Protecting your home, finances from storm loss

Check with your insurer to see if a backup generator will qualify for insurance discounts. (Joe Raedle, Getty Images)

The hurricane season, which officially started June 1 and ends Nov. 30, increases the chances for expensive home damage from rain, flooding, sewer backups and fallen trees. But many of these damages aren't automatically covered under your homeowners insurance.

Here are several steps to take to protect your home and your finances from storm losses.

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Buy a rider to cover sewer backup. "Water backup through sewers and drains from rain is an underappreciated threat," says Bob Welther, assistant vice president of loss prevention for ACE Insurance, a global property and casualty insurance company. Significant rains can overburden the stormwater system, causing water or sewage to back up into your house. Not only is the backup unpleasant, but it also can be very expensive if it ruins your finished basement or storage space.

Most homeowners insurance policies exclude coverage for sewage backup, but you can often add $10,000 to $20,000 in coverage for as little as $50 per year; the coverage pays out if a sewer line backs up or your sump pump stops working. Contact your homeowners insurance company to check on coverage and add a sewage-backup rider. You might also consider getting a battery-powered backup sump pump, which can provide an extra layer of protection if your electricity goes out or your sump pump ends up with more water than it can handle.

Add flood insurance. Homeowners insurance covers wind-driven rain — generally rain that comes into your house from the roof, windows, doors or holes in the walls — but not flooding, which is water that comes into your home from the bottom up. You can buy that coverage through the National Flood Insurance Program (and some mortgage companies require it). The maximum $250,000 of coverage costs $365 per year in a low-risk area ($405 if you have a basement) and can run $2,500 or more per year in a high-risk area.

For price quotes and an assessment of flood risk for your address, see the NFIP's floodsmart.gov. There is a 30-day waiting period before the coverage takes effect, so buy the insurance before May 1 to ensure you have coverage in time for the start of hurricane season.

Storm-proof your house to save on premiums. Most homeowners insurance companies offer discounts if you take measures to protect your home from storm damage. Chubb Insurance, for instance, gives a discount of up to 25 percent off its homeowners insurance coverage if you add storm-proof shutters. Install an automatic backup generator, which can help power a sump pump, and the company gives a discount of up to 5 percent.

Welther also recommends getting a lightning rod with surge protection to help prevent damage during an electrical storm. That might also get you a discount.

Do home maintenance. Before storm season, clean gutters and ground-level drains, and be sure the ground is graded and the landscaping designed so the water flows from the foundation, not toward it. Also, trim trees and remove dead branches, which can cause expensive damage during storms. Homeowners insurance usually limits coverage for tree damage to $500 or $1,000 — far less than the cost of hauling away a tree or a large limb. Finally, move electronics, papers and other valuable items so they are off the floor in your basement.