Hurricane Insurance Coverage Guide

Not only are Florida and Louisiana at high risk of hurricane activity. In fact, hurricanes made landfall in 19 states along the Atlantic and Gulf Coasts. Even if your home is not directly on the coast, wind and rain damage can be catastrophic in inland areas. However, even the best home insurance will not cover all hurricane damage — and it frequently includes exclusions that may not provide you with the necessary protection. If you live in Louisiana or if your home was damaged by Hurricane Ida and you need to file an insurance claim following a hurricane.

Continue reading to learn what kind of hurricane insurance you need to protect your home when you need it the most.

What Insurance Covers Hurricane Damage?

You will need two types of insurance to cover the majority of the damage to your home caused by a hurricane, including flood insurance and a windstorm insurance policy:

  • Flood insurance: A standard homeowners insurance policy will not cover flooding, including water from a storm surge, but flood insurance will. Most major insurance companies offer flood insurance through a partnership with the National Flood Insurance Program, and you can get it through your home insurance agent.
  • Windstorm insurance: Windstorm insurance typically covers damage caused by wind and wind-driven rain, including hurricanes. As a result, if a strong wind tears your shingles off and water leaks through your roof, the damage is usually covered. Some hurricane-prone states, however, will not pay for windstorm damage. You must instead purchase separate windstorm insurance, which covers damage from any strong wind, not just hurricanes. If you live in one of the high-risk coastal states listed below, you should talk to an agent about windstorm insurance.

Technically, there is no such thing as "hurricane insurance." Instead, there are two types of policies available to protect your home from the two main sources of hurricane damage: water and wind. Here are two separate policies that you may need to purchase in order to ensure adequate hurricane coverage for your home. If you have already been affected by a natural disaster, avoid these types of scams after a hurricane.

Who Needs Hurricane Insurance?

The following are the top 15 states that need to invest in hurricane insurance and are most likely to suffer damage during hurricane season:

  • Alabama
  • Connecticut
  • Delaware
  • Florida
  • Georgia
  • Louisiana
  • Maryland
  • Massachusetts
  • Mississippi
  • New Jersey
  • New York
  • Rhode Island
  • South Carolina
  • Texas
  • Virginia

These 15 states are the most likely to receive insurance claims for multiple hurricanes, and a fully covered policy is strongly advised.

Tip: Because insurance policies differ by state, particularly in hurricane-prone areas, you should carefully review your policy and inquire about any limitations on wind and water damage. After all, even homeowners policies that do not exclude hurricanes frequently exclude flood damage caused by rising water. As a result, getting as much coverage as you can afford is critical for protecting your home and finances.

How Much Does Hurricane Insurance Cost?

It's difficult to give an exact figure because hurricane coverage can range from $300 for a modest house in a low-risk area to $15,000 for a luxury home in a high-risk zone. However, the average cost of homeowners insurance is approximately $964 per year, and flood insurance is approximately $672 per year. When all costs are considered, you can expect to pay around $1,646 to protect your home from a hurricane.

What Factors Affect the Cost of Hurricane Insurance

  • Which state you live in
  • The value of your home
  • The proximity of your home to a body of water.
  • The amount of hurricane coverage you need
  • How much you pay for a deductible

If you live on the coast, you'll need to add wind coverage to your flood and homeowners insurance to be fully protected in the event of a hurricane — and this can be costly. For example, the Texas Windstorm Insurance Association's average yearly rate is $1,700.

The good news is that hurricane insurance is less expensive for renters, with an average annual cost of $168.

Hurricane Deductibles: What You Need to Know

Home insurance deductibles are typically fixed dollar amounts, such as $1,500.

A home insurance deductible is typically a set amount of money, such as $1,500. Wind, named storm, and hurricane deductibles, on the other hand, are usually percentage-based. They typically range from 1% to 5%, but they can be higher in high-risk coastal areas. For example, if your home is insured for $500,000 and you file a claim, you may be liable for the first $25,000 in damages, which will be deducted from your payment.

Hurricane deductibles, on the other hand, aren't always calculated as a percentage. If you live in Florida, for example, you must be given the option of a $500 flat-rate hurricane deductible. However, in this case, you'd have to pay a higher monthly premium than if you chose one of the other required options: 2%, 5%, or 10% of the insured value of your home.

The following 19 coastal states and Washington, D.C. permit insurance companies to charge special deductibles for hurricane damage; full details of each state's policies are available here.

  • Alabama
  • Connecticut
  • Delaware
  • Florida
  • Georgia
  • Hawaii
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Mississippi
  • New Jersey
  • New York
  • North Carolina
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • Texas
  • Virginia
  • Washington DC

Finally, in order for the deductible to be triggered, the storm must be a named hurricane as well as meet certain other conditions, such as reaching land. Check with your agent to ensure you understand the deductibles that apply to your policy and when they may be triggered.

Tips for Buying Hurricane Insurance Coverage

Do you want to have the assurance that your home is adequately protected from hurricanes? Here's what you should know:

  • Examine your policy: If you purchase home, flood, or windstorm insurance — or all three — make sure you have enough coverage to cover the full cost of rebuilding your home and replacing your belongings.
  • Don’t delay: Most flood insurance policies require a 30-day waiting period between the time you buy and the time coverage begins. Enroll in a policy with adequate coverage before hurricane season arrives to ensure your home is protected.
  • Examine the expiration date: Because your policy will be up for renewal on an annual basis, you may be able to save money by comparing quotes to find a lower rate for the same coverage.
  • Understand your deductible: As previously stated, not all policies include a separate hurricane deductible. If yours does, make sure you understand how it works and how much you'll be responsible for.
  • Insure for full replacement cost: Because the cost of building a home frequently exceeds its market value, insuring your home for its replacement cost will provide you with more protection.
  • Check for wind-damage exclusions: Some home insurance policies do not cover windstorm damage, particularly in hurricane-prone states like Louisiana, Texas, and Florida. If your policy does not cover wind damage, windstorm insurance will protect your home.