Every year Floridians play a guessing game.  Is this the year a major storm will hit the Panhandle?  We're only weeks away from the beginning of hurricane season 2008 so here’s the question:  are you and your home ready?

Hurricane Katrina left $81 billion dollars of damage in her path making it the costliest storm in U.S. history.  Insurance agents say there are three things you should do before hurricane season even begins.  Homeowners need to make sure the amount of coverage on their policy is adequate, check their deductibles, and ask their agent about flood insurance.

Hurricane Opal hit Panama City Beach in 1995 as a category 3 storm causing $3.5 billion dollars worth of damage and securing its spot as the 20th most costly storm to hit the United States.  Many people describe the aftermath as looking like a war zone.

“It washed the sand out from under most of the houses across the street,” remembers Panama City Beach homeowner J.W. Neal.  “Some of them were demolished and they had to tear them down.”

Just after the storm roads were impassable.

“You couldn't drive down Surf Drive.  They finally got a bulldozer out and drove it down the middle of the street.  They pushed all the debris and wood and stuff out of the middle of the street so you could drive on it,” Neal said.

It's an experience that made him realize just how important it is to have enough insurance on his home.

Insurance agent Trey Hutt recommends that homeowners meet with their insurance agents before hurricane season begins to make sure they are adequately insured.

“People tended to be under-insured three or four years ago during the boom.  Now we have the opposite problem,” Hutt explained.  “With home and construction prices falling people may now be over insured.  They can reduce their coverage, save some money, and still be adequately insured.”

Hutt suggests not waiting to find out because you may need a letter from a contractor or an appraisal which can take some time.

For those of you who do not own a home, renters insurance is a good thing to have especially during hurricane season.  Renters insurance will pay for your belongings after a storm just as homeowners insurance does.

Flood insurance, however, requires a separate policy from a homeowners or renters insurance. 

“It was an eerie feeling watching it come up.  I kept thinking it would just get in the yard,” recalled Lynn Haven homeowner Robbie Jones.  “It came over the seawall; it got in the yard and started puddling up. Then it started coming up on the porch.  When it touched the bricks that's when we decided it was time to go.”

Most of the time Jones has a beautiful view of the Lynn Haven Bayou, but when Hurricane Dennis blew through in 2005 the water came a little too close for comfort.

“It got up in the outlets so 18 inches to 2 feet.”

Jones’ house didn't have much wind damage, but the rising waters left him with close to $100,000 in flood damages.  Luckily he had the additional flood insurance policy.

“We had to use all of our cash before we saw any of theirs, but they did eventually pay up.  That was a good day,” explained Jones.

Even if you don't live right on the water insurance agents still recommend buying the policy. 

“When people ask me if they're in a flood zone or need flood insurance, I ask them to get out their drivers license.  I say if it says Florida on it, you need flood insurance,” said insurance agent Trey Hutt.

He says about a quarter of losses in the flood insurance program come from people who aren't technically in flood zones.  If you're planning on buying flood insurance go see your agent today.  There is a 30 day waiting period before the policy takes effect, so if you wait until there's a storm in the Gulf it's too late.

Jones recommends buying the additional policy.  He says when you're going through the aftermath of a storm the last thing you want to think about is how you're going to afford the repairs to your home.

“You wouldn't think it would be that big of a deal.  Oh, I'm insured and I've got this and that, but that's your stuff in there and it's getting wet.  It really weighs on you.  It's a lot to go through,” contended Jones.

Where you live will determine your property's flood risk, and also how much money you'll have to pay for the insurance.  The closer you are to water, the higher the risk and the higher the premium.

If you're one of many Florida homeowners who have been dropped from your insurance company, be very careful when trying to find a new one.

Hutt says there are many new companies in the State that have very low premiums, but he's not convinced they're financially stable enough to still be around after a storm.  He suggests looking for an agency that has an AM Best rating of an A or B.  AM Best is one of several insurance company rating systems, and the one Hutt recommends.

If all else fails the State's insurance company, Citizens Property Insurance, is an option.