Is your SWFL home underinsured? What to check before hurricane season

FORT MYERS BEACH, Fla. (WINK)—Homeowners across Southwest Florida are being urged to review their insurance policies ahead of hurricane season to avoid being underinsured.

Mike Dagnese has weathered more than 40 years of hurricanes at his Fort Myers Beach home. During Hurricane Ian, eight feet of water flooded his property, sending cars floating and scattering his belongings everywhere.

While the rebuild was challenging, Dagnese said his insurance coverage came through. Before Ian, he carried wind, flood, and homeowners' insurance.

"They only like to give you $100,000 in contents, so we knew that was no problem reaching that mark, because I have so many things around here after 40 years," Dagnese said. "They gave us money, and it pretty much came close to covering it."

Not everyone in Southwest Florida has had the same experience with their insurance claims.

"You can be insured incorrectly or underinsured your whole life and never realize it's a problem until something happens," said Mark Wilcox, owner of Wilcox Family Insurance.

Wilcox said many homeowners don't realize how high construction costs can be to rebuild, leaving them underinsured. 

"A lot of homes, especially policies that have been in place for over five or six years, which a lot have, construction costs have gone up so much, and a lot of people aren't aware of that," Wilcox said.

Wilcox said homeowners must be insured at a certain percentage of the replacement cost, meaning a home valued at $500,000 but insured for only $300,000 creates problems beyond total-loss scenarios.

With hurricane season approaching, Wilcox said now is the time to prepare policies. He recommends reviewing coverage limits and any recent updates to homes or local ordinances.

"Ordinance or law is a huge factor in Florida right now, that basically helps you get back to code for an older house," Wilcox said. "So, if you have a house built in the 70s, so much has changed with your house that you may not have had to update or upgrade."

Dagnese offered his own advice for fellow homeowners.

"Definitely flood insurance if you're in a flood zone, that's well worth it," Dagnese said.

Wilcox said rates are going down and coverage is increasing, making now a great time for homeowners to review their policies with their insurance agent.