay more to rebuild or repair the house.
Purchasing Flood Insurance
Most insurance policies cover extensive damage from many artificial or natural events. For example, most policies cover damage caused by wind, falling debris, fire, water, burglary, automotive accidents, and unforeseen defects. However, unless a homeowner lives in an area prone to flooding, most homeowners do not think about flood insurance until it is too late.
Unfortunately, most typical homeowners’ insurance policies do not cover damage caused by extensive flooding from weather events. Nowadays, real estate agents will provide reports of the likelihood of flooding damage to a property, or national databases can determine the chance of a property experiencing flooding. Even if a property is not necessarily prone to flooding, hurricane seasons put many “safe” homes at risk of even minor flooding damage.
Thus, homeowners should talk to their insurance adjusters about flood insurance rates and consider purchasing additional coverage. Most flood insurance policies take 30 days to commence once purchased, so homeowners thinking about buying flood insurance should not wait.
Inventory Valuable Possessions
Besides structural damage, one of the costliest results of hurricanes is damage to personal possessions. Because many homeowners’ insurance policies cover the damage costs to personal property, having an updated inventory of the personal items can save homeowners time and money when filing claims.
Because it is hard always to know what an insurance company is willing to compensate a policyholder, it is best to keep detailed records of some of a home’s most essential items. For example, homeowners may want to keep documents and photos of home appliances, workout equipment, entertainment devices, furniture, jewelry and accessories, and anything else of value.
Keeping Your Paperwork Secure
Because hurricanes can cause catastrophic damage, homeowners should always keep paper and digital copies of the necessary documentation, including homeowner’s insurance policy information. Although losing paperwork will not void coverage, having it on hand can get a traditionally long process started quickly.
Understanding the Claims Process
When filing a claim with an insurance provider, homeowners should have a general idea of the steps in the process once they have found coverage that works for their specific needs.
-
Contacting the Insurance Provider
In the aftermath of a hurricane, a homeowner should contact their insurance company as soon as possible. Likely, insurance providers with policies throughout a region that recently experienced a hurricane will be inundated with calls for assistance. The sooner a homeowner files a claim, the sooner the damage to their home will be addressed. Homeowners may also need to contact the flood insurance broker that sold them a flood insurance policy if the policy is not connected with their homeowner’s insurance.
-
Documenting Damage and Loss
At this point, it is time for a homeowner to assess the damage and document loss. Homeowners that proactively cataloged their possessions will have an advantage in determining the total monetary loss of their property. Property owners should take pictures of all structural and property damage and take detailed notes of damage. Some insurance providers or third-party companies offer easy-to-use web applications to inventory all of a homeowner’s personal belongings.
-
Contacting Emergency Services
Homeowners should be vigilant of their home’s surroundings. From downed power lines that could cause fires and electrocution to falling trees and broken pavement, these dangers can cause further property damage and hurt nearby residents. Contacting local emergency services and utility providers of these dangers can save a homeowner’s property and keep themselves, their family, neighbors, and emergency services personnel safe.
-
Mitigate Damage When Possible
Many policies require homeowners to identify damage on a property and mitigate further damage by addressing the issue. In some cases, after a hurricane, a home can be so severely damaged or demolished that mitigation efforts may cause harm to the homeowner. However, if the damage is minimal, a homeowner should proactively mitigate further damage until repairs can be made.
