Glenn Ferguson
06-11-07, - 08:37 AM
"Tomorrow hopes we have learned something from yesterday." - John Wayne
The 2007 hurricane season is here and already Tropical Storm Barry has impacted the western coast of Florida. It is expected to be another active season with the experts predicting that there is a possibility of at least 3 to 5 named systems could escalate to hurricanes of Category 3 strength or higher.
Therefore, I encourage you to learn from our recent experiences in Grand Bahama and prepare now to ensure that you are adequately insured against the losses that can be caused by hurricanes.
Let's say the worst happens, a hurricane sends a tree smashing down onto your roof or your roof is blown off and your house is flooded. How would you recover from this disaster? The answer is Property insurance. Whether it's to repair damages or replace what you've lost. So, your ability to recover from any disasters is heavily dependent on your insurance coverage.
Apart from not insuring your home at all, one of the most common mistakes you can make with your homeowners insurance is to undervalue your home and possessions. It is estimated that 70 percent of homes in the Bahamas are underinsured - meaning that 7 out of 10 of you do not have your home insured for its full replacement cost.
The full replacement cost is how much it would cost to rebuild the house on the land it sits on now — not the value for which you could sell your house today. Get yourself an appraisal just to ensure that you know and understand what this value is.
It is also not the amount you current owe the bank. It is always surprising to see person who are only concerned about getting coverage to the extent that it covers their loan obligation.
“Recently a gentleman walked into my office wanting to insure a duplex building he owned for $70,000.00. When asked the appraised value of building excluding (no need to insure the land) he said that it was $160,000.00. So why are you wanting insurance for $70,000.00? Oh that’s the amount of the loan I’m getting from the bank.”
Unfortunately no one, not even the bank has adequate protection in this instance.
Further, many homeowners do not report or insure home improvements. Here again not insuring our property for its full replacement value. You should always report any home improvements to your agent or insurance company’s representative as soon as they are completed so that you policy can be adjusted.
Another common mistake made is not insuring the contents of your home. If you experience any loss to items inside of your home they are not covered by the building insurance. This is why it's very important to insure your contents and to keep an up-to-date home inventory list so that you can adjust your coverage to protect these items as needed. Our article “Getting Your Home Content Right!” is an invaluable resource you can use to prepare.
So take the time to prepare by checking with your insurance carrier or agent now rather than later and make sure you not making any of these mistakes this hurricane season.
"You cannot add to the peace and good will of the world if you fail to create an atmosphere of peace where you live." - Glenn
The 2007 hurricane season is here and already Tropical Storm Barry has impacted the western coast of Florida. It is expected to be another active season with the experts predicting that there is a possibility of at least 3 to 5 named systems could escalate to hurricanes of Category 3 strength or higher.
Therefore, I encourage you to learn from our recent experiences in Grand Bahama and prepare now to ensure that you are adequately insured against the losses that can be caused by hurricanes.
Let's say the worst happens, a hurricane sends a tree smashing down onto your roof or your roof is blown off and your house is flooded. How would you recover from this disaster? The answer is Property insurance. Whether it's to repair damages or replace what you've lost. So, your ability to recover from any disasters is heavily dependent on your insurance coverage.
Apart from not insuring your home at all, one of the most common mistakes you can make with your homeowners insurance is to undervalue your home and possessions. It is estimated that 70 percent of homes in the Bahamas are underinsured - meaning that 7 out of 10 of you do not have your home insured for its full replacement cost.
The full replacement cost is how much it would cost to rebuild the house on the land it sits on now — not the value for which you could sell your house today. Get yourself an appraisal just to ensure that you know and understand what this value is.
It is also not the amount you current owe the bank. It is always surprising to see person who are only concerned about getting coverage to the extent that it covers their loan obligation.
“Recently a gentleman walked into my office wanting to insure a duplex building he owned for $70,000.00. When asked the appraised value of building excluding (no need to insure the land) he said that it was $160,000.00. So why are you wanting insurance for $70,000.00? Oh that’s the amount of the loan I’m getting from the bank.”
Unfortunately no one, not even the bank has adequate protection in this instance.
Further, many homeowners do not report or insure home improvements. Here again not insuring our property for its full replacement value. You should always report any home improvements to your agent or insurance company’s representative as soon as they are completed so that you policy can be adjusted.
Another common mistake made is not insuring the contents of your home. If you experience any loss to items inside of your home they are not covered by the building insurance. This is why it's very important to insure your contents and to keep an up-to-date home inventory list so that you can adjust your coverage to protect these items as needed. Our article “Getting Your Home Content Right!” is an invaluable resource you can use to prepare.
So take the time to prepare by checking with your insurance carrier or agent now rather than later and make sure you not making any of these mistakes this hurricane season.
"You cannot add to the peace and good will of the world if you fail to create an atmosphere of peace where you live." - Glenn