It’s that time of the year again when memories of Hurricane Ivan resurface, and our focus shifts towards disaster preparedness. In this regard, there are a number of things that you can do in order to ensure that you are able to withstand the effects of a hurricane, and to bounce back in its aftermath.
The most important thing is that you need to ensure that your home is prepared to face a hurricane. Having done this, you need to make sure that you are properly insured. Cayman First offers a range of policies which can provide you with the ability to recover from hurricane damage. We are backed by the largest and strongest reinsurers in the world and are rated A- Excellent by AM Best.
There are 2 important things to remember about insurance.
The first is that you will need to insure for the full replacement value of your home and contents. If you do not, you run the risk of being adversely affected by your underinsurance, in a manner which can significantly reduce the amount that you are able to claim under your policy.
If you are insuring a building, it should be insured for the reconstruction cost, not the market value. Market value includes the cost of the land and the inherent value of the location. The construction cost will be more or less the same regardless of the location, other than location specific elements such as piling or dredging. For best protection, we advise you to get a professional valuation. If have a valuation which is more than one year old, we can help you to arrive at an approximate current value until such time as you are able to get a new valuation.
When insuring contents, you should do a room by room review and estimate the cost to replace all of the items in each room.
The second thing is that your policy will have a deductible which is typically between 3% and 5% of your sum insured. This means that any amount which falls within that figure is not recoverable under your insurance policy. So if your building is correctly insured for $300,000 for example, and you have a 3% deductible, you will know that you have to absorb the first $9,000 of any claim and should make provisions for this.
For a more detailed explanation of both of these, call us at Cayman First. We will be only too happy to explain them to you. We are Cayman First. First in Insurance. Today. Tomorrow.