Despite the fact that insurance rates are down by as much as 10% in 2009, many Jamaican homeowners are not insuring their properties – sighting affordability as their main reason for doing so. This, despite the fact that the 2009 Atlantic Hurricane season has just started, and forecasters predict that it is likely to produce more than ten storms, some of which could cause severe damage to property on the island.
“Home insurance is just too expensive” is the common lament of many Jamaicans, and some seem to prefer the gamble / worry each year that their property will be spared the wrath of a ferocious storm. Undoubtedly also, the matter has been made worse this year due to the adverse effect that the economic downturn has had on disposable income.
That aside, while there are those who opt not to insure at all, there are others also who chose to under-insure their properties – in order to make the premiums more affordable to their pocket. In some cases as well, it is widely known that many of the persons who actually insure their properties do so only because they are compelled to by the terms of their mortgage agreements.
Some reportedly have not even bothered to under-insure their homes because of the condition of average policy that was largely implemented by local insurance companies after Hurricane Gilbert devastated Jamaica in 1988. The clause dictates that if the sum insured at the time of the loss is less than the actual replacement value of the property, then the amount that you will receive from total claims will be apportioned accordingly.
