Hurricane preparation usually means checking shutters, clearing gutters and bringing outdoor furniture inside. But one of the most important checks takes place on paper: making sure the sum insured on your home bears some relation to what it would actually cost to rebuild.
According to Stephen Muso, Head of Personal Lines at Allshores, the figure that matters is not a property’s market value, the balance remaining on its mortgage or the amount of damage its owner thinks a hurricane is likely to cause. Home insurance is intended to cover the cost of repairing or rebuilding the property, so the policy should reflect its full rebuilding or replacement cost.
Those figures can be very different. Market value includes the land and reflects what a buyer may be prepared to pay. Rebuilding cost is the estimated price of reconstructing the home after serious damage or destruction. Muso notes as labour and material costs change, a policy that was sufficient several years ago may no longer be adequate.
Muso recommends reviewing the sums insured every year, as well as after renovations, major purchases or the addition of valuable belongings. Allshores can offer guidance using average local rebuilding costs and arrange a property survey, although Muso says an independent assessment by a qualified quantity surveyor or other suitably qualified professional will provide the most accurate figure.
The Hidden Cost of Underinsurance
The consequences of getting that figure wrong can extend beyond a total loss. Allshores gives the example of a home that would cost $500,000 to rebuild but is insured for $250,000. Because the house is covered for only half its rebuilding value, the insurer may pay only half of the submitted claim, less the applicable deductible. The owner has, in effect, taken responsibility for the uninsured portion of every loss.
The main dwelling is not the only consideration. Patios, walkways and retaining walls are among the parts of a property that homeowners commonly overlook. Muso advises that contents should also be assessed room by room, using the replacement cost of furniture, appliances, clothing, electronics, kitchenware and other possessions. Jewellery, artwork, watches and portable electronics may need to be reviewed separately and supported by professional valuations.
Homeowners should also understand what kind of water damage their policy covers. Muso explains that roof damage, broken windows and damage to doors or shutters are generally covered, as is water entering through an opening first created by hurricane winds. Flooding, rising water and storm surge, however, may be excluded under a standard policy depending on the property’s location. Water entering without evidence of external storm damage may also raise questions.
Maintenance Matters
Muso stresses that insurance is intended for sudden and unforeseen damage, not wear and tear, neglect or an existing defect. An ageing roof, missing or damaged shutters, blocked gutters, cracked walls or poor drainage could affect a claim if the problem contributed to the loss or made it worse. Repairs should be completed before hurricane season and the records retained.
A simple photographic inventory can save trouble later. Allshores advises taking photographs or video of contents and valuables, along with the roof, shutters, boundary walls, garages and other insured structures. Copies should be stored digitally where they will remain accessible if the property is damaged.
If You Need to Make a Claim
After a storm, safety comes first. Once the area is safe, notify the insurer promptly and photograph the damage before moving or repairing anything. Temporary work to prevent further loss—covering a broken window or damaged roof, for example—can usually be undertaken, but receipts should be kept and permanent repairs should wait until the insurer or adjuster has inspected the damage. Damaged items should not be discarded too quickly.
Before the next warning is issued, Muso says homeowners should make two checks: that the policy is active and paid up to date, and that the coverage is enough. Discovering either problem after a loss is already too late.
Click here to read more from A Guide to Hurricane Season 2026
