Hurricane Insurance – Do You Need It?
Joy Wallet is advertiser-supported: we may earn compensation from the products and offers mentioned in this article. However, any expressed opinions are our own and aren't influenced by compensation. To read our full disclosure, click here.
The hurricane season in some states runs for six months, and if you live in one of those states, you already know the kind of damage it can do to your home. It is not easy mentally and financially to recover from the damages caused by a hurricane, but there is a way you can protect yourself and your finances: hurricane insurance.
In this article
What is hurricane insurance?
Hurricane insurance is a type of insurance coverage specifically designed to protect individuals, businesses, and properties in areas vulnerable to hurricanes and tropical storms. It typically provides financial assistance to policyholders in the event of damage caused by hurricanes, including wind damage, flooding, storm surge, and other related perils.
This type of insurance can cover various aspects, including repairing or replacing damaged structures such as homes, buildings, and other property, as well as covering the cost of temporary accommodations if a home becomes uninhabitable due to hurricane damage. Additionally, it may provide coverage for personal belongings, loss of income, and other expenses incurred due to a hurricane.
Hurricane insurance policies can vary in terms of coverage limits, deductibles, and exclusions, so it's essential for individuals and businesses in hurricane-prone areas to carefully review and understand their policy terms to ensure they have adequate protection against potential storm damage.
Why do millions of Americans trust LendingTree?
- 300+top-rated lenders
- $260Bin funded loans
- 111M Americans served
Inclusions of hurricane insurance
Hurricane insurance typically includes coverage for various aspects related to hurricane damage. Here are some common inclusions:
- Wind damage. This coverage helps repair or replace structures such as homes, buildings, roofs, and other property damaged by hurricane-force winds.
- Flood damage. Many standard insurance policies exclude coverage for flooding, so hurricane insurance often includes coverage for flood damage caused by hurricanes or tropical storms. This can include damage from storm surges, heavy rainfall, and overflowing bodies of water.
- Storm surge. Storm surge occurs when hurricanes push ocean water inland, causing flooding and significant damage to coastal areas. Hurricane insurance may cover damage caused by storm surges, including structural damage and damage to personal property.
- Additional living expenses (ALE). If your home becomes uninhabitable due to hurricane damage, ALE coverage can help cover the cost of temporary accommodations, such as hotel stays, rental properties, and meals.
- Personal property coverage. Hurricane insurance may cover personal belongings damaged or destroyed by the storm, including furniture, electronics, clothing, and other items.
- Debris removal. Coverage for the cost of removing debris left behind by the hurricane, including fallen trees, damaged structures, and other debris that poses a safety hazard or impedes recovery efforts.
- Loss of income. Some policies include coverage for loss of income if your business cannot operate due to hurricane damage, helping offset the financial impact of business interruption.
- Emergency repairs. Coverage for emergency repairs to prevent further damage to your property, such as tarping roofs, boarding up windows, and other temporary repairs.
Exclusions of hurricane insurance
While hurricane insurance provides crucial coverage for various types of damage caused by hurricanes and tropical storms, certain exclusions may apply. Here are some common exclusions from hurricane insurance policies:
- Earthquake damage. Damage caused by earthquakes, including shaking, tremors, and landslides, is typically excluded from hurricane coverage. Separate earthquake insurance may be required for coverage.
- Maintenance issues. Damage from lack of maintenance or neglect, such as pre-existing structural issues or failure to properly secure property, may not be covered by hurricane insurance.
- Non-structural damage. Some policies may exclude coverage for damage to landscaping, fences, swimming pools, and other non-structural property elements.
- Secondary damage. Damage caused by mold, mildew, rot, or other secondary effects of hurricane damage may not be covered unless explicitly included in the policy.
- Business interruption. While some policies include coverage for loss of income due to business interruption, certain exclusions may apply, such as if the business was already experiencing financial difficulties prior to the hurricane.
- Government action. Damage resulting from government action, such as mandatory evacuations or orders to demolish or repair damaged structures, may not be covered.
- Certain personal property. High-value items such as jewelry, art, and collectibles may have limited coverage under standard hurricane insurance policies. Additional coverage or endorsements may be necessary to fully protect these items.
