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Financial Prep for Severe Weather

Written by: Hometown’s Commercial Claims & Certificate Coordinator Michael DiPalma

Material excerpted from: Statista, Floodsmart

Many people track the weather on a daily basis in order to plan their lives. When severe weather warnings are in effect, people naturally react by stocking up on emergency supplies to ensure that they are ready for the weather while remaining safe as possible. It is vital for people to be prepared for severe weather. Stocking up on supplies is important to consider but don’t forget the financial impact that may occur. It can be helpful to know your insurance deductibles before a natural disaster hits to remain financially secure. For instance, if a building is insured for $500,000 value, and the deductible is 5% for wind/hail, that is a $25,000 deductible when there is a claim. This is often overlooked, as many are unaware that deductibles can vary depending on the type of loss sustained. Weather deductibles vary from other deductibles because losses that result from weather frequently lead to extensive losses.

In 2017, research indicates that global “catastrophic weather” events led to approximately 519 billion U.S. dollars in damages. However, this statistic only represents what is defined as a catastrophic weather event. There are more economic losses, which occurred aside from this statistic, that are not labeled as destructive. There is economic loss at the individual level, while this number reflects direct damages worldwide. This measurement indicates the severity of economic loss due to weather in just one year. The staggering numbers emphasize the importance of knowing your deductible to be prepared.  

It is equally important to assure your coverage will react to any weather exposure in your area. For example, most businesses and homes are not insured on their primary policies for floods. Flood is typically purchased as a separate policy. Additionally, flood coverage is only triggered in certain instances: if the insured premise is located in a certain zone, the flood loss must meet the policy’s definition of flood to be covered. A flood is defined as an accumulation of water above the ground level, on land, which is normally dry. Additionally, a condition of the flood is that the water must affect two or more properties or two or more acres of land to be considered a flood (

So, when you track that weather, it is good practice to consult with your insurance agent to ensure you are financially secure and adequately prepared in the event of a loss/claim. 

Call your Hometown today to speak with a trusted advisor to review your flood coverage and deductible at 631-589-0100 or 1-800-568-SAVE (7283) or contact us by email at  for helpful information.

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