IAJ sounds alarm as 95% of J’can homes underinsured amid hurricane season

With the 2025 hurricane now under way, the Insurance Association of Jamaica (IAJ) has launched a new public education campaign urging Jamaican property owners, both locally and abroad, to urgently reassess their insurance coverage before disaster strikes.

The campaign, titled, ‘Real Value, Real Coverage’, comes against the backdrop that only approximately 20 per cent of Jamaica’s residential properties are insured, and of those, an estimated 95 per cent are underinsured.

According to the IAJ, the widespread gap leaves thousands of families and businesses exposed to financial devastation in the event of hurricanes, fires, or floods.

“Every year we see the same thing, policyholders insure their homes or commercial properties based on outdated values and never revisit them,” said Rosemarie Henry, president of the IAJ. “When a hurricane hits, the insurance payout is nowhere near what’s needed to rebuild or repair. That gap can devastate lives.”

The issue is a silent crisis hiding in plain sight. In communities from St Catherine to Montego Bay, the IAJ noted, stories of under-insurance are not uncommon. After Hurricane Gilbert in 1988 and again following Hurricane Ivan in 2004, a significant number of property owners learned that their policies didn’t reflect the true replacement cost of their homes.

The IAJ said the issue is rooted in a widespread misconception that, once a property is insured, many believe it remains adequately protected indefinitely. However, with inflation, material costs, and property values rising, that assumption can be dangerously flawed.

“Imagine buying insurance 10 years ago, never updating the value, and today your roof is blown off in a category-four hurricane,” added Henry. “The payout won’t cover half of what you need to rebuild. That’s the reality for too many Jamaicans.”

At the heart of the campaign is a call to action, starting with three critical steps, check your policy details and valuation date, get a current professional valuation, and speak with an insurer to update coverage.

For Jamaicans who are unsure about their current coverage, the IAJ urged immediate action.

“The hurricane season doesn’t wait for you to get ready,” Henry stressed. “Your policy should reflect today’s reality, not yesterday’s estimate.”