Insurance commissioner activates hurricane educational program

Insurance Commissioner Alexander Adams Vega

By The Star Staff

Insurance Commissioner Alexander Adams Vega said Monday that he has activated an educational campaign to guide citizens and businesses on how to prepare before the start of the hurricane season on June 1.

“Preparation does not begin when a hurricane is announced,” Adams Vega said in a written statement. “It starts today, with an informed review of your policies and insurance coverage.”

Among the recommendations of the Office of the Insurance Commissioner is to verify that the insured value is sufficient to cover the replacement cost of the property, which is not the same as the market value. Remodeling and extensions affect this cost, so the policy should be reviewed to prevent the company from applying coinsurance reductions.

The commissioner urged owners to ensure not only the structure, but also the contents of their property or properties. He recommended that owners make an inventory of belongings and keep photos or invoices that can serve as evidence in case of a claim. He noted that policies can exclude certain damages such as those caused by floods, so the property owner should consider purchasing an additional policy against this type of risk.

Adams Vega also stressed that once a hurricane warning is issued, insurers close the market and do not allow new policies to be purchased or existing ones to be modified. Therefore, citizens must act before a major storm is announced.

Other tips include reviewing the commercial policy in the case of owning a business, verifying if a policy includes income loss protection, understanding the deductible well, confirming the insurer’s solvency through agencies such as A.M. Best, and knowing how to file a claim in case of damage. Also, having a photographic record of the before and after of an event is vital in processing effective claims.

In the case of homeowners with a mortgage, the importance of maintaining the policy known as “hazard insurance” even after the loan is finalized, was highlighted.

“Without insurance, you would be taking on 100 percent of the risk of any property damage,” Adams Vega said, reiterating that construction costs, risk areas and property values change over time, so it is essential to do an annual review of policies to maintain adequate limits and avoid financial losses.

The Atlantic hurricane season runs through Nov. 30.