Hurricane insurance

What is hurricane insurance?

The term “hurricane insurance” can be misleading. There is no single coverage that addresses all the damage caused by a hurricane. However, most homeowners insurance policies, like the ones from Kin, do offer coverage for hurricane wind damage. If you live in a hurricane-prone area like Florida, your homeowners insurance policy usually has a separate deductible – a hurricane deductible – that applies for the wind damage caused by named storms.

For the flood damage that accompanies hurricanes, you need either a separate flood policy altogether or to add a flood insurance endorsement to your policy. A standard homeowners insurance policy doesn’t cover water damage caused by storm surge, and hurricane insurance doesn’t cover storm surge damage, either. (More on that distinction in a bit.)

Hurricane insurance vs. flood insurance

Where hurricane coverage ends and flood insurance begins can be hard to assess, so let’s look at a few sample scenarios.

• Scenario 1: A hurricane hits the coast of Florida and tears the roof off your house. Without its roof and exposed to the hurricane’s torrential rain, the home is flooded. Because the water damage was a result of the wind’s damage to the roof, your hurricane insurance would likely cover both the roof and water-related repairs.
• Scenario 2: A hurricane strikes, but your home stays miraculously intact despite the incredibly strong winds. However, your street is flooding from the storm surge and downpour, and your basement floods. Because hurricane wind damage didn’t create an opening for the flooding, you would need flood insurance to pay for this water damage.
• Scenario 3: This time, a hurricane hits your home and rips an opening in your roof, allowing the downpour into your home. Your street is also flooded from the heavy rains and storm surge. This makes it hard to separate which was the true source of flood damage to the home – the storm surge from the flooded street or the opening in your roof that let all the water in – so your hurricane insurance provider needs to investigate to determine the cause.

These scenarios are meant to be illustrative only. Every insurance company has its own criteria for assessing damage and its source. That’s why, if you live in a region prone to hurricanes and flooding, it’s smart to have both hurricane and flood insurance. You never know when you’ll need them.

How do hurricane deductibles work?

As mentioned earlier, your hurricane deductible is separate from the standard AOP deductible that applies to other covered perils, such as fire, theft, or vandalism claims.

While your general deductible is usually a flat dollar amount, your hurricane deductible is a percentage of the coverage you have for your dwelling. These are usually:

• $500
• 1%
• 2%
• 3%
• 5%
• 10%

So if you have $300,000 in dwelling coverage and a 2% hurricane deductible, your out-of-pocket expense for a hurricane claim would be $6,000.

Your hurricane deductible is triggered by specific conditions outlined in your policy. Generally, a storm declared as a hurricane by the National Weather Service or a named storm triggers this deductible.

Deductible options may vary based on state regulations. For example, Florida insurers are required to offer hurricane deductible options of $500, 2%, 5% and 10%.

Which states have hurricane deductibles?

Currently, 19 states allow some type of specific deductible on their hurricane insurance policy form that applies to hurricane wind damage. State laws influence how high this deductible can be.

For example, Florida requires all insurers to offer hurricane deductible options of $500, 2%, 5%, or 10% of the dwelling property limit in your policy.

Understanding that hurricane insurance has an additional deductible is important to getting the right policy for your home. Higher deductibles can bring down your premium, but that means you’re responsible for more of your losses if you have to file a claim.

Here is a list of the 19 states. Note that the District of Columbia also requires an additional deductible on hurricane insurance.

• Alabama
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Louisiana
• Maine
• Maryland
• Massachusetts
• Mississippi
• New Jersey
• New York
• North Carolina
• Pennsylvania
• Rhode Island
• South Carolina
• Texas
• Virginia

States in Tornado Alley, like Oklahoma, Kansas, Nebraska, Missouri, Iowa, and South Dakota, may also have an additional wind / hail deductible.

Do you need additional hurricane insurance coverage?

Chances are your homeowners’ insurance hurricane coverage doesn’t pay claims for certain kinds of losses. And remember, hurricane insurance isn’t a specific policy. So to really find peace of mind, you may want to investigate other types of insurance policies that can provide coverage for other types of losses.

This impacts your home insurance shopping in two ways. First, you’ll want to identify what perils are covered when you evaluate various companies’ hurricane insurance quotes. If something strikes you as particularly important to have covered, you may need to add it either with an additional policy or an endorsement.

Next, you’ll need to consider how much more the added coverage will cost. Any time you add coverage, your overall insurance costs are likely going to go up.

When should homeowners buy hurricane insurance?

As with any type of insurance, the time to have hurricane insurance is before you need it. That’s why it’s smart to shop for coverage or to switch insurance providers well before hurricane season. Getting a hurricane insurance quote from several homeowners insurance companies is the best first step.

You should also know that insurance companies often put moratoriums, or binding prohibitions, in place before a catastrophic event. This delays your ability to purchase coverage or change insurance companies.

Though moratoriums are infrequent, insurance companies can put one into effect because of approaching hurricanes, tropical storms, wildfires, or other catastrophes.

For example, insurance companies often pause binding hurricane insurance as much as 24 to 48 hours before the storm’s predicted impact.

Tips for buying hurricane insurance

The most important tip for getting the best hurricane insurance is to evaluate your particular situation. Every home has its own set of perils to consider – and every homeowner has to decide how much risk they’re willing to take on. Other tips for buying home insurance hurricane coverage include:

• Choose a hurricane deductible that’s realistic. A higher hurricane deductible reduces your premium, but you’ll be on the hook for more out of pocket expenses when you need to rebuild your home after a storm.
• Don’t wait to buy or switch your coverage. If you’re thinking about buying a policy or switching carriers, do it before hurricane season. You don’t want a moratorium to delay your protection. Get an online quote today.
• Get a windstorm mitigation inspection. Florida home insurance companies are required to offer discounts for wind mitigation efforts. Make sure yours are rewarded! Plus, your inspection will tell you what updates can make your home even more wind resistant – and save you more money on your premiums.

Want more information about hurricane coverage? Check out our state guides:

• Alabama hurricane insurance
• Florida hurricane insurance
• Louisiana hurricane insurance
• Mississippi hurricane insurance
• South Carolina hurricane insurance

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