- Intentional acts. Damage caused intentionally by the policyholder or others is typically excluded from coverage.
Who needs hurricane insurance?
Hurricane insurance is essential for individuals, businesses, and property owners located in regions prone to hurricanes and tropical storms. Here are some groups of people who may benefit from having hurricane insurance:
Homeowners
Homeowners in coastal areas or regions prone to hurricanes should strongly consider purchasing hurricane insurance to protect their homes and belongings from wind damage, flooding, and other storm-related perils.
Renters
Even if you don't own the property you live in, renters insurance policies can provide coverage for your personal belongings in the event of hurricane damage. Renters should consider purchasing a policy that includes hurricane coverage and other natural disasters.
Business owners
Businesses located in high-risk areas can suffer significant financial losses due to property damage, business interruption, and income loss resulting from hurricanes. Therefore, business owners should have adequate insurance coverage to protect their assets and operations.
Landlords
Property owners who rent out residential or commercial properties should ensure they have adequate insurance coverage to protect their investments from hurricane damage. This may include coverage for structural damage, loss of rental income, and liability protection.
Condo owners
Condominium owners may have unique insurance needs, as they typically share ownership of common areas and building structures with other unit owners. Condo owners should review their association's master insurance policy and consider purchasing additional coverage for their units.
Vacation homeowners
Owners of vacation homes or second homes located in hurricane-prone areas should have insurance coverage to protect their property from storm damage, even if the home is not their primary residence.
Businesses with specialized risks
Certain businesses, such as those that rely on outdoor equipment or operate in areas vulnerable to flooding, may face high risk during hurricane season. These businesses may need specialized insurance coverage tailored to their unique risks and circumstances.
Why do millions of Americans trust LendingTree?
- 300+top-rated lenders
- $260Bin funded loans
- 111M Americans served
Does homeowners insurance cover hurricane damage?
Homeowners insurance typically provides coverage for certain types of damage caused by hurricanes, but the extent of coverage can vary depending on the specific policy and the insurance provider. Here's how homeowners insurance generally applies to hurricane damage:
- Wind damage. Most standard homeowners insurance policies include coverage for wind damage, including damage caused by hurricane-force winds. This coverage typically applies to the home's structure, including the roof, walls, and windows.
- Water damage. Homeowners insurance usually covers water damage from sudden and accidental events, such as a roof damaged by wind allowing rainwater to enter the home. However, flooding from storm surges or rising waters is typically excluded from standard home insurance policies and requires separate flood insurance.
- Additional living expenses (ALE). If your home becomes uninhabitable due to hurricane damage, homeowners insurance may provide coverage for additional living expenses, such as temporary accommodation costs, food, and other essentials.
- Personal property. Homeowners insurance typically covers personal belongings damaged or destroyed by hurricane-related events, such as wind-driven rain damaging furniture, electronics, and clothing. However, coverage limits and insurance deductibles may apply.
Homeowners in hurricane-prone areas may need to purchase additional coverage or endorsements, such as flood insurance, windstorm insurance, or hurricane insurance, to fully protect their property from hurricane-related risks.
Consulting with an insurance professional can help ensure you have the right coverage to protect your home and belongings from the potential impacts of hurricanes and tropical storms.
Does flood insurance cover hurricane damage?
Flood insurance can cover certain types of damage caused by hurricanes, but it's essential to understand the specific coverage provided by flood insurance policies. Here's how flood insurance typically applies to hurricane damage:
- Coverage for flood damage. Flood insurance is specifically designed to cover damage caused by flooding, including damage from storm surges, heavy rainfall, and overflowing bodies of water such as rivers, lakes, and oceans.
- Structural damage. Flood insurance may provide coverage for structural damage to the insured property, including the building foundation, walls, floors, ceilings, and built-in appliances.
- Personal property. Flood insurance can also cover damage to personal belongings within the insured property, such as furniture, electronics, clothing, and other items. However, coverage limits may apply, and certain high-value items may have limited coverage under standard flood insurance policies.
