Most Atlantic coast hurricanes have a season between June and November. Between August and October, the likelihood of storms peaking is high. If you are on the East and Gulf Coasts, you are at a higher risk of hurricane damage. Is your home adequately insured? The high risk of hurricane damage makes hurricane insurance a worthwhile investment. This guide will examine hurricane insurance and why it is a valuable investment.
What is hurricane insurance?
Your standard home insurance is likely to cover damage from high winds. However, the typical homeowner's insurance does not cover damage from hurricanes. This means you might need additional hurricane insurance, which may be wind or flood insurance.
In reality, hurricane insurance is not a separate product for purchase. So, insurers do not sell hurricane insurance policies. In some states, you won't find coverage named hurricane insurance. Instead, you may find it as a deductible on a homeowners insurance policy in the form of wind or flood insurance. Hurricane deductibles are a percentage of the insured property, ranging from 1 to 5 per cent of the home's insured value.
Home insurance policies in states susceptible to storms often include hurricane deductibles. These deductibles kick in when the named storm causes damage. You would know this, but even for insurance companies, hurricanes are expensive. So, they insist on deductibles to minimize their losses.
Should you invest in hurricane insurance?
Do you think your property is not vulnerable to hurricane damage? According to experts, a category-5 hurricane has a wind speed of over 156 mph. This wind is enough to cause hurricane flooding that could last weeks, often creating mold problems. In the last 50 years, storm surges from hurricanes have caused 90% of all hurricane-related deaths.
If your residence is in a catastrophe-prone area, you will need protection from hurricane damage. When a hurricane hits, people incur billions in losses. Most of this damage comes from wind and flooding, two things you won't get coverage for with regular homeowner insurance. You can protect your property from these losses with insurance. Your mortgage driver will always ask you to get hurricane coverage, depending on the risks in your area.
Before you invest in hurricane insurance, determine your property's vulnerability to hurricanes. Does your property sit in low-lying areas, such as along the coast, with a high risk of hurricane damage? If that's the case, investing in hurricane insurance is a must. Nowadays, more people are at greater risk of dangerous storms due to climate change, making the decision even more vital.
What is covered in the hurricane insurance?
Your homeowner's policy does not cover hurricane damage, so you need extra coverage. Getting hurricane insurance means getting coverage for wind damage or damage from wind-driven rain.
However, before getting that coverage, read its fine print in detail. Look for the inclusion of any limitations on water damage, as is the case with some insurance policies. More insurers have excluded hurricane damage, requiring homeowners to purchase hurricane insurance as supplemental coverage.
We've established that this extra coverage is necessary. But how much is the hurricane insurance? Since you can't buy a hurricane insurance policy, you will pay the additional cost through wind and flood coverage. The cost of purchasing hurricane insurance varies depending on a place's riskiness. Coverage for a moderate home in a low-risk area will cost less than for a luxury home in a high-risk area.
Get home insurance
Getting hurricane insurance sounds like a sound investment. Do not wait until the 11th hour to get hurricane insurance. You may miss out on the proper coverage because some policies are delayed in going into effect. Before the start of hurricane season, focus on assessing your insurance needs and getting your insurance in place. Find an expert to guide you if you are undecided about getting hurricane insurance. Trained specialists can help you get the proper coverage.