Turner and Associates Insurance
Over the last few years, the Golden Isles has had its fair share of storms. We took some high winds from Hermine, a beating from Matthew, and wind and waves from Irma. We even had an ice storm in early 2018 that caused some damage and a power outage.
The Weather Channel, local news anchors, and all of your neighbors will tell you to buy a generator, have plenty of water, and stock up on supplies to prepare for hurricane season. But I’m here to tell you that the time to prepare for hurricanes isn’t June 1st. It isn’t when you see a hurricane out in the Atlantic. And it isn’t when the authorities tell you to evacuate. The best time to prepare for hurricanes is when you purchase your homeowners insurance! When a hurricane has its sights set on St. Simons and the Golden Isles, there is nothing you can do to stop it, but if you have done your due diligence and purchased a good homeowners policy, your home can be replaced or any damage repaired.
When purchasing homeowners insurance there are three main things you should consider when comparing quotes and companies:
First, you want to choose a company that has an A rating by A.M. Best. A.M. Best is the only global credit rating agency with a unique focus on the insurance industry. Best's Credit Ratings, which are issued through A.M. Best Rating Services, Inc., are a recognized indicator of insurer financial strength and creditworthiness. This is especially important after a catastrophe. You want to know that the company who writes your insurance has the financial stability to pay your claim. You can search companies and learn more about the ratings at ambest.com.
Secondly, you should make sure your policy covers wind damage. Some companies exclude wind coverage in coastal Georgia. Hopefully your policy includes wind coverage and you probably have a special wind deductible. There are 3 different types of wind deductibles: wind/hail, named storm, and hurricane. The broadest wind-related deductible is the wind/hail deductible which is assessed if you have damage from any type of wind or hail. A named storm deductible is only assessed if you have damage resulting from a storm that has been named by the National Weather Service. And finally, the hurricane deductible is assessed only if damage is the result of a storm classified as a hurricane when it makes landfall. Knowing what type of deductible is on your homeowners policy will help you make informed decisions about whether to file a claim after your house has sustained damage.
Hurricane Preparedness
Currently in coastal Georgia, most properties qualify for a two percent wind-related deductible. This means that when you have a loss from wind, your deductible is 2% of your dwelling (or building) amount. For example, if your home is insured for $500,000 then it carries a $10,000 wind related deductible. Many people that I talk to have the misconception that the 2% deductible means that the deductible is 2% of the loss, i.e. “I have a $10,000 loss and then my deductible should be 2% of the loss, which is $200.” That is simply not the case and can lead to frustration when misunderstood.
Last, but not least, make certain that you have insured the home to the full replacement cost value. Every day when speaking to potential clients, when asked what they think the replacement cost of their home is, the first thing many people say is, “I paid X for it.” The purchase price of a house is its market value, which is a separate valuation from replacement cost. Maybe when you bought your house, the sellers were highly motivated, and you got a good deal. That doesn’t change the cost of rebuilding or replacing the house after a loss. Also consider that the land value, which was part of the purchase price, cannot be insured.
Now imagine a scenario in which we have just been hit by a major storm: countless homes have sustained damage and many property owners will be looking to rebuild or repair at the same time. A limited labor force and limited building materials coupled with high demand means that the cost of rebuilding will be higher than usual. A house that cost $500,000 to build before the storm might cost $600,000 or $700,000 to replace after a hurricane. It is not only important to insure to replacement value but to have a conversation with your agent about extended replacement cost. Extended replacement cost coverage gives you additional coverage beyond the dwelling amount. Having an open discussion with your agent about this optional coverage endorsement could make the difference between being able to rebuild your home or not.
By far the best way to prepare for a hurricane is to buy your homeowners insurance from the experts. Turner & Associates Insurance is a local agency with an office in Brunswick that has been serving the Golden Isles community since 1950. Our agents are knowledgeable, trustworthy, and have experience dealing with coastal markets. We can advise you on the best companies and coverages to protect your assets. We would be happy to review your current coverage or quotes and tell you the advantages and disadvantages of each. The staff at Turner & Associates provides expert advice and you will find our commitment to our customers second-to-none. Give us a call at 912.265.2840 or visit our website at turn2us.com for more information about our services.
Andrew Turner graduated from Georgia Southern University in 2009 with a Bachelor of Business
Andrew Turner
Administration in Management. He then joined the Turner & Associates team and continued his education by obtaining his Georgia Property & Casualty Insurance License and his Personal Lines Coverage Specialist designation. Andrew works in personal lines helping his customers reduce their cost of risk. Andrew is a graduate of Leadership Glynn, and a former board member of the Young Agents of Georgia.
