RICHMOND-- Hurricane season is just around the corner. In conjunction with National Hurricane Preparedness Week May 21-27, 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. No matter where you live in Virginia, hurricanes and their resulting flooding can threaten lives and property. Virginians have been reminded repeatedly in recent years just how devastating these storms can be in terms of deaths, injuries and damage to homes, businesses and other property.

       “Protect yourself, not only physically, but financially. Plan ahead and know what to do if a disaster strikes. Make sure you have the proper insurance coverage before the first hurricane begins to brew,” said Virginia Insurance Commissioner Alfred W. Gross. “Review your existing insurance policy carefully so you know what it does and does not cover. Contact your insurance agent or company or the Bureau of Insurance if you have any questions.”

       The Bureau encourages policyholders to check with their insurance company or agent to find out 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 may 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. It is important to understand how wind and hurricane deductibles work. The amounts of these deductibles are on the rise in some areas, and may vary depending upon where you live, so the Bureau suggests that you shop around and compare prices and terms.

       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?
• Are vehicles covered in the event of a hurricane or other windstorm?
• Does your homeowners’ policy provide any coverage for costs to remove debris?

       Keep in mind that 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 1-888-225-5356 or visit www.floodsmart.gov. Be sure to find out whether your flood policy provides coverage for your contents.

       Advance preparation is the key. Ask your insurance agent or company how you can reduce the severity of a loss, should a hurricane strike. If you must evacuate, know the name of your insurance company and take your policy with you. It will contain your policy number and the phone number of your insurance company in case you have questions or need to file a claim.

       Prepare a complete inventory of your 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 your property is damaged by a hurricane, 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 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 who 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 Bureau’s mailing address is P. O. Box 1157, Richmond, Virginia 23218.

For additional information, contact ken.schrad@scc.virginia.gov

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