Insurance: Make Sure You're Covered

Insurance: Make Sure You're Covered

Hurricane season has begun.  Financial experts say many U.S. homeowners are woefully unprepared for the threat that wind, storms and floods pose to their home and its contents.

Close to 60% of U.S. homes are undervalued — with the average home undervalued by 22%, according to Marshall & Swift/Boeckh, which provides building-cost information. That means homeowners often don't have enough insurance to rebuild their home if disaster struck.

In hurricane season, which runs through the end of November, 13 to 16 tropical storms are likely to form in the Atlantic Ocean, says the National Oceanic and Atmospheric Administration.  It takes just one to wreak havoc on your home.

That's why it's important to make sure you have enough insurance on your home and to know exactly what your policy covers. In coastal areas, where the risk of storm damage is highest, you may need more than one insurance policy to cover wind and water damage to your home.  Even if you don't live near a coastal area, you still need homeowners insurance and possibly some supplemental insurance.