Buildings vs Contents Insurance
Home insurance has two distinct parts that are often confused.
Buildings insurance covers the physical structure of your property — the walls, roof, floors, ceilings, fitted kitchen, fixed bathroom, and permanent fixtures. If a hurricane tears off the roof or a fire destroys the walls, buildings insurance pays to rebuild or repair the structure.
Contents insurance covers everything inside the home that is not permanently fixed — furniture, electronics, clothing, jewellery, appliances, and personal belongings. If a burglar steals your television or a pipe bursts and ruins your sofa, contents insurance pays to replace them.
Many Caribbean homeowners buy both together in a single policy (called a 'combined' policy), but they can also be purchased separately.
Hurricane and Catastrophe Cover
The Caribbean is one of the most hurricane-exposed regions on Earth. Every year from June to November, the Atlantic hurricane season threatens islands with powerful storms, storm surge, and flooding.
Standard buildings insurance does NOT always include hurricane or windstorm cover. In many Caribbean territories, windstorm is sold as a separate add-on or endorsement. Always read your policy schedule carefully and look for the words 'windstorm', 'named storm', or 'hurricane' under covered perils.
Similarly, flood cover is often excluded from standard policies. The flooding caused by a hurricane — as opposed to the wind itself — may require a separate flood insurance policy.