Grand Cayman, Cayman Islands (Wednesday, 17 June 2020) In light of hurricane season, the Cayman Islands Monetary Authority (“CIMA”) advises property owners in the Cayman Islands to be adequately insured against damage caused by natural disasters.
Every year, we witness the impact caused by hurricanes. However, hurricanes are not the only threat to coastal areas. As past experiences have shown, natural disasters such as heavy rain, high winds, flooding, earthquakes, tsunamis and hurricanes can be felt many miles inland, potentially causing loss of life and catastrophic damage to properties. Disaster preparedness experts have indicated that the public should be better prepared to deal with the financial loss resulting from natural disasters. As these disasters are difficult to predict, it is therefore of utmost importance to safeguard your property. As part of our hurricane preparedness awareness efforts, CIMA is committed to ensuring that its employees and the general public are better informed and equipped.
In determining whether your property (including home, motor or boat) is adequately covered against damage caused by natural disasters, here are some helpful tips:
Review and discuss your policy: Take time to carefully review and discuss the scope of your property insurance coverage with your insurance company or broker to better understand the level of coverage available to you for losses resulting from natural disasters. While some insurance companies provide protection against earthquake, tsunami, flood and hurricane as standard coverage, other companies may provide these by extension. Some policies may also limit or exclude some of these perils so please be sure to pay attention to the exclusions and sub-limits of your insurance policy as these may reduce/limit the level of your protection.
Know your property values and replacement cost: Property values and replacement cost vary with time, due to increased cost of construction or inflation, etc. You should review your sums insured as often as possible to ensure that you are adequately insured. This is to avoid underinsurance penalties in the event of a covered loss. If your property is underinsured, you will NOT receive the full value of your claim. Seek advice from your insurance company or broker on the adequacy of your sum insured.
Find a licensed and trusted insurance company or broker: Always insure your property with licensed insurance companies or brokers. A full list of CIMA licensed domestic insurance companies, agents and insurance brokers can be found here.
Additional insurance preparedness tips are also available here.