Are