What Does Hurricane Insurance Cover?
Hurricanes and tropical storms are natural disasters responsible for many types of threats to your home and personal belongings. Standard homeowners insurance doesn’t cover all possible types of damage.
You need the right combination of insurance policies to cover common hurricane hazards, such as storm surge, heavy rainfall, flooding, high winds, and tornadoes.
Storm Surges
A storm surge is when the water rises substantially because of a storm’s winds. In some cases, the water can reach 20 feet or more above normal. A storm surge can also cover hundreds of miles of coastline.
As you can imagine, storm surges can cause significant destruction. Unfortunately, a typical homeowners insurance policy does not cover storm surges.
Adding a flood insurance policy to your collection of hurricane insurance products can protect against storm surge.
If you already have homeowners insurance, you may have the option to add flood insurance as an endorsement. Stand-alone policies are also available from private insurers and the National Flood Insurance Program (NFIP).
Heavy Rains and Flood
Heavy rains can quickly lead to flooding when a hurricane hits. A few inches of water can cause a flood. However, you’ll see at least six to 12 inches of rainfall during a typical hurricane.
According to the Insurance Information Institute (III), homeowners and renters insurance does not cover destruction caused by flooding. Therefore, you need a flood insurance policy to cover water damage from flooding.
Remember that flood insurance isn’t the same as a homeowners policy or renters insurance. It has its own policy and requires a separate application. You can buy a flood policy from your property insurance company or directly from an NFIP participating agent.
Sewer Backup
There are different types of sewer backups you may experience as a homeowner. Aging sewer systems, combined pipelines, and tree roots are common sources of trouble. A water backup coverage endorsement from your homeowners insurance company usually covers those common causes.
However, floodwaters can enter a sewer system as a hurricane passes through the area. A homeowners policy won’t cover sewer backup caused by flooding, even if you have a water backup endorsement.
Like with storm surges and heavy rains, flood insurance can protect you from this hurricane hazard.
Water from a sewer backup can lead to thousands of dollars in damage to floors, electrical systems, walls, furniture, and other items. Flood insurance can be a smart investment, especially if you’re in a flood zone or a coastal area, such as Mississippi, Alabama, Connecticut, or Rhode Island.
High Winds
Hurricane-force winds reach 74 miles per hour or more. They can wreak havoc as they break windows, rip off roofing material and siding, and destroy homes.
Fortunately, a standard homeowners insurance policy typically covers windstorm damage. Your policy may cover hail, fallen trees, and wind-driven rain that gets inside your home when a wall or roof is damaged by wind.
A word of caution if you live in a high-risk area: your insurer may require you to buy separate windstorm insurance.
For instance, some policies in coastal states don’t include windstorm damage. For instance, homeowners may need separate windstorm coverage in Florida. Finding policy options through traditional insurance providers can be difficult in some areas. Citizens Property Insurance Corporation is a nonprofit government agency. It provides coverage as a last resort, including wind-only policies in some areas.
Tornadoes
As if the damage from a hurricane wasn’t enough, the storms can also cause tornadoes. But there is good news: most standard homeowners insurance cover tornadoes.
That’s because insurance companies generally classify tornadoes as windstorms, and windstorm coverage is usually part of a home insurance policy.
There are a few exceptions. So review your policy, and check with your insurance agent to make sure you have the right coverage in place.
Additional Living Expenses
If you can’t live in your home due to damage or destruction, your policy may include coverage for additional living expenses (ALE).
Also called loss of use, this can pay for temporary housing, meals, and other costs while your home is being rebuilt.
But there’s a catch: homeowners insurance provides ALE only for covered losses. Because a typical policy doesn’t cover flooding, it won’t pay if flooding is the reason your home is uninhabitable.
