Some of the earliest predictions for the National Oceanic and Atmospheric Administration (NOAA) say the 2025 Atlantic hurricane season will be one of the most active on record. They predict a 60% likelihood of “above-normal” activity this season. Spanning from June 1 to November 30, this season could see between 13 to 19 named storms, with six to ten of those potentially becoming hurricanes, including three to five major hurricanes classified as Category 3, 4, or 5. With predictions as destructive as these, our specialists recommend taking the time to check and update your home insurance policy.
Charles Nyce, a professor of risk management and insurance at Florida State University, recently testified to the need for this review process. Fischer’s advice is to read the fine print and don’t skip the details. It’s on these homeowners to make sure their coverage meets the unique risks hurricanes can present.
Bob Passmore—vice president of personal lines at the American Property Casualty Insurance Association (APCIA)—is imploring homeowners to carefully review their insurance coverage. Even better, he urges them to carry out this exercise at least annually. He is a strong advocate for the idea that policy caps should reflect true rebuilding expenses after a disaster. This protects homeowners completely when it matters most.
In put to mitigate all hazards especially the financial implications of hurricanes can be staggering. As FEMA says flooding is the most common and widespread hazard in the U.S. accounting for 90% of disaster damage each year. This frequently results in wasteful losses in the billions of dollars. These numbers show just how critical it is for Americans to review their coverage, especially as storms are more frequent and damaging than ever.
Rising costs of building supplies only stack things against homeowners. According to the APCIA, construction labor costs have increased 36.3% in the last five years. At the same time, inflation in the price of building materials has reached an astounding 42.7%. With these climbing expenses it’s more important than ever that homeowners get their insurance policy in line with today’s market.
Nyce has heard that most insurance companies stick to the 80% rule. As written, this rule mandates that coverage is no less than 80% of the full replacement cost. The implementation of this rule is the first step to making sure that homeowners are properly protected from any catastrophic loss.
In addition, Nyce warned homeowners against choosing increased deductibles for wind damage. “But go way, way, careful on selecting bigger wind deductibles,” he cautioned. This decision can make a huge difference to how financially prepared you are when a hurricane or any disaster comes your way. For instance, if a homeowner chooses a 2% deductible on a $500,000 house, they could face out-of-pocket costs up to $10,000 for wind damages.
“You can’t just buy it when you think you’re going to need it like 24, 48 or 72 hours before the storm makes landfall.” – Charles Nyce
As we enter into this hurricane season, it’s not just the physical preparations that matter. Ken Graham, director of the National Hurricane Center, highlights the importance of planning ahead. “Develop an emergency response plan and stockpile supplies today,” he urged. By taking these proactive steps now, you’ll be better prepared long before a storm approaches.
Insurance experts stress that it’s necessary to regularly review what’s covered. It needs to be just one component of a more untapped, all-encompassing preparedness strategy, which includes stockpiling emergency supplies and developing an evacuation plan.