Natural disasters like hurricanes can be life-changing experiences that could leave us helpless and vulnerable. No matter how much we prepare, we’re often left with damage to our homes, cars, and belongings.
We need homeowners insurance to protect ourselves from the financial losses that come from hurricane damage. However, not all insurance policies are created equal.
In this 2023 Hurricane Insurance Guide, we’ll compare hurricane insurance with flood insurance, explore the costs and benefits of hurricane insurance, and help you make informed decisions to protect you against financial losses during hurricane season.
HURRICANE INSURANCE VS. FLOOD INSURANCE
If you’re new to insurance, you may wonder if hurricane insurance is the same as flood insurance. The short answer? No, hurricane insurance is not the same as flood insurance.
Hurricane insurance covers damages caused by high winds, falling debris, and rainwater, while flood insurance covers damages caused by rising water levels. Though both types of insurance policies are commonly needed in hurricane-prone areas, their coverage differs significantly.
While homeowners insurance policies often exclude flood protection, homeowners living in high-risk areas may be required to purchase flood insurance, especially if they have a mortgage on their home. And though some homeowners may find it costly to buy two separate policies, reviewing your insurance policy and determining what coverage is included and what policies need to be added is recommended. Unfortunately, a lack of proper coverage can lead to significant financial losses.
CAN YOU BUY HURRICANE INSURANCE?
Yes, you can. Most homeowners insurance policies cover some hurricane-related damages. Hurricane insurance can be an add-on to your policy, or in some cases, you can buy a separate policy to cover the damages to your home, belongings, and other property caused by the hurricane.
If you already have hurricane insurance, make sure your wind damage policy is up-to-date in the event a hurricane does it. Securing the proper coverage for your home in the event of a windstorm is crucial.
Most home insurance policies in Florida provide protection from hurricanes and other wind damage, but it is tough to find this type of complete coverage in some locations like the Florida Keys. Homeowners in these types of areas purchase a “wind only” policy in addition to a more comprehensive home or dwelling policy. Depending on where you live and the level of exposure to risky weather events often determines the type of coverage available.
No matter what, never assume that your current policy covers all instances; consult with your provider today to ensure that you’re properly protected from severe weather events whenever they occur.
IS HURRICANE INSURANCE EXPENSIVE?
The cost of hurricane insurance depends on several factors, such as your geographic location, the amount of coverage you need, the type of property you’d like to insure, and the insurance provider you choose. As you’d guess, areas that are more vulnerable to hurricanes may have higher insurance premiums than low-risk areas.
DO RENTERS NEED HURRICANE INSURANCE?
Hurricanes can bring significant damage to rental properties, forcing many renters to seek help with their losses. While the landlord is likely insured — which handles building damages — they aren’t responsible for any damages to your belongings in your unit.
For that, you would need renters insurance. Having protection through renters insurance may ease some of the financial burden brought on by inclement weather and give you peace of mind.
WHAT ARE ADDITIONAL LIVING EXPENSES (ALE)?
Additional living expenses, or ALE, are an important part of any home insurance policy. When a home is devastated by bad weather or other disasters, it can be intimidating to face the amount of money it would cost to make repairs — not to mention the cost of relocating for the duration of said repairs.
ALE protection takes care of these costs, including things like basic accommodation, food costs incurred while away from home, and even laundry bills. All policies have different limits and exclusions surrounding this coverage, so it’s best to check on what your plan says before an event happens that requires you to use your ALE coverage.
HURRICANE INSURANCE GUIDE BUYING TIPS
Hurricanes are among the most destructive natural calamities, and Florida is prone to such catastrophic weather events. If you live in Florida, you need to prepare by securing your home and properties with the right insurance coverage.
However, navigating the complex insurance landscape can be daunting for first-time shoppers. That’s why we’re here with buying tips that will help you make the right choice for your needs.
- ● Understand your needs: Hurricane insurance policies vary depending on various factors, such as the location, type of property, and coverage limits. Before you shop for insurance policies, assess your needs, and determine the risks you are vulnerable to. Consider the potential damage that could occur in case of a hurricane, property value, and the amount of coverage required to rebuild your home or replace your belongings.
- ● Compare coverage options: When buying hurricane insurance, it’s essential to compare coverage options from different insurance companies. This way, you can find the best policy that meets your needs and budget. Look beyond the basic coverage options and consider additional coverage for floods, wind, and other hurricane-related risks.
- ● Check for discounts: Insurance companies offer various discounts that can reduce your premiums. For example, installing storm shutters, impact-resistant garage doors, or a new roof may help save on you money on your policy. Bundling multiple policies such as homeowners and auto insurance with the same insurer could earn you a discount.
- ● Work with a reputable insurance broker: Navigating the complicated insurance landscape can be overwhelming, especially for new homeowners. An experienced and reputable insurance broker can guide you through the process, help you find the best policy, and ensure you get the right coverage options. A broker can also provide you with valuable advice on how to file and handle claims in case of a hurricane.
- ● Read the fine print: Before signing up for any insurance policy, take the time to read and understand the contract’s fine print. Look out for exclusions and conditions that could limit your coverage, such as flood insurance exclusions or windstorm deductibles. If you have questions, ask your insurer or insurance broker for clarification.
Although unpredictable and challenging to prepare for, natural disasters like hurricanes can be less stressful and less economically challenging when you’re adequately insured. While some may find hurricane and flood insurance to be expensive, they provide peace of mind should anything happen to your property. With the correct information, you can protect yourself financially against loss and rebuild your life quickly if the unforeseen ever occurs.
If you need help finding the best hurricane insurance coverage for the best price, start by speaking to a SimplyIOA agent at 833.872.4467 or get a hurricane insurance quote online now.
