Protecting Your Home with Hurricane Insurance

Posted May 24th, 2016 by Rob Anderson

Your home is where your money is. You have a homeowner's insurance policy to protect your most valuable asset.

No home insurance policy will pay for each kind of hurricane damage. If you live in an area prone to hurricanes, understanding your homeowner's policy is the key to finding the correct storm coverage.

Water and the wind are the two main problems hurricanes bring. You may need to purchase separate policies to cover hurricane damage:

No homeowner's insurance policy covers floods; this includes water from storm surge. To get the complete coverage, you need to buy flood coverage.

In some hurricane-prone states, homeowner's insurance policies won’t pay for windstorm damage. If you live in one of these states and want coverage, buy separate windstorm insurance.

A homeowners insurance won’t cover flooding. The National Flood Insurance Program provides insurance against flooding to homeowners. Many insurers offer flood insurance through the NFIP. Often you can buy it from your home insurance agent.

In most states, standard homeowners policies cover damage caused by the wind. You might need to buy windstorm insurance if you live in a coastal region. Your insurance company or a state-run insurance pool will provide these types of policies. You may also be able to add a rider to your current policy. Windstorm insurance covers damage from any high wind, not just hurricanes.

Often insurers impose a separate windstorm or hurricane deductible. A deductible is an amount taken away from your insurance payout.

Home insurance deductibles are usually a dollar amount, and windstorm deductibles are typically a percentage of your home’s insured value. They typically range from 1% to 5%, though they can be higher in high-risk coastal areas. Your home is currently insured for $500,000, and you have a 5% wind deductible, $25,000 will be deducted from your payment if you file a claim.

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