The National Oceanic and Atmospheric Administration (NOAA) expects a 40 percent chance of experiencing an average of 2023 hurricanes during the season. According to the NOAA, we can expect between 12-17 named storms, with 1-4 of them being potential major hurricanes (categories 3, 4 and 5). Residents of the Atlantic region and the Gulf of Mexico have come to know the difficulties of an active hurricane season, from the preparation of power outages to the pursuit of accommodations along routes of evacuação. Homeowners have additional difficulty securing insurance that covers the damage caused by the wind and floods that typically occurs during the hurricane season.
How much hurricane-covered territory do you want?
Insurance companies don’t sell standalone policies that cover hurricanes, you will need to purchase additional insurance, such as flood insurance, to have sufficient coverage. Depending on your situation or preferred level of financial protection, you may want to consider higher coverage limits or add-ons to your policy that are greater than the standard HO-3 or HO-5 policy provides. Many homeowner’s policies have financial protection against windstorm damage that is:
- Your residence (the composition of the home)
- Separate units (like a shed or separate garage)
- Personal property (the things you own)
- The cost of living if you’re displaced
House coverage
The term ” Dwelling coverage” is used to describe the composition of your home, your roof, additional structures and appliances, such as your water heater or kitchen cabinet, that are built in. Typically, you purchase this insurance that covers the entire cost of rebuilding your home. Since the cost of property replacement has increased by 30.4 percent over the past five years, you may want to consider purchasing supplementary endorsements, such as a guaranteed cost of repairs that will cover the cost of rebuilding if the limit on the policy is exceeded.
Other structures’ coverage
Other structures’ coverage is dedicated to repairing or replacing abandoned structures on your property, these structures include garages, sheds, barns, gazebos, in-ground pools and more. This insurance is based on a percentage, which is typically 10%, of the total value of your home. For instance, if you possess $400,000 in dwelling insurance, you may have as much as $40,000 in coverage for units that are detached.
Personal property insurance
Personal property insurance covers personal assets, such as clothing, furniture and appliances. Typically, the maximum personal property insurance limit is equal to the percentage of your housing insurance limit that is personal property. Many insurance companies offer personal property insurance that is between 50 and 70 percent of the value of your home, according to the Insurance Information Institute (Triple-I).
If you live in a state that has frequent hurricanes, it’s essential to make sure you have sufficient personal property insurance. For the greatest degree of protection, consider covering your belongings at their current cost of replacement instead of their actual cash value, this will allow you to replace them with a new item of the same value.
Extra costs of living
Homeowners insurance pays for additional costs if you’re displaced temporarily due to a covered catastrophe, such as a hurricane. Your policy may compensate you for the expense of accommodations and food while your home is being mended. The maximum coverage limit for additional living expenses is sometimes a default value determined by the insurance company, but you can often increase the value to have more protection.
How does the process of hiring a deductible insurance company work for homeowners?
If your homeowner’s insurance covers the cost of wind damage or other hurricane-related damage, then the claims may be subject to a separate deductible. These deductibles are typically higher than the standard homeowner’s insurance rate, and are set at a percentage that is usually 1% to 5% of your home’s coverage. For instance, if you have been covered for $400,000 and your hurricane deductible is 5%, then you may need to pay $20,000 in deductibles, which would be subtracted from your payment.
Are you in need of a hurricane-related deduction?
All of the Atlantic and Gulf Coast states, as well as Pennsylvania, Washington, D.C. and Hawaii have separate requirements for insurance companies regarding the need for a separate hurricane deductible, according to the Insurance Information Institute (Triple-I). It’s possible that you could pay a higher rate to lower your predetermined deductible.
Hurricane deductibles are typically caused by a hurricane watch or warning that is issued by the National Weather Service, but state-specific triggers and insurance company-specific rules can lead to slightly different scenarios. While hurricane-related insurance may be more expensive than your typical home insurance, the insurance is crucial to protect those in high-risk areas for hurricanes.
What states have insurance for hurricanes?
Nineteen states and Washington, D.C., have provisions for hurricane-related losses.
- Alabama
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Louisiana
- Maine
- Maryland
- Massachusetts
- Mississippi
- New Jersey
- New York
- North Carolina
- Pennsylvania
- Rhode Island
- South Carolina
- Texas
- Virginia
- Washington, D.C.
