As we head into fall, winter will be here quite soon. And it’s a good time to evaluate your home, and your home insurance policy, to make sure you’re protected physically and financially.
“Being prepared takes more than an emergency kit,” wrote Ashley Harris, Neighbors Bank’s director of homebuyer education, in a recent LinkedIn article. “A disaster can turn into a financial disaster fast when you don’t understand your homeowners insurance, your deductible, or what your policy actually covers.”
Read: HOA fees are soaring — and retirees are feeling the squeeze
Is Hurricane Season Still a Concern?
Although 2026 marks the first year since 1914 with no recorded hurricanes on the East Coast through September, and the “quietest start on record in the satellite era (1966),” according to FOX Weather, that doesn’t mean we’re out of the water (so to speak) just yet.
“It’s extremely unusual, of course, to get this far into the season with the Atlantic hurricane-free,” said FOX Weather hurricane specialist Bryan Norcross in a recent report. “But this week is only the mid-point of the hurricane season for South Florida.”
A particularly strong El Nino effect has suppressed hurricanes in the Atlantic but is, simultaneously, creating harsher conditions in the Pacific. So far this season, the left coast has seen 18 named storms and six hurricanes, including four major ones.
Preparation Starts with Reading Your Home Insurance Policy
Wherever you live, it’s smart to prepare now for severe weather events through the fall and into winter. Many homes across the US are underinsured, with policies that will pay out “actual cash value” rather than full replacement value.
Meanwhile, some homeowners have shifted to a percentage-based deductible in the hopes of reducing their insurance premiums. But if you have to file a claim, that deductible could get pretty costly, Harris pointed out.
“A 5% deductible on a $450,000 home is $22,500 out of pocket before your insurance pays a dime on a covered loss. Even 3% is $13,500,” Harris wrote on LinkedIn.
We reached out and asked her for some ways homeowners can protect their financial stake in their property during this unpredictable season. It begins with a close review of your home insurance policy.
Understand Deductibles for Different Types of Claims
Some insurers have started encouraging percentage-based deductibles for certain losses rather than a set dollar amount, Harris said.
“You could have a standard deductible, which is a flat dollar amount, for things like fire or certain types of water damage. Then you can have a completely different deductible for wind, hail, hurricanes, or named storms. These are often percentage deductibles.”
Review the declarations page of your insurance policy to find out exact deductibles.
If you’re unsure, ask your insurance agent exactly which type of deductible applies in various scenarios.
“You could have a $2,500 deductible for one type of claim and a $20,000 deductible for another on the exact same house,” Harris said.
If your policy lists any percentage-based deductibles, do the math to understand how much you could have to pay if you file a claim.
“Usually, you’re taking that percentage against the insured value listed in the policy, often the Coverage A dwelling amount, not the purchase price of the home or what it would sell for today,” Harris explained. “People see 5% and can underestimate what that comes out to in dollars. That’s 5% of the whole house [not the claim amount].”
Armed with the facts, Harris said, “Homeowners need to be honest with themselves: Could you actually write a $20,000 check tomorrow?”
Review Your Dwelling Coverage
People can run into problems in a total loss situation if their policy doesn’t cover the full cost to rebuild their home.
“Homeowners often overlook the dwelling coverage details,” Harris said. “That amount is not the same thing as the home’s market value.”
Know whether you’re covered for the replacement cost or the actual cash value. “Those two numbers can produce very different claim payouts,” Harris said. “Replacement cost generally pays what it costs to repair or replace the damaged property with something comparable, up to the policy limits. The actual cash value factors in depreciation.”
This also goes for claims on other parts of your house, such as roofing, siding or a fence. For example, an older roof may not be worth much after depreciation but could cost $20,000 or more to replace with comparable materials.
“A cash value settlement could leave you paying a much larger share of that cost yourself, plus your deductible,” Harris explained.
Make Sure Your Belongings Are Fully Covered
Even if your house and other dwellings are covered for full replacement value, your personal belongings may not be.
“I wouldn’t assume that because the home is covered at replacement cost, everything in the policy is. Your belongings may be treated differently,” she said.
She added that replacement cost coverage for personal belongings could cost as little as $50 to $150 per year. It’s wise to get a quote, because the cost can vary based on the carrier, your location, the size and value of your home and other factors.
At the same time, belongings may have sublimits on how much you can claim. “You might have a large overall personal property limit, but certain categories like jewelry, firearms, collectibles, cash, or electronics can have much smaller limits unless you’ve added extra coverage,” Harris said.
Understand Exclusions and Endorsements
Both personal property and dwelling coverage could have significant exclusions, which means they aren’t covered for losses caused by certain types of hazards.
“Flood and earthquake are two big ones,” Harris said. “A standard homeowners’ policy generally isn’t going to cover either.”
You may need to look into a separate policy, especially if you’re in a high-risk area. Some policies will allow endorsements to cover floods or earthquakes. You may also want to consider other endorsements to protect your home or belongings. Endorsements for high-value items or collections, damage caused by water back-ups, and service line coverage are some of the common add-ons.
