Hurricane Insurance Information
If you live on the hurricane-prone east or south coasts of the United States, check your homeowner's policy to find out if it provides any coverage for hurricane damage. You may need a hurricane insurance policy, in addition to basic homeowner's and flood insurance, to cover all losses.
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Coverage Basics
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A hurricane may cause both wind and flood damage, but homeowner's insurance doesn't always cover both. Some policies cover water damage directly resulting from wind damage--for example, if a front door is ripped off its hinges by hurricane winds, allowing rain water to flood the living room. Your homeowner's policy may exclude hurricane damage. In that case, you'll need a hurricane insurance policy to reimburse you for wind damage and a flood insurance policy to reimburse you for flood damage.
Additional Living Expenses
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One option in a hurricane insurance policy, additional living expenses (ALE), provides you with funds to pay for a temporary place to stay, such as a hotel room, if your home is unlivable. If you rent part of your home, the policy may also pay you for the lost income while you are unable to collect rent due to damages. This option is not automatically added to all policies, so you'll need to request it and determine how much of this type of coverage you'll need.
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Know Your Needs
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If you've made home improvements or built an addition since you originally bought your insurance policies, update your coverage amount to reflect your home's increased worth. Make sure your policy provides enough coverage to rebuild your home and replace all your belongings.
Insurance Costs
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Rates for hurricane insurance vary widely, even within a state, and depend on risk factors and the insuring company. For instance, in Florida, a $150,000 policy with a standard 2 percent deductible, no wind mitigation measures and no homeowner's insurance claims in the past three years would cost between $1,357 and $5,506 for a home in Escambia County, between $773 and $1,697 in Saint Johns County and between $2,917 and $8,082 in Miami-Dade County. (Note that these are the rates for a home constructed before 2001.) Premiums may be lowered by instituting wind mitigation measures on the structure. Some companies may not issue new policies in your county.
Filing a Claim
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When a hurricane damages your home, report the damage to your insurance company immediately. Some policies have time limits for filing a claim. Describe the severity and type of damages so the company can provide the appropriate forms and assign an adjuster. The company sends adjusters to the most severely damaged homes first, so be detailed and specific about the damage, but don't exaggerate. Complete and return the paperwork immediately.
Documenting Losses
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It's your job to document your losses. Start before the storms by creating a home inventory of items owned and keeping the receipts for major purchases in a safe deposit box or other safe location. After the hurricane, take photos and video of all damage. Provide all of this information to your insurance company, as soon as possible.
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References
- Chiff: Hurricane Insurance Tips, Advice, Guides & Information
- FiveCentNickel: The High Cost of Hurricane Insurance
- Insurance Information Institute: Protect Yourself, Your Family and Your Property This Hurricane Season
- CNN: Hurricane Insurance: 5 Tips: What you need to know about insurance after a disaster
- ShopandCompareRates
Resources
- Photo Credit hurricane katrina image by jcpjr from Fotolia.com
