Check #1: Know Your Perils – Does “Hurricane Cover” Mean EVERYTHING?
You see “Hurricane Coverage” on your policy, and you breathe a sigh of relief. But hold on a minute, It’s vital to understand exactly what perils (causes of loss) related to a hurricane are covered. Have you completed your Hurricane Preparedness Trinidad?
- Windstorm Damage: This is the most obvious – damage from the high winds themselves (roof damage, broken windows, structural issues). Most standard home policies with hurricane endorsements will cover this.
- Flood Damage:This is a big one to watch! Standard home insurance policies in many regions, including T&T, often exclude or limit flood damage caused by storm surge, overflowing rivers, or heavy rainfall accompanying a hurricane. You might need a separate flood insurance policy or a specific endorsement.
- TrueHaven Tip: “Ask your advisor explicitly: ‘Am I covered for flooding caused by heavy rains during a hurricane, or just wind damage?’ The answer is critical, especially if you live in a flood-prone area.”
- Rainwater Intrusion: Damage from rain entering through a wind-damaged roof or window is usually covered. But damage from rain seeping in due to poor maintenance might not be.
- Must-Have Knowledge: Don’t assume “all-inclusive.” Review the “Perils Insured Against” and “Exclusions” sections of your policy document. If it’s clear as mud, that’s what TrueHaven Advisory is here for – to translate it for you!
Check #2: Sums Insured – Are You Underestimating Your Rebuild Cost? (This Could ‘Brek Your Pocket!’)
Your policy states a “Sum Insured” for your building. This is the maximum amount your insurer will pay to rebuild or repair your home. But is it enough?
- Market Value vs. Rebuild Cost: The price you could sell your house for (market value) is NOT the same as what it would cost to rebuild it from the ground up. Rebuild costs include materials, labour, debris removal, and architect fees, all of which can skyrocket after a major event due to demand.
- Inflation & Rising Costs: Has your sum insured kept pace with the rising cost of construction materials and labour in Trinidad & Tobago over the last few years? An outdated sum insured means you could be seriously underinsured.
- Improvements & Renovations: Did you add a new room, upgrade your kitchen, or tile the gallery? If you didn’t inform your insurer and increase your sum insured, these improvements might not be fully covered.
Jagdish’s Insight: “Many homeowners unknowingly underinsure their property by 20% or more. Imagine needing $800,000 TT to rebuild, but your policy only covers $600,000 TT. That $200,000 TT shortfall comes straight out of your pocket. It’s a financial blow many families can’t recover from.” (Source: General insurance industry observation on underinsurance).
Action: Review your sum insured annually. Consider getting a professional valuation or using an online rebuild cost calculator (though always cross-reference with local T&T building costs). TrueHaven can help you assess this. Ensure you have done your hurricane preparedness Trinidad.
Check #3: Your Contents – From ‘Good Wares’ to Appliances, Are They Accounted For?
Your home isn’t just the structure; it’s everything inside that makes it your home – furniture, appliances, electronics, clothing, and yes, even your ‘good wares’ you only bring out for special occasions!
- Separate Sum Insured: Most policies have a separate sum insured for “Contents.” Is this figure realistic?
- Inventory is Key: The best way to know is to create a home inventory – a list of your belongings and their estimated replacement cost. Take photos or videos as proof. This is invaluable if you need to make a claim. (There are even apps to help with this!)
- Special Limits: Be aware that policies often have special limits for certain high-value items like jewellery, art, or collectibles unless they are specifically scheduled (listed individually) on your policy.
TrueHaven Tip: “Don’t just guess your contents’ value. A quick walk-through room by room with a notepad or your phone camera can be eye-opening. You probably own more than you think!”
Check #4: The Dreaded Deductible – How Much Will YOU Pay First?
Your deductible (or “excess”) is the amount you have to pay out-of-pocket for each claim before your insurance company starts paying.
- Standard Deductible: For most perils (like fire or theft), this is usually a fixed dollar amount (e.g., $2,500 TT, $5,000 TT).
- Hurricane/Catastrophe Deductible (CRITICAL TO UNDERSTAND): For hurricane, earthquake, or other named catastrophe claims, many policies in regions like ours have a percentage-based deductible, not a fixed dollar amount. This percentage (e.g., 2%, 3%, 5%) is typically applied to your total building sum insured.
Must-Have Knowledge & Example:
“Let’s say your home is insured for $1,000,000 TT, and your hurricane deductible is 2%. If a hurricane causes $100,000 TT in damage, your deductible isn’t a small fixed sum. It’s 2% of $ 1,000,000
20,000 TT!** You pay the first $20,000 TT, and the insurer pays the remaining $80,000 TT. This can be a significant and unexpected out-of-pocket expense if you’re not prepared.” (Source: Common practice in catastrophe-prone regions; verify typical T&T percentages with ATTIC or insurers if possible for even greater accuracy).
Action: Find the deductible section in your policy. Understand if you have a percentage-based deductible for hurricane claims and what that percentage applies to. Ensure you have access to funds to cover this if needed.
Check #5: Alternative Accommodation – Where Will You ‘Lay Yuh Head’ if Your Home is Uninhabitable?
If a hurricane severely damages your home, making it unlivable, where will you and your family stay during repairs? This could take weeks or even months.
- Coverage for Additional Living Expenses (ALE): Many comprehensive home insurance policies include coverage for ALE. This helps pay for reasonable increased living costs, such as:
- Temporary rental accommodation.
- Hotel bills.
- Increased food costs (if you can’t cook at home).
- Limits Apply: This coverage usually has a time limit (e.g., 12 months) and/or a monetary limit (often a percentage of your building sum insured).
TrueHaven Tip: “Check your policy for ‘Alternative Accommodation’ or ‘Loss of Use’ coverage. Understand the limits. This benefit can be a lifeline, preventing you from having to ‘crash by family’ indefinitely or drain your savings on temporary housing during a very stressful time.” (Highlight if Maritime policies generally offer good ALE).
Conclusion: Don’t Wait for the Storm Clouds to Gather
Preparing for hurricane season in Trinidad & Tobago is a shared responsibility. While we can’t control the weather, we can control how well-prepared we are financially. Reviewing your home insurance policy with these five checks in mind is a crucial step.
Don’t leave your biggest asset and your family’s security to chance or assumptions. If any of this sounds confusing, or if you’re unsure about your current coverage, that’s what we’re here for.
Your ‘true haven’ deserves true protection. Contact Jagdish Ramkissoon at TrueHaven Advisory today for a complimentary, no-obligation review of your current home insurance policy. Let’s ensure you have the right coverage in place before you need it. Call us at 678-4825 or visit https://truehavenadvisory.com
You could contact the ODPM (Office of Disaster Preparedness and Management) website for official alerts. For Emergency contact: https://odpm.gov.tt/emergency_contacts-2/
Stay safe, Trinidad & Tobago!