Other hurricane-related coverage options that should be considered
Flood insurance
Some homeowners may be misled by the common perception that flooding is not covered by standard homeowners insurance. This is why many creditors require homeowners to have flood insurance if they have a mortgage. One popular method of receiving flood insurance is through the National Flood Insurance Program (NFIP).
NFIP policies offer up to $250,000 in housing assistance and $100,000 in personal property insurance for domestic homes. Before your insurance is effective, there is a 30-day period of waiting, except in a few exceptional cases. Additionally, the premiums associated with NFIP flood insurance should be paid for directly and entire, rather than monthly payments. Many individual airlines also have flood insurance now, the waiting periods may be different from policies that are backed by the NFIP. Private flood policies typically have higher maximum dwelling and personal space limitations than NFIP policies, these limitations are also increased for additional expenses.
Catastrophic flooding associated with hurricanes is also possible in inland communities, this has been seen in recent storms. More than 20% of the flood claims made by properties in America are from areas that are outside of the high-risk federal flood zones, according to FEMA. Because of this, it’s perhaps more effective to err on the side of caution and purchase flood insurance if your region is susceptible to flooding. Otherwise, you would have to pay the entire bill if your home was flooded by water, says Sara Singhas, the director of Mortgage Bankers Association.
Windstorm insurance
Some insurance companies prohibit or limit the damage caused by wind in areas that are prone to hurricane and tornado damage. Homeowners can purchase wind insurance as an extra endorsement from their current energy provider. If this is not the case, they may need to enroll in a stand-alone policy for windstorms. Windstorm policies typically have a deductible of 1, 2, 5 or 10 percent of the home insurance coverage. Other insurance companies also provide a standard flat rate for “named storms,” this allows homeowners to avoid having to pay a high rate for the damage caused by smaller storms.
Many homeowners seek out windstorm-related policies through government-backed programs like the Louisiana Citizens Property Insurance. By statute, these policies have a higher premium than the private sector’s policies, but they can be a lifelong solution to the problem of homeowners without other options.
Water insurance coverage
Sewage overflows are not something you want to contemplate following a hurricane, but they may occur as a result of flood. Water backup coverage helps to preserve your home and personal assets from water damage if sewage water flows into your home through your ploming or sump pump.
Debris removal protection
Homeowners insurance typically covers the cost of debris removal if, for example, a tree impales your home. However, the coverage is typically limited to a specific volume. After a hurricane, it’s simple to exceed the limit on debris removal, so you may want to check if your insurance provider offers a coverage extension to increase your amount of debris removal compensation.
How to plan for the aftermath of a hurricane and make a home insurance claim.
To preface a claim for insurance following a hurricane, there are several actions you can take. Take pictures and videos of the interior and exterior of your home on a regular basis ( Every six months to a year ) to document the state of your home and what is in it. If you’ve undertaken significant renovations or repairs, make a list of everything you’ve done, plus the documentation associated with them all, and submit this to the cloud so you can access it from afar.
After a storm, it may take a few days for an insurance adjuster to visit your home in order to document everything as precisely as possible. Moss suggests that having your own documentation can facilitate the faster processing of claims and reduce the potential for disputes.
Does it have to be a hurricane if I live in a condo or rent it?
When it comes to hurricane protection, renters insurance is just as important as homeowners insurance, but there are two different situations. If you live in an apartment, your landlord is responsible for the building, but you still need to have insurance for your personal effects and additional expenses living in the apartment. The insurance for renters covers loss of property due to floods, but it does not cover the cost of damages caused by floods in areas that are prone to them, this can be purchased through the National Flood Insurance Program or a separate insurance company.
If you have a condo, find out what areas of the structure are covered by the association and what you will need to protect. Other than your personal items, you may also have to contribute to the funding of a portion of the repairs to the destroyed structure. Discuss your purchase with your attorney or property manager before purchasing, and find out what kind of coverage you need under your condo insurance policy. You may also want to have your insurance agent evaluate the master condos policy in order to help you figure out what additional coverage is necessary for complete financial protection. You may need to create separate flood and windstorm policies that cover the damage of personal property and attached devices inside your home.
