Insurance commissioner urges policyholders to prepare before hurricane season
Puerto Rico regulator urges residents and businesses to check their coverage.
With hurricane season set to begin June 1, the Office of the Puerto Rico Insurance Commissioner (OCS, in Spanish) has launched a public awareness campaign urging residents and business owners to review and update their insurance policies to ensure financial protection in the event of natural disasters.
Commissioner Alexander Adams-Vega said waiting until a hurricane warning is issued may be too late to secure or modify coverage.
The campaign encourages residents to assess their current policies, especially after any remodeling or additions that could affect replacement costs.
Adams-Vega reminded policyholders that replacement cost is not the same as market value — it represents the actual cost to rebuild the property. If the replacement cost is outdated, policyholders could face reduced claim amounts due to underinsurance penalties, known as coinsurance.
The OCS also recommends reviewing personal property coverage.
“In addition to structural coverage, you must consider contents coverage to protect personal belongings, furniture, appliances or commercial equipment,” Adams-Vega said. He advised creating a detailed inventory and saving receipts and photos to support any future claims.
Identifying policy exclusions is another priority. Certain damages, such as those caused by flooding, may not be covered by standard property insurance.
“Knowing what your policy excludes is essential to avoid surprises at the time of a claim,” Adams-Vega said.
Business owners are also advised to review their commercial coverage, including protection for buildings, inventory, machinery and loss of income.
“It is crucial that business owners ensure their operations are protected against disruption from weather events,” Adams-Vega said.
Another key recommendation is verifying the financial solvency of insurance providers.
“Make sure your insurer has a strong credit rating to ensure their ability to pay claims in the event of a disaster,” he said.
The OCS reminded the public that once a hurricane warning is issued, insurance companies typically close the market temporarily, preventing new policies or policy changes. The agency encouraged residents to act before storm season intensifies and to consider adding flood insurance, which is not included in standard home or commercial property policies.
“Even properties outside traditional flood zones can be vulnerable,” the OCS said.
Understanding the deductible — the amount the policyholder must pay before the insurer covers a claim — is also vital.
“It’s important to choose a deductible that you can realistically afford,” Adams-Vega said.
He underscored the need for an annual review of policies to keep coverage limits aligned with inflation, property value increases and changing flood zone classifications.
“Insurance is a key tool to protect your property and financial well-being from the risks of natural disasters,” he said.
For additional guidance, the OCS encourages the public to contact licensed insurance producers or representatives to clarify policy terms and ensure readiness before hurricane season begins.
