The Cayman Islands Monetary Authority (CIMA) is urging residents to review their insurance cover as the 2026 hurricane season begins.
The regulator said it takes only one hurricane to cause widespread damage, making insurance an important part of disaster preparedness for homeowners, businesses and vehicle owners.
CIMA pointed to the growing intensity and unpredictability of hurricanes, as well as other natural hazards including flooding, earthquakes, tsunamis, heavy rainfall and high winds.
According to the authority in a press release on 4 June, such events can cause extensive property damage and loss of life, with impacts often reaching areas far inland.
The regulator said disaster preparedness specialists have stressed the need for residents to be ready for the financial consequences of natural disasters as these events become more frequent.
As part of its hurricane preparedness and public awareness efforts, CIMA said it continues to promote greater understanding of disaster risks and financial protection across the Cayman Islands.
A recent study commissioned by the authority found that about 70% of residential and commercial properties in the islands are insured, suggesting a protection gap of 30%.
To help address that gap, CIMA is encouraging residents to review their existing insurance arrangements with their insurer or broker.
The authority said policyholders should confirm whether their cover includes protection against hurricanes, floods, earthquakes and tsunamis, as some policies provide this cover automatically while others offer it as an optional addition.
Property owners are also being encouraged to understand their deductibles, coverage limits and any exclusions that may affect a future claim.
CIMA noted that rising construction costs and changes in property values can leave homes and businesses underinsured if coverage is not reviewed regularly.
The regulator warned that underinsurance could result in claim payments that fall short of the full value of a loss.
Residents are also being advised to maintain an up-to-date inventory of household and business contents to ensure policy limits remain adequate to replace damaged possessions.
In addition, CIMA reminded consumers to verify that their insurer, agent or broker is licensed to operate in Cayman.
