We are in the first innings of hurricane season so I thought it wise to help you plan from a financial perspective. After the storms of 2022 and 2024, all Florida homeowners now know that having damage from a hurricane is only the beginning of the stress. Over the weekend I saw this news story and it inspired this blog.
I’ll cover the horror first then the hacks. The last hack is something you’ve never heard of before:
Unpaid Claims: Did you know that some Florida insurers still have unpaid claims nearly 3 years after Hurricane Ian. What happens if your bill is unpaid after 3 weeks? You get cancelled. Doesn’t seem fair.
High Deductibles: Remember, hurricane deductibles are separate from standard deductibles and apply to damage caused by named hurricanes. They are typically a percentage of the dwelling's insured value (e.g., 2%, 5%, or 10%). Do you have that amount in your emergency fund?
I assumed the rising costs were a result of insurance companies struggling to make ends meet. I was wrong. In 2023, one Florida homeowners company recorded a staggering $740 million profit, increasing their company reserves to over $5 billion, while denying 50% of their claims. After making $740 million in 2023, they raised rates 14% for 2024.
Predatory Contractors: High deductibles, complicated claims process, and long waits for that precious check. And just when things are looking up along come the predatory contractors. There’s a fog that follows a hurricane, not literally, but mentally. And in that chaos good and bad contractors start knocking on doors. How do you tell the good guys from the bad guys?
And Now for the hurricane hacks:
Invest in Preparedness: There are things you can buy now to prepare for the storm. Water, first aid kits and batteries will keep until November 30. Also, you can purchase power sources that can power as little as your refrigerator or your whole home. Obviously, we can’t all afford a whole-home diesel generator. But there are levels below that might work as well. Consider pricing portable generators, solar-powered battery packs and portable power stations.
Talk to Your Insurance Person: Typically, we look at homeowner’s insurance as a commodity, looking for the lowest price since it’s all the same. That’s not true. My guy helped me before and after the last hurricane. He went to my house, took pictures and helped me find a good contractor. That’s rare.
Get a Roof Roof: One of the biggest issues, is navigating the roof replacement experience after a hurricane. Membership in Roof Roof gets you a team of people to walk you through the claims process from beginning to end. They don’t work for the insurance company, they work for you. They’ve done this before and have a list of contractors they can vouch for. What intrigues me is that they know the tricks and tips to make things go faster and cost less. I haven’t joined yet, but it’s worth a look at www.getroofroof.com