Hurricane Insurance: Do You Need it? How Does it Work?

Much like most insurance policies, hurricane coverage is complicated. Hurricane insurance tends to be a bit more complex than other types of protection, however, due to the fact that hurricanes can cause all sorts of damage from a variety of forces.

Your standard homeowner insurance policy will most likely cover any damage to your roof, deck, garage or other features due to the strong winds of a hurricane. However, any water damage due to flooding or heavy rains the hurricane bestows upon your region will be flatly rejected by your basic policy. In order to secure coverage for those types of damages, you need a separate flood insurance policy purchased through the Federal Flood Insurance program – a private/public partnership between the federal government and insurance companies. One great thing about this partnership is that rates are regulated in order to keep them affordable for most property owners.

If you luck out during the hurricane season and only experience wind damage on your property, you will discover how hurricane coverage differs from that of say, a tornado, for example. Hurricane wind damage is generally subject to a different deductible before the insurance company will begin to reimburse you for repairs. While your deductible is typically at a set dollar figure for claims due to fire damage or other severe weather events, the deductible you pay for hurricane damage is usually set as a percentage of the total repair costs. Complicated enough for you yet? These percentages can vary from company to company, but most are within the 3 to 5 percent range.

You may be required by your lender to obtain flood insurance if you live in an area at high risk for hurricanes, which often cause flooding. Even if you have this form of protection, there are many exclusions and limitations on coverage for water damage, and coverage varies from policy to policy and company to company. Be sure to read any policy carefully before purchasing it.

Our agents can help you navigate the complexities of hurricane insurance and flood protection. We can locate you a number of quotes with a variety of coverage options and rates, ensuring you will find the best protection with the lowest deductibles and premiums. Contact us to find out if you are covered for the upcoming hurricane season.