Why Long Island Homeowners Are Underinsured After a Major Storm 

Hurricanes and nor’easters can leave homeowners with expensive repairs and rebuilding costs. In some instances, a claim may reveal that current policy limits do not reflect today’s construction pricing. Material, labor and construction costs can increase over time, leaving older coverage limits out of step with current rebuilding costs. If dwelling coverage is based on an outdated estimate, homeowners may face higher out-of-pocket costs after a major loss.

Common Coverage Gaps After a Storm

Severe weather can highlight policy limitations that property owners may overlook, such as:

• Exclusion of flood damage: Standard policies generally do not cover flooding, which can require a standalone policy through the NFIP or private carriers.
• Inadequate limits on other structures: Existing coverage may fall short of the actual reconstruction costs for detached garages, fences or outbuildings.
• Exhausted additional living expenses: Temporary housing benefits can reach policy maximums before home repairs wrap up, especially during regional labor shortages.
• Gaps in debris removal coverage: Storm cleanup costs can exceed the policy’s debris removal limit, leaving homeowners to pay the difference.
• Gaps in ordinance or law coverage: Without sufficient ordinance or law coverage, homeowners may face unexpected out-of-pocket costs to comply with updated local building codes.

Tips for Reducing Coverage Gaps

A few proactive steps may help keep your coverage aligned with current rebuilding costs:

• Schedule regular policy reviews
• Ask for an updated rebuilding cost estimate
• Make sure recent home improvements are reflected in your coverage
• Consider inflation guard coverage to help keep limits current
• Review flood insurance limits separately for the home and personal property

We’re Here to Help

Contact J.A. Faccibene & Associates, Inc. today to discuss your homeowners insurance needs and get a free custom quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.