A Hurricane Insurance Policy
Homeowner’s insurance does not cover floods, earthquakes, or hurricane damage. Just like you need to purchase flood and earthquake insurance separately, you also must purchase hurricane insurance. This is important for you if you live in a high-risk hurricane area. It is reported that insurance companies spent over $158.6 billion covering losses caused by hurricanes and storms between 1996 and 2015. If you were to experience hurricane damage, you would not want to pay all the costs on your own.
Some home insurance companies on the East Coast might add hurricane damage to a traditional homeowner’s policy, but a higher deductible would result. Insurers set deductibles at a percentage of your home’s value, meaning the value of your home affects your deductible. If your insurer does not include hurricane coverage, then you must purchase it on your own.
How Coverage Works
Water damage and wind damage are the main problems caused by hurricanes. Most standard home insurance policies cover wind damage but flood damage is not included. The hurricane policy will cover any water damage following the high winds. It also includes the replacement costs for anything destroyed by the flood.
It is important to get enough hurricane insurance coverage. This is especially true if you live in a high-risk area. But before you start searching for hurricane coverage, ask your homeowner’s insurance provider about their coverage options.