The weather in Hawaii is known to be beautiful throughout much of the year, but the threat of hurricanes can be quite real when living on the Big Island. For this reason, it’s critical to talk to your Big Island realtor about what to expect, especially when it comes to buying hurricane insurance. Although few hurricanes do serious damage to the island, being prepared ensures you are covered in the event a hurricane strikes.
Hurricane Insurance Is Extra
Many people make the mistake of thinking their homes are covered from flooding and other damage due to hurricanes. However, most standard homeowner’s policies don’t cover these items. When you’re considering Big Island real estate, it’s essential to have a clear picture of just how much extra hurricane insurance may cost. In many cases, the exact location of your home can play a dramatic role in the overall cost of your insurance policy.
Specific Deductibles for Hurricanes
While every insurance policy dictates a deductible that must be paid when you file a claim, hurricane insurance typically has a higher deductible, which often surprises many homeowners. As you evaluate your policy before you sign on the dotted line, it’s important to look for a specific hurricane or wind damage deductible so there are no surprises if a hurricane damages your home. In many cases, this deductible will be listed in terms of a percentage of the value of your home, versus the flat rate often found in your standard homeowner’s insurance policy.
Check for Other Coverage Gaps
In addition to hurricane damage, there may be other gaps in your insurance policy that need to be covered. Making sure you have enough coverage to pay for any items within your home that may be lost during a hurricane is another necessary step many homeowners forget. Compile a list of your belongings, take photos of high-price items and their receipts and keep this information in a safe location. Talk to your insurance agent about certain items, such as fine art, jewelry and other large ticket items that may fall beyond your homeowner’s insurance coverage.
Hawaii may not be the hot spot for hurricanes in the United States, but there is still a risk that typically runs from mid-August through mid-October. While you’re shopping for Big Island real estate, it’s essential to make sure you have the appropriate insurance coverage to protect your investment. Living on the Big Island can be an exciting, yet relaxing, experience, but before you make this major move, it’s necessary to be well aware of all the costs, including purchasing additional hurricane insurance.
If you’re interested in buying Big Island real estate, contact us. We can help you understand everything necessary for buying and maintaining a home in Hawaii.