The potential impact of Hurricane Bill has yet to be determined, according to accounts today. But whether you're affected or not, it's a good time to review your homeowners insurance policy to see what's covered. As we note in a recent Consumer Reports article, in many areas insurance companies have reduced coverage for perils like wind storms and hurricanes, typically by increasing the deductibles for those events.

Flood damage, whether related to a hurricane or not, is never covered by a traditional homeowners insurance policy. For that protection, you'll have to buy national flood insurance from the federal government. As the hurricane season revs up, now is the time to buy such coverage, since it takes 30 days after purchase to go into effect. And FEMA experts say that fully a quarter of flood damage takes place in locations deemed moderate- and low-risk.–Tobie Stanger