Make Sure Your Home is Insured for Hurricane Season

A hurricane can be devastating in more ways than one.

Along with the physical damage these intense storms can cause, homeowners also have to worry about the monetary and emotional destruction they can cause, especially for those who are not properly insured.

A recent Weiss Ratings report notes that in the majority of hurricane-prone states, homeowners have limited choices of insurance coverage, with just eight property and casualty insurers in each state having control of nearly 78 percent of the market share.

On the bright side, however, changes in recent years in Florida mean Sunshine State residents have more insurers to choose from when shopping for homeowners' insurance. As it stands now, only eight companies control 38.4% of the market share.

According to a Weiss spokesperson, following consecutive years of devastating storms across Florida, several insurance companies have made their way into the market, looking to capitalize on decreasing capacity. While the risk has now been spread among more insurers, the financial strength of the new entrants is up in question, and consumers need to stay tuned to the health of the insurer they choose. That is especially the case in light of the forecast for another busy hurricane season.

The report goes on to note that many start-up insurers that obtained policies from the state-run insurer in recent years are on shaky ground financially. That being the case, consumers want to make sure to do the applicable research on insurers before leaning towards one for a policy.

In Texas, eight carriers ruled nearly 78% of the homeowners' insurance market at year-end. To the east in South Carolina, insurers held 68.2% of the market, in Louisiana it was 63.3%, and in North Carolina it was 61.1%. That compares to 78.3%, 66%, 62%, and 58.5%, respectively in 2002.

According to Weiss, of the 208 insurers with at least $10 million in homeowners premiums in Texas, South Carolina, Louisiana, North Carolina or Florida, Weiss gives 39 companies a grade of B+ (good) or higher, while 33 companies get a grade of D+ (weak) or lower.

For those homeowners in these states, making sure they are properly insured this summer given the weather forecasts is extremely important.

For any homeowners not financially prepared for potential storms, insurance is more important than ever.