What Type of Insurance Do You Need to Cover Hurricane Damage?

A hurricane can cause severe damage to your home and may even completely destroy it. A standard homeowners insurance policy won’t cover all hurricane-related damage, and there is no such thing as a “hurricane insurance policy.” Your homeowners insurance may cover some types of damage, but you may have to purchase additional insurance to be fully covered.

What Homeowners Insurance Does and Doesn’t Cover

A standard homeowners insurance policy doesn’t cover flooding or water damage caused by storm surge. Homeowners insurance generally covers damage caused by wind, including a hurricane. If you live in a coastal area that is at high risk for hurricanes, however, exclusions may apply. You may have to add a rider to your homeowners insurance policy to cover wind damage or buy a separate windstorm policy.

How to Get Coverage for Hurricane Damage

You can purchase a flood insurance policy through the National Flood Insurance Program or from a private insurance company. Your homeowners insurance company may have an arrangement with the NFIP and may be able to help you buy flood insurance. 

Windstorm insurance will cover damage caused by a hurricane, tornado, tropical storm or tropical depression. If you decide to buy flood and/or windstorm insurance, make sure that you get enough coverage to rebuild your house if it gets completely destroyed by a hurricane.

How Deductibles for Wind Damage Can Work

The deductible is the amount that you have to pay out of pocket before your insurance company will issue payment for a covered claim. In some cases, an insurance company has different deductibles for windstorm claims (which may include tornadoes and other types of windstorms), storms that have been named by the National Weather Service or the National Hurricane Center, and storms with high enough winds to be categorized as hurricanes. 

Unlike typical homeowners insurance deductibles, the deductibles for wind-related damage are often a percentage of the house’s insured value, not a flat dollar amount. If you buy an insurance policy that covers wind damage, the deductible will depend on the insurance company and the state where your home is located.

Get Ready for Hurricane Season

There will generally be a 30-day waiting period between when you buy flood insurance and the date when it will go into effect. That means you won’t be able to buy flood insurance shortly before a hurricane hits and have damage to your home covered. Windstorm and homeowners insurance policies also typically have waiting periods, although they may be shorter. 

The Atlantic hurricane season runs from June 1 to November 30. Don’t wait too long to act. Review your insurance coverage now and purchase additional coverage, if necessary, so you will be prepared.