AS the 2025 Atlantic hurricane season looms, a leading real estate expert is urging homeowners and commercial property owners across Jamaica and the wider Caribbean to reassess their insurance coverage to ensure it reflects current rebuilding costs.

According to Allison Morgan, CEO of VM Property Services Limited, many insurance policies are based on outdated property valuations — leaving properties underinsured and vulnerable to financial loss in the event of a storm or other disaster.

“Too many policies are still based on valuations that no longer reflect the true cost of rebuilding,” said Morgan. “With inflation, construction cost increases, and ongoing supply chain delays, replacement values have gone up across the region. If your property isn’t properly valued, your insurance coverage may fall short when you need it most.”

Morgan stressed the importance of understanding the difference between market value and replacement value. While market value represents a property’s sale price, replacement value reflects the actual cost of rebuilding — an essential factor when it comes to insurance coverage.

“Insurance providers calculate risk and set policy limits based on accurate replacement values — not what the market says your property is worth,” Morgan explained. “If you haven’t had a formal valuation done in the last few years, now is the time.”

VM Property Services recommends that property owners review their insurance coverage annually and conduct formal property valuations every two to three years to remain adequately protected.

“Once the first storm warning is issued, it’s often too late to make adjustments,” Morgan warned. “We’re encouraging all property owners to take action now to safeguard their investments.”