Understanding Hurricane Insurance Add-ons
Hurricane insurance is not a single policy, but rather a combination of coverage for wind and water damage. Homeowners in coastal areas need to ensure they have adequate protection against hurricane damage.
What Does Standard Homeowners Insurance Cover?
Standard homeowners insurance policies typically cover damage caused by wind, including hurricanes, in most states. However, policies often exclude flood damage, including water from storm surges. Separate policies are usually required for flood and windstorm coverage.
Types of Hurricane Insurance Add-ons
– Flood Insurance: Covers damage from flooding, including storm surges. The National Flood Insurance Program (NFIP) offers flood insurance policies, and private insurers also provide coverage.
– Windstorm Insurance: Covers damage from strong winds, including hurricanes. Some states require separate windstorm policies for coastal areas.
Deductibles for Hurricane Insurance
– Windstorm Deductible: Applies to damage from strong winds, including hurricanes.
– Named Storm Deductible: Triggered by storms named by the National Weather Service or National Hurricane Center.
– Hurricane Deductible: Only triggered by storms categorized as hurricanes.
Deductibles for hurricane insurance are typically a percentage of the home’s dwelling coverage limit, ranging from 1% to 5%.
Cost of Hurricane Insurance
The average cost of homeowners insurance in the US is $2,110 per year. The average federal flood insurance policy costs $899 per year. Windstorm insurance costs vary by state and insurer.
Tips for Buying Hurricane Insurance
– Get Enough Coverage: Ensure coverage limits are sufficient to rebuild or replace your home and belongings.
– Don’t Wait: Flood insurance policies usually have a 30-day waiting period before coverage takes effect.
– Shop Around: Compare insurance quotes to find the best rates for your coverage needs.
States Allowing Special Deductibles for Hurricane Damage
The following states allow insurers to charge special deductibles for hurricane damage¹:
– Alabama: 1%, 2%, 5%, and 10% deductible options
– Connecticut: Windstorm deductibles apply
– Delaware: Special deductibles allowed
– Florida: 2%, 5%, and 10% deductible options, with a single-season hurricane deductible
– Georgia: Windstorm deductibles apply
– Hawaii: Special deductibles allowed
– Louisiana: Special deductibles allowed
– Maine: Special deductibles allowed
– Maryland: Windstorm deductibles apply
– Massachusetts: Mandatory wind deductibles for coastal residents
– Mississippi: Windstorm deductibles apply
– New Jersey: Windstorm deductibles apply
– New York: 1% to 5% deductible options
– North Carolina: Special deductibles allowed
– Pennsylvania: Special deductibles allowed
– Rhode Island: Windstorm deductibles capped at 5% of insured value
– South Carolina: Windstorm deductibles apply
– Texas: Special deductibles allowed
– Virginia: Windstorm deductibles apply