DURING HURRICANE SEASON;
BE SURE YOU'RE SECURE

Every year, Puerto Rico faces the threat of hurricanes, floods due to heavy rains and other weather events that can cause extensive damage to property. For this reason, we call on citizens, including homeowners, businesses and businesses, to review and update their property insurance policies in advance.

The Office of the Commissioner of Insurance of Puerto Rico urges citizens to review and update their insurance policies in advance to ensure that coverage, limits, and insured values ​​adequately meet their needs and the current cost of rebuilding or replacing the property.

What can citizens do?

• Review your policy in advance and verify that it is active and up to date.
• Confirm that your policy limits adequately reflect the current cost of reconstruction or replacement of your property and the level of risk you are willing to assume.
• Ensure that the values used to insure your property adequately reflect the current cost of reconstruction or replacement.
• Regularly review these values, especially if you have made improvements, renovations, expansions, or added structures such as terraces, carports, swimming pools, solar panels, or cisterns.
• Understand the deductibles applicable to losses from hurricanes, wind, and other covered risks.
• Review your policy with your insurance producer to understand its coverages, limitations, coinsurance penalties, and exclusions.
• Remember that floods are generally excluded from property policies. Evaluate whether you need additional coverage for this risk.
• Learn about complementary alternatives available in the market, including parametric insurance, which could strengthen your protection against certain weather events.
• Create an updated inventory of your belongings before hurricane season.
• Take updated photos and videos of your home, business, and belongings.
• Keep digital copies of your policy, receipts, inventories, and important documents in a secure location.
• Keep the contact numbers for your insurer and your insurance producer in an accessible place.
• If a loss occurs, notify your insurer as soon as possible and keep evidence of the damages and expenses incurred.

What if the property has a mortgage?

Cost of Reconstruction or Replacement

Many people, as required by their financial institution, are required to maintain a property policy for the term of their mortgage, commonly known as a “Hazard Policy”. It is important to know that even after the term of your mortgage is over, it is advisable to keep your property insured. Without insurance, you would be assuming 100% of the risk of any property damage. This could mean losing your home or business completely without insurance should a claim occur.

Content Protection

The cost of reconstruction or replacement does not necessarily match the market or appraised value of a property. It refers to the estimated cost of rebuilding or replacing the structure with similar materials and features. Keeping this value updated helps ensure adequate protection. If the property is insured for a value less than the actual reconstruction cost, the payout might be insufficient to cover the loss, and coinsurance penalties could apply.

Flood Insurance

Property policies generally do not cover damages caused by floods. If your property is located in a flood-prone area, consider acquiring specific coverage for this risk.

Mortgaged Properties

While many financial institutions require a property policy as a condition for a mortgage, the need to protect your property does not end when the debt is satisfied. Maintaining adequate coverage helps protect one of the most important investments among your assets.

Don't Wait Until the Last Minute

Once a storm or hurricane watch or warning is issued, insurers may temporarily restrict the issuance of new policies or changes to existing coverages. Therefore, it is important to make any revisions or adjustments before a threat arises.

Being insured should not be viewed as an expense, but rather as a tool to protect your assets, your family, and your peace of mind.

Preparation today can make a significant difference in protecting your family, your assets, and your peace of mind tomorrow.

For more guidance on how to prepare and review your policies, we encourage you to contact your insurance producer or authorized representative. Purchasing an appropriate hurricane insurance policy will provide you with financial protection and peace of mind at a time when the risk of extreme natural events is higher and more frequent.

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