EARLY WARNING WEATHER ALERT: You need hurricane insurance, even if you already have a standard homeowners insurance policy. Hurricane insurance policies apply to the kind of damage you'll see from storms with high winds in coastal regions.
Hurricane insurance coverage works as an addition to homeowners insurance in that you add coverage, pay a premium, and have a deductible if you need to make a claim. It covers the extreme damage unique to storms like hurricanes, and without it, you could face complete destruction of your home without any coverage from your homeowners policy. But as weather events worsen season after season, you may struggle to find an affordable policy. Here are some tips and tricks for reducing costs and finding adequate coverage.
What Hurricane Insurance Covers
Hurricane insurance is not a separate policy you buy outside your homeowners insurance. Instead, it combines a standard homeowners insurance policy with flood and sometimes windstorm insurance to broaden the damage covered. It includes coverage for specific events like wind damage, falling trees, storm debris, and costs related to temporary living expenses if you can't stay in your home after storm damage.
The defining features of hurricanes are wind and water. That's why "hurricane insurance" is made up of policies addressing both. Due to the clear risk in areas that regularly get hurricanes, there is often a 30-day waiting period. Some states may have specific requirements that prevent you from buying a policy once a hurricane watch or warning is official.
Flood Coverage and Water Damage
You'll need flood insurance if you live in a hurricane-prone region. Most homeowners policies do not cover damage from flooding. But flooding isn't the only water damage to worry about, since hurricanes can easily result in rain getting in through broken windows or damaged roofs, so adding an appropriate policy is important.
Windstorm Coverage
Due to the high probability of wind damage in coastal areas, home insurance policies in these areas often exclude wind damage. Adding a specific wind damage coverage is necessary. Coastal homeowners can also buy windstorm insurance through state-run programs or in special insurance pools defined by their risk.
Understanding Hurricane Deductibles
While hurricane policies have a deductible just like regular homeowners insurance, they're calculated a little differently than the standard flat deductibles. These may be called "named storm deductibles" and apply when the National Weather Service names storms. Coverage is often triggered within a specific time range of the storm name application, perhaps 24 hours beforehand to 48 hours afterwards. Other policies may base the trigger on when the official storm watch is called or when the storms hits land.
These deductibles are usually calculated as 1% to 10% of the home's value. A $500,000 house could have a hurricane policy deductible ranging from $5,000 to $50,000. This means you would pay this amount out-of-pocket before the policy kicks in to cover the rest of the repairs. Some states may have legislation that designates the trigger event or caps the maximum percentage insurers may charge.
How To Get Hurricane Insurance
The best day to buy hurricane insurance is yesterday, and the second-best day is today. Since many policies have a 30-day waiting period before any claims can be covered, it's smart to buy hurricane insurance well ahead of hurricane season. But don't let that discourage you. Opting into a policy as soon as possible could help prevent serious financial losses when you file a hurricane insurance claim after a storm.
Start by shopping around for quotes. You can use an online quote aggregator or work with agents or brokers to find a policy that fits your budget and needs.
If you live in a high-risk area, you may have trouble finding affordable private insurance. Look into the National Flood Insurance Program (NFIP), which is a government-backed program. While private insurance offers higher limits and loss of use coverage, the NFIP has a $250,000 cap and no loss of use coverage. But it may be the most affordable and available option in some areas.
Investing in physical hurricane mitigation features like storm shutters, impact-resistant windows, and reinforced roofs can not only better protect your home but also help you secure a more affordable policy.
Filing a Claim After a Hurricane
It might be overwhelming to think about paperwork after a catastrophic storm, but connecting with your insurer is the next best step. Begin by:
Doing the paperwork before any deadlines: Prompt claim filing after a hurricane can help get your home repaired quickly — especially since many policies have a cut-off of about 60 days after the storm to file.
Taking pictures: Start by documenting any damage with pictures. It's a good idea to take "before" pictures around the time you buy your policy so that you have a reference against storm damage later.
Saving receipts: If you have to spend any money immediately, such as paying for a hotel to stay in, keep receipts. These costs may be covered under "loss of use."
Filing a claim with your home insurance hurricane coverage is straightforward and can be well worth the time and financial investment.
Get Customized Home Insurance Quotes
Don't wait for the wind to start blowing — get insurance coverage for hurricane damage with a customized home insurance quote today from EverQuote. Getting a customized quote is always free and takes just a few minutes. Insurance prices fluctuate daily, so get your quote today to find the best policy.