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 Stories of post-Katrina insurance travails should be cautionary for coastal area
homeowners. Misunderstanding your coverage and definitions of your coverage can
be costly. There are, for example, major differences between “Wind and Hail”
deductibles, and that of a “Named Storm,” states Bill Thomas, president of Carswell Insurance
Services.
For example: say your home is insured for
$300,000. Your roof is damaged by a thunderstorm. If your policy has a Wind and
Hail deductible of 2 percent (the usual), your share of whatever the repair cost
totals will be $6,000 (2 percent of $300,000).
But if you have “Named
Storm” coverage, says Thomas, with a deductible of 2 percent and $1,000 for “All
Other Perils,” your share of the repair will be only $1,000, a savings of
$5,000.”
Of course, if the damage were caused by a tropical
depression named by the National Weather Bureau, there would be no savings. The
2% deductible would apply.
Thomas also points out that, “Flood
insurance is also subject to definitions of cause. Your concerns are damage to
the dwelling as well as damage to its contents.”
Most policies
clearly cover damage caused by a storm ripping off a roof, damaging the
structure and soaking the contents. But what if the storm leaves the roof intact
but causes nearby waters to rise and flood the structure and contents? Is that
storm-caused damage, or
flood damage?
In areas hit by Hurricane
Katrina there are a number of disputes whirling about those definitions. Was
damage caused by broken flood control structures – levies – covered by Named
Storm/All Other Perils or is that related to Wind and Hail coverage? What caused
the damage, wind or water? Would waters have risen and levies break unless
driven by hurricane force winds?
The knowledgeable staff at Carswell
Insurance Services is equipped to answer questions such as these as well as any
other insurance related topics.
 Hilton Head Office:
1 Park Lane
Hilton Head, SC
843-785-5191
Bluffton Office:
2 Westbury Park Way
Ste 103,
Bluffton, SC
843-815-9650
For more info, visit us on the Web at
www.Carswellus.com
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