What Is Hurricane Insurance

English: New Orleans, La. August 30, 2005 --Ae...

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Hurricane insurance is something which is becoming increasingly necessary. It appears these days that every single hurricane season has one disaster after another, hurricanes are increasing, and as millions of people discover every hurricane season . . . it’s no joke. Hurricanes are the single most destructive weather phenomena around. High hurricane winds can destroy homes, either directly or indirectly as objects are whipped up and smashed into the surrounding properties, hurricanes cause devastating flooding, ruining properties and destroying the livelihoods of many, many families every year. Please note that you are not covered for flooding unless you have flood insurance.

Hurricane insurance rates are on the increase again, which is bad news all around. As well as raised hurricane insurance rates, many insurance companies are also increasing the percentage of deductibles on their policies, and even refusing to offer hurricane insurance to people who live in high risk areas.

More About Hurricane Insurance

Some hurricane damage will be covered by your regular personal property insurance, some of it won’t. Hurricanes are becoming so frequent these days that insurance companies are beginning to exclude any damage which was caused by a hurricane so you may need to buy additional hurricane insurance cover.  The time is NOW to check your homeowners insurance policy and see exactly where you stand, before the next hurricane strikes. 

Even if you do have hurricane cover you’ll still need to stash a bunch of cash in order to be really protected. The deductibles involved for hurricane related damage are pretty high these days, they are generally a percentage of the value of your home, and it can work out to be quite a high amount – let’s look at an example, if your house insurance value is $150,000 and your hurricane insurance deductible rate is 1%, then you’ll need a stash of $1500 if a hurricane strikes, however, many hurricane insurance deductible rates are now as high as 5%, which makes it $7,500 which is quite a pile of money to have lying around. If you think that’s bad, how about 10% . . . you do the math.

Hurricane insurance is usually limited to damage caused by winds, so any damage due to stuff like storm surge or other types of flooding will not be covered. In order to become fully protected you need to also have flood insurance to cover potential water hurricane damage. Bear in mind also that flood insurance may cover the water damage to your property and personal belongings, but any alternative living arrangements will not be covered. If you’ve gotta move out of your house for a while until the repairs are finished then you’ll need to include that in your hurricane insurance cover.

So much to think about . . . .

How To Buy Hurricane Insurance

Before you go running out before the hurricane season to try and find some hurricane insurance, the first thing you gotta’ do is to check your basic homeowner policy. You’ll probably find that there is some hurricane cover included in your homeowners insurance policy. If it does offer any hurricane cover it’ll probably be just for hurricane damage caused by wind in the storms, not from the gallons of water that often accompanies them. In order to really protect your home you will probably need to take out homeowners insurance with a separate flood insurance policy.

Hurricane Insurance Premiums vs Hurricane Insurance Deductibles

Hurricane insurance deductibles are on the increase, so what you’ll have to decide is whether you’re willing to chance higher deductibles in return for lower premiums. Depending on your insurance company, you might not even have the choice. Whatever hurricane insurance policy you decide upon, make sure that you know exactly what is and is not covered before the hurricane season – some hurricane insurance policies have upper limits on the cost that will be covered for replacement stuff. This might not seem to be too much of a problem unless your house is destroyed and needs to be rebuilt from scratch you might not even have enough cash to buy the materials needed for construction.

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