- Additional living expenses (ALE). If your home becomes uninhabitable due to flood damage, flood insurance may provide coverage for additional living expenses, such as temporary accommodation costs, food, and other essentials.
It's important to note that flood insurance is typically separate from homeowners insurance and must be purchased as a separate policy through the National Flood Insurance Program (NFIP) or from private insurance companies that offer flood insurance.
While flood insurance can provide valuable protection against flood-related damage, it's essential to review your policy carefully to understand what is covered and what is not. Some policies may have limitations and exclusions, so it's crucial to assess your specific needs and consider purchasing additional coverage or endorsements if necessary.
Given the potential for flooding during hurricanes and tropical storms, homeowners and property owners in flood-prone areas should strongly consider purchasing flood insurance to mitigate the financial risks associated with flood damage.
States with hurricane deductibles
Hurricane deductibles are typically included in homeowners insurance policies for properties located in states along the Atlantic coast and the Gulf of Mexico, where hurricanes are more common. Some of the states that commonly have separate deductibles include:
- Florida
- Texas
- Louisiana
- Mississippi
- Alabama
- South Carolina
- North Carolina
- Georgia
- Virginia
However, it's important to note that the specific regulations and requirements for hurricane deductibles can vary by state and even by insurance company. Additionally, some states may have laws governing how hurricane deductibles are applied and under what circumstances they can be triggered.
Before purchasing insurance or making assumptions about coverage, homeowners and property owners must review their policies carefully, understand the terms and conditions of their coverage, and consult with their insurance provider or agent to ensure they have the appropriate coverage for their needs, including any hurricane deductibles that may apply.
Why do millions of Americans trust LendingTree?
- 300+top-rated lenders
- $260Bin funded loans
- 111M Americans served
FAQs
Does homeowners insurance cover hurricane damage?
Homeowners insurance typically provides coverage for certain types of damage caused by hurricanes, such as wind damage. However, coverage for flooding, storm surge, and other hurricane-related perils may require additional insurance, such as flood insurance or specialized hurricane insurance endorsements.
How much does hurricane insurance cost?
The cost of hurricane insurance can vary depending on factors such as the location of the insured property, home’s insured value, construction type, deductible amount, coverage limits, insurance claims history, and insurance provider. Homeowners in hurricane-prone areas can expect to pay several hundred to several thousand dollars annually for hurricane insurance coverage.
How can I purchase hurricane insurance?
Hurricane insurance can be purchased through insurance companies that offer homeowners insurance, renters insurance, or specialized hurricane insurance policies. It's essential to compare quotes from multiple providers, review policy terms and coverage options carefully, and consider consulting with an insurance professional to ensure you have the right coverage for your needs.
The bottom line
Hurricane insurance provides critical protection for homeowners, renters, businesses, and property owners in regions prone to hurricanes and tropical storms. While homeowners insurance may cover certain types of hurricane-related damage, such as wind damage, flood insurance is typically necessary to protect against flood-related damage, including storm surges and heavy rainfall.
It's essential to carefully review your insurance policies, understand what is covered and what is not, and consider purchasing additional coverage or endorsements to fill any gaps in coverage. Consulting with an insurance professional can help ensure you have the right protection to safeguard your property and belongings against the potentially devastating impacts of hurricanes and tropical storms.
Joy Wallet is an independent publisher and comparison service, not an investment advisor, financial advisor, loan broker, insurance producer, or insurance broker. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. Joy Wallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. We encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Featured estimates are based on past market performance, and past performance is not a guarantee of future performance.
Our site doesn’t feature every company or financial product available on the market. We are compensated by our partners, which may influence which products we review and write about (and where those products appear on our site), but it in no way affects our recommendations or advice. Our editorials are grounded on independent research. Our partners cannot pay us to guarantee favorable reviews of their products or services.
We value your privacy. We work with trusted partners to provide relevant advertising based on information about your use of Joy Wallet’s and third-party websites and applications. This includes, but is not limited to, sharing information about your web browsing activities with Meta (Facebook) and Google. All of the web browsing information that is shared is anonymized. To learn more, click on our Privacy Policy link.
Images appearing across JoyWallet are courtesy of shutterstock.com.
Share this article
