Ordinarily at cocktail parties, conversation lags once I revealthat I work in insurance. But because our non-coastal Connecticuttown was hit hard during the last few hurricane seasons, I'm nowmore popular than the bartender. Working with specialty insurersmay be ideal for agents who serve towns like mine. Below are themost common questions I am asked:

Do I have enough coverage? Most people understand theneed to select a coverage limit based on the cost to build (notbuy), but few know their limits or if they're appropriate.Specialist insurers typically offer guaranteed replacement cost orat least extended replacement cost with coverage extensions inhigher risk areas, to help ensure that a home can be rebuilt inlike kind and quality when the cost to do so exceeds policylimits.

What if we don't want to rebuild at the same location?Specialists typically give their clients the choice to receive acash settlement as high as the policy limit, rather than force themto rebuild in a place that is likely to sustain damage again.

Why not distribute funds up front to make it easier to beginrepairs? Some carriers hold payment until a homeowner provesrepairs are underway, creating a possible financial burden untilreimbursement. Policyholders of specialists receive advances at thebeginning of the settlement process.

Is my finished basement covered if my sump pump fails?Many standard insurers provide less coverage for sewer and drainbackup than required to restore even a media room. Specialiststypically provide up to the coverage A limit that applies in moresituations, including sump pump failure. They also typically offerfull policy limits for contents (coverage C).

Must I stay in a hotel room if my home is uninhabitable?Standard carriers generally cap loss-of-use coverage (coverage D)at 20% of the dwelling limit. Specialist carriers typically providecoverage for “reasonable expenses” so homeowners can maintain theirnormal standard of living.

Will my out-of-pocket costs change depending on event?Although special deductibles are common, triggers vary from namedstorms, wind speeds or hurricane definitions. Sometimes they are adollar amount or a percentage of the dwelling limit, which can meanbig out-of-pocket expenses. Specialists may allow policyholders tochoose their deductibles if they're willing to retain more risk. Ifthere's a large loss when the special deductible is not triggered,specialists typically waive the standard deductible.

Is there a difference in how insurers reimburse treedamage? Specialists provide more coverage for fallen trees andwill remove a tree that has fallen on property other than thehouse. Some work with arborists on preventative services andpreferred response to their policyholders.

Flood insurance is flood insurance, right? Most peoplebelieve that all flood insurance is the same. Specialists oftensell excess flood coverage, which is important because NFIP limitsmight exhaust when a large home is flooded. Some provide enhancedflood coverage with replacement cost for contents in secondaryhomes, additional living expenses and basement improvements.

How much coverage do we have if our homeowners' associationassesses us for damage? Standard insurers may reimburse $1,000for assessments (and sometimes $0 when the assessment is triggeredto cover the association's deductible), while specialists typicallyprovide up to $50,000 and some meaningful fraction thereof to coverassessments issued for the association's deductible.