RICHMOND — Hurricane season is right around the corner. In conjunction with National Hurricane Preparedness Week May 24-30, the State Corporation Commission’s Bureau of Insurance encourages Virginians to consider their insurance options before the winds and rains arrive. Once a hurricane develops in the Atlantic, it will be difficult to find an insurance company willing to write related coverage until the storm threat passes.

Hurricane season runs from June 1 through November 30 each year. Many Virginians have experienced first-hand the devastating impact of these storms. No matter where you live in Virginia, hurricanes and their resulting flooding can threaten lives and property. History has shown that flooding is the most costly natural disaster in the United States, causing extensive damage to homes, businesses, and belongings.

"Take steps now to protect yourself financially by ensuring you have the insurance coverage you need in the event of a disaster. The time to review and update your insurance coverage is before the first hurricane begins to brew," said Virginia Insurance Commissioner Alfred W. Gross. "Review your existing insurance policy carefully and make sure you understand what it does and does not cover. Know your policy limits, deductibles, exclusions, and requirements for filing an insurance claim. Contact your insurance agent or company or the Bureau of Insurance if you have questions," he said.

The Bureau encourages policyholders to ask their insurance company or agent if their homeowner’s policy contains a special deductible for wind or hurricane losses. Some insurance companies automatically include a wind or hurricane deductible, while others offer this deductible at the policyholder’s option. Remember that the deductible is the amount that you are responsible for paying before the insurance company pays its portion of the claim. Wind or hurricane deductibles may be written as a flat amount, such as $1,000. Or, they can be applied to the loss as a percentage of the insurance coverage on the dwelling. For example: assume a hurricane causes damage amounting to $3,000 and the dwelling is insured for $100,000. If the policy has a two-percent hurricane deductible, the insured would pay $2,000 and the insurance company would pay $1,000.

Most hurricane damage comes from flooding, not high winds. Homeowners insurance policies issued in Virginia generally do not provide coverage for damage to your home and belongings due to floods. However, the federal government does sell insurance for direct flood and flood-related damage to residents of eligible communities through its National Flood Insurance Program (NFIP). Keep in mind that there is a waiting period for flood insurance policies to take effect. For more information on this program, contact your insurance agent or the NFIP at 1-888- 379-9531 or visit www.floodsmart.gov/floodsmart/. Also, be sure to find out whether your flood policy provides coverage for your contents.

Policyholders may also want to consider the following:

• Does your insurance pay replacement costs, or actual cash value for a covered loss?
• Are contents of your home covered in the event of a hurricane? Mortgage lenders only require insurance coverage on the structure itself, but coverage for contents is also available. Homeowners’ policies generally cover contents up to specified limits.
• Are automobiles and other vehicles covered in the event of a hurricane or other windstorm?
• Does your homeowners’ policy provide any coverage for costs to remove debris?

Advance preparation is the key to weathering a hurricane or other disaster. Know what to do if a disaster strikes your property, and ask your insurance agent or company how you can reduce the severity of a loss. If you must evacuate, know the name of your insurer(s) and take your homeowners, auto, and other insurance policies with you. They will contain your policy numbers and the phone numbers of your insurance companies in case you have questions or need to file a claim.

The Bureau encourages policyholders to prepare a complete inventory of their personal property ahead of time including serial numbers, photographs, and videotapes. Keep this inventory in a safe place, and take it with you if you evacuate. If a hurricane damages your property, make any necessary emergency repairs and take reasonable steps to protect your property from further damage. Make a list of all damage to the house and its contents, and include photographs, notes, and repair-related receipts.

The Bureau of Insurance offers free consumer guides for homeowners and commercial property owners with information about what to do when a disaster strikes. These guides deal specifically with insurance-related disaster recovery issues and provide answers to the most commonly asked questions about settling disaster-related insurance problems. These and many other consumer insurance guides are available on the Bureau’s website at www.scc.virginia.gov/division/boi.

The Bureau also has specially trained staff that can assist consumers with their insurance-related questions and concerns. For more information, contact the Bureau of Insurance Property and Casualty Division toll-free at 1-877-310-6560 or in Richmond at (804) 371-9185. Consumers who are hearing or speech impaired may call through the SCC’s Telecommunications Device for the Deaf and hard of hearing (TDD) at (804) 371-9206.

The SCC is located in the Tyler Building at 1300 East Main Street in downtown Richmond. The mailing address for the Bureau of Insurance is P.O. Box 1157, Richmond, Virginia 23218.

###