This blog post summarizes a recent WTVG “Watching Your Wallet” segment that spotlights the hidden financial risks homeowners face when severe weather strikes.
Drawing on reporting by Sashem Brey, it explains why many people mistakenly assume their standard insurance will cover all storm-related damage.
It lays out practical, expert-backed steps to reduce financial exposure before the next major event.
Why standard homeowners insurance may not be enough
Many standard homeowners policies provide broad protection for fire, theft and many forms of water or wind damage, but important exceptions are common.
Floods, earthquakes, and certain wind or hurricane-related losses frequently require separate coverage.
Policy language around deductibles and valuation methods can dramatically affect recovery outcomes.
Insurers often exclude losses that come from rising water (flooding) and may limit payouts for windstorm damage depending on your location and endorsements.
Differences between replacement cost and actual cash value can leave homeowners undercompensated after a loss.
Waiting to buy supplemental insurance can mean missing mandatory waiting periods—leaving families exposed when storms arrive.
Key financial gaps to watch for
Before the next storm season, check your policy declarations page and pay attention to exclusions and special deductibles.
Common gaps include:
How to prepare: coverage and cash strategies
Financial preparedness is as important as boarding up windows.
Start with a clear review of your existing coverage.
Adopt a two-pronged approach: buy appropriate supplemental policies where needed and build an emergency fund to cover immediate out-of-pocket expenses after a disaster.
Act early: flood insurance often has a 30-day waiting period before it takes effect, so don’t wait until a storm is on the horizon to make changes.
Document your home’s current condition and inventory valuable items now—photographs and receipts speed claims and reduce disputes later.
Practical steps homeowners can take today
Below are focused actions I recommend after three decades advising homeowners on risk management:
Here is the source article for this story: Watching Your Wallet: Extreme Weather Preparedness