With hurricane season here, it pays to be prepared

Any meteorologist will tell you that predicting the whims of Mother Nature is an inexact science. Whether it's hurricanes, tornadoes or floods that tend to occur in your neck of the woods, the best you can do is have a plan for when disaster strikes - and that includes reviewing your insurance policy.

Many homeowners are unaware of how their insurance policies work in the event of a storm. According to a recent survey by the Insurance Information Institute, 48 percent of homeowners believe they will be reimbursed for the market value of their home if it is destroyed. Insurance policies, however, are actually designed to cover the cost of rebuilding.

There's never a bad time to revisit your insurance policy, but those on the Eastern seaboard and the Gulf Coast in particular may want to pay special attention before and during hurricane season. Lisa Lobo, consumer insurance expert for The Hartford, recommends looking at the following eight items to make sure you have the proper coverage:

1. Wind coverage: "Many homeowners aren't aware of the need for wind coverage or if they have wind coverage," says Lobo. In the event of a hurricane, you must have wind coverage within your home insurance policy to receive compensation for damage. If you live in a high risk coastal area, you may need to purchase wind coverage from your state wind pool or association, or from a surplus lines insurer.

2. Flood insurance: Flood insurance is not covered on homeowners' policies - it is a separate insurance policy that is needed to cover damage that results from flooding, even if the flooding was caused by a hurricane. For more information on flood insurance, visit the Federal Emergency Management Agency's information page at www.fema.gov/nfip.

3. Deductibles: You may have a different deductible for a storm than you would for an event like a burglary or fire. Your policy may have a hurricane deductible or a wind deductible. These deductibles are typically based on a home's insured value and are a percentage of your home's value at the time of the storm, rather than the traditional set dollar deductible. If, for example, a house is insured for $100,000 and has a 2 percent deductible, the first $2,000 of a claim would be paid by the policyholder. Percentage deductibles may vary from 1 to 5 percent. And in some coastal areas with high wind risk, wind or hurricane deductibles can be even higher.

4. Students: If you have a child living away from home while in school, you may be eligible to receive compensation for your child's items that may have been damaged during a storm at his or her school. Check with your insurance agent or insurance carrier to see what might be covered.

5. Reimbursement for living expenses: Most policies include reimbursement for living expenses if you are forced to live elsewhere while storm damage to your home is repaired, but this does not include lodging costs if you are simply forced to evacuate your home. Planning for these expenses ahead of time can make evacuation go more smoothly.

6. Replacement costs: Check to see if your policy will cover the replacement cost of your property or only its actual cash value (ACV), which factors in depreciation. It's not uncommon for policies to provide actual cash value for damaged possessions. For example, you may only be reimbursed $500 for the $2,000 television purchased a few years ago. Another item to keep in mind is that a standard policy generally requires the homeowner to carry a limit that is at least 80 percent of the current cost to rebuild the home. Whichever type of policy you have, it's a good idea to make your insurance company aware of any recent upgrades and ensure that you have adequate coverage when you need it.

7. Auto coverage: Check your auto policy to see what might be covered if your vehicle is damaged in a storm. Most comprehensive policies cover storm-related damage, including flooding. So it's best to check with your agent or insurance carrier directly to ensure you have the right protection in place.

8. Storm-resistant improvement credits: Ask your insurance provider if you are eligible for credits for hurricane-resistant improvements, such as storm shutters. You might be able to save some money.

Facing a natural disaster is a challenging experience, but having the proper insurance protection in place will help ensure things return to normal as soon as possible if a storm strikes your property. If you would like more information on how to get prepared or file a claim after a storm, The Hartford has resources available at www.thehartford.com/heretohelp.