HOME INSURANCE VS HURRICANE INSURANCE

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    Homeowners insurance and hurricane insurance are not the same, though they can overlap. Homeowners insurance typically covers some hurricane-related damage like wind, but it often excludes flood damage caused by hurricanes. Hurricane insurance, or more accurately, wind and flood insurance for hurricane-prone areas, is often purchased as a supplement to homeowners' insurance to cover these excluded perils.  

A good hurricane insurance plan is a combination of insurance policies to cover damage from the two most devastating elements of a hurricane: wind and water. 

    Choosing the right hurricane insurance for your home requires careful consideration of various factors to ensure you have adequate protection against potential damages. 

1. Understand the Difference Between Homeowners and Hurricane Insurance 

• Homeowners insurance provides coverage for damages caused by fire, theft, vandalism, and some natural disasters. A standard home insurance policy covers you for wind damage in most states, including hurricane winds. But in some areas wind damage may be excluded, so you have to buy a separate wind damage policy. 
• Hurricane insurance focuses specifically on damage caused by hurricanes, which can include wind, rain, storm surges, and flooding. Standard homeowner's insurance may not cover all hurricane-related damage, so specialized policies are often needed, particularly in hurricane-prone regions.  

2. Assess Your Risk and Location 

• Determine your home's value: An appraisal or professional assessment is necessary to determine the value of your home to choose appropriate coverage limits.
• Location: If you reside in a hurricane-prone area, you'll likely need higher coverage limits and may be required to purchase separate flood and windstorm insurance.  

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 A deductible is the amount that’s subtracted from your insurance claims check. With a standard homeowners insurance policy, you might choose a deductible amount such as a $500 or $1,000 deductible. Hurricane deductibles work differently.

Hurricane deductibles are separate from your home insurance deductible and often paid in percentages, typically ranging between 1% to 5% of the insured value of the structure of your home. For example, if your house is insured for $300,000 and you have a 5% hurricane deductible, your insurance check will be reduced by $15,000.

A hurricane deductible is usually triggered when the National Hurricane Center, NOAA or U.S. National Weather Service names a storm. Naming a storm means that these organizations assign a name or number to a specific storm, such as Hurricane Laura or Tropical Storm Delta. Your specific trigger will depend on your insurance 

A deductible is the amount you pay out-of-pocket before your insurance company covers the remaining costs of a covered claim. It's a crucial part of your policy, and the deductible you choose can affect your premium costs. Here's a breakdown:

• What it is: Your deductible is the portion of a covered loss that you're responsible for paying. For example, if your deductible is $1,000 and you have a covered claim for $5,000 in damages, you'll pay the first $1,000, and your insurance will cover the remaining $4,000. 
• How it works: You don't send the deductible amount to your insurance company; instead, your insurer will subtract it from the total settlement amount when paying out your claim. 
• Types of deductibles:
  • Flat dollar amount: This is a set dollar amount, like $500, $1,000, or $2,000,
  • Percentage: Some policies, especially for specific perils like wind or hail, may have a deductible based on a percentage of your home's insured value, typically ranging from 1% to 10%. 
  • Disaster deductibles: Some policies may have separate deductibles for specific events like hurricanes, earthquakes, or floods. 
• Choosing a deductible:
  • Lower deductible: A lower deductible means you'll pay less out-of-pocket if you file a claim, but your premiums will be higher. 
  • Higher deductible: A higher deductible will result in lower premiums, but you'll pay more out-of-pocket if you file a claim. 
• Tips for choosing:
  • Consider what you can comfortably afford to pay out-of-pocket in the event of a claim. 
  • Evaluate your risk tolerance and the likelihood of needing to file a claim. 
  • Factor in your annual household income and other potential expenses. 
  • Some insurance companies offer disaster deductibles for wind, hail, or hurricanes. 

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  Secure important financial and legal documents

• What to include: Loan and credit card account numbers, housing and utility account numbers, insurance information, identity papers (e.g., birth certificates, passports), property titles, tax and employment records, wills and powers of attorney, medical information, passwords, etc.
• Storage options:
  • Hard copies: Store originals in a fireproof and waterproof safe, a bank safe deposit box, or a portable container in your emergency kit.
  • Digital copies: Back up to a secure cloud storage service, external hard drive, or flash drive, keeping the backups in a separate secure location. 

4. Review and update insurance policies

• Homeowners/Renters Insurance: Ensure your policy provides sufficient coverage for potential disaster-related damages, including wind damage. Remember that flood damage is typically excluded and requires a separate flood insurance policy from the National Flood Insurance Program.
• Car Insurance: Review your policy to understand what is covered in the event of disaster-related damage to your vehicle.
• Health and Life Insurance: Maintain adequate health and life insurance coverage to protect yourself and your family financially. 

5. Document your possessions

• Create a Home Inventory: Make a detailed list (including photos and videos) of your household items, both indoors and outdoors. This can significantly streamline the insurance claims process after a disaster.
• Store securely: Store the inventory digitally in the cloud or on an external drive, similar to other vital documents. 

6. Consider a mail hold and online/mobile banking

• Mail Hold: If a disaster disrupts mail service or requires evacuation, a mail hold can prevent important financial documents and checks from being lost or stolen.
• Online and Mobile Banking: Set up online and mobile access to your bank accounts to manage finances, pay bills, and communicate with your bank remotely during a crisis. 

7. Be aware of scams

• Disaster-related scams: Be cautious of individuals posing as contractors, insurance adjusters, or charity representatives demanding upfront payments or soliciting personal financial information after a disaster.
• Protect yourself: Avoid sharing sensitive financial details with unverified individuals and monitor your credit report for suspicious activity. 

By implementing these strategies, you can proactively strengthen your financial resilience and be better prepared to navigate the challenges that might arise during and after a disaster.