Preparing for Hurricane Season: Protecting Your Home and Finances

With the 2024 hurricane season now in full swing, we have already seen the effects of wind, rain, flying debris, and loss of power. The National Oceanic and Atmospheric Administration (NOAA) predicts an above-average hurricane/storm season this year. It is estimated that just one inch of floodwater in a home can cause up to $25,000 in damage, so it is essential that you protect your home and other assets—as well as yourself—from severe weather situations.

Preparing Prior to a Storm

When an oncoming storm or hurricane is predicted, it is vital to prepare for it ahead of time. This can include boarding up windows and doors (or using hurricane shutters, if applicable). In addition, moving outdoor furniture and other items inside can help to prevent them from being picked up by the wind and possibly causing additional damage to your home or your neighbors’ homes.

That said, let’s not forget about how to protect yourself financially with the proper insurance coverage. Regular homeowner’s insurance may cover some types of hurricane damage, but the extent of this protection will depend on the actual policy.

For example, standard home insurance policies typically do not cover flooding or rising water, so you may want to consider purchasing a separate flood insurance policy that covers the primary types of hurricane-related flooding such as excessive rainfall, flash floods, and overflowing bodies of water.

FEMA (the Federal Emergency Management Agency) offers a National Flood Insurance Program (NFIP) through more than 50 insurance companies, as well as NFIP Direct. Keep in mind, though, that FEMA’s flood insurance premiums may cost more than private flood insurance.

The NFIP coverage may also be somewhat limited, as it doesn’t generally cover the cost of improvements, such as finished walls and floors. And the wait time for reimbursement could be longer than that of a private flood insurance plan. A natural question would be whether you can buy an additional flood policy for more coverage. The answer is no, but there may be exceptions. To learn more about NFIP coverage, visit floodsmart.gov/flood-insurance-provider.

If you rent your home, the property owner or management company will typically carry insurance on the property. But you are still responsible for having renter’s coverage that protects your personal items like furniture and clothing. These policies are typically very affordable and can be well worth the premium cost if you must file a claim for damages.

It is also recommended that you take pictures of items in and around your home. These shouldn’t just include higher-priced items like furniture and appliances, but also clothing, electronics, and other things that may have to be replaced in the event of storm damage. Having pictures of your pets is also recommended in case they become lost.

Further, having certain documents on hand—and kept in a safe, dry location—is also helpful. These should include identification for yourself and anyone you take care of, a list of your medications, vaccine records, and emergency contact information.

Dealing with Storm Damage

Because there is no way to fully prevent the wrath of a severe storm or hurricane, if your home and/or possessions become damaged, there are some key steps to take—starting with taking an inventory of the damage.

If you are covered by insurance, you will want to take proactive measures so that you know what to anticipate in various situations. For example, if a neighbor’s tree falls on your house, who is responsible for paying the cost of repairs and/or replacement of damaged items? The same holds true if one of your trees falls and causes damage to a neighbor’s home or yard. Speak with your neighbors about their tree if there may be a potential for the tree to fall over onto your property and cause damages. This is a preventative that can help save you headache and money later, should something happen. If your neighbor is not cooperative, then consult with your property/casualty insurance company about other steps to take in order to protect yourself and your property. Perhaps putting your concerns in writing (and giving them fair warning) can help protect you if your neighbor’s tree does fall on you. Otherwise, you may have to foot the bill on your own.

Taking pictures of any storm damage can be extremely helpful if you file an insurance claim. These photos can even be compared with any of the “before” pictures that you have on file. You should also include evidence of other items, too, such as any food that has spoiled in your refrigerator or freezer due to power outages.

In some cases, it may seem unwise to file an insurance claim out of concern for future increased premiums, or even being dropped from your coverage altogether. Even if you pay out-of-pocket for such damages, though, the claims that your neighbor(s) file could force your entire area’s premiums to go up anyway. With that in mind, make sure that you obtain as much information as possible from your insurer regarding no-fault claims.

Preparing for Future Storms

Even if there are no storms currently on the horizon, taking precautions ahead of time can pay off when the time comes. This can include stocking up on some key necessities.

Important items to have on hand should ideally include:

• Generator – The power grids are becoming more fragile with each passing day, so planning for a power outage is recommended—whether it is due to severe weather or some other reason. Depending on the type of generator you install for your home, it could be a positive selling point when you decide to sell in the future.
• Gas stove – If you have an electric stove, it would make sense to consider getting a gas stove. If you lose power, at least you will have the ability to cook and boil water for consumption.
• Flashlights – Although many people have access to the flashlight on their phone, using it can quickly drain your phone’s battery. So having one or more battery-operated flashlights on hand is recommended—or even a wind-up emergency radio with a built-in flashlight.
• Water and non-perishable food – With the potential for long-term power outages that can cause most grocery stores and restaurants to close, having plenty of bottled water and non-perishable food on hand, especially during storm season, is another necessity.
• Portable home batteries – Portable batteries can be helpful for running one or more appliances. This can help with cooking, as well as the ability to run heat or air conditioning, even if just for a short period of time.

As with any other emergency, it is critical that you have a plan of action in place. For instance, know where to go if your home becomes uninhabitable. In this case, be sure that you research various establishments to make sure that pets, special needs, and other situations are accounted for. And always have a full tank of gas.

Are You Protected from Damage?

While you can’t control the weather, there are strategies that you can put in place to help protect yourself, your home, and your assets from future natural disasters like floods, storms, and hurricanes.

If you need assistance in setting up an emergency fund and/or choosing the right insurance coverage, contact a financial planning professional who can walk you through the process and narrow down the best options for you and your specific needs.

Hurricane season is not something to take lightly, as we have experienced. The damage caused by these storms can be catastrophic, but with the right preparation, you can significantly reduce the impact. Take proactive steps now to protect yourself.

By staying informed and ready, you can face the storm season with greater confidence and peace of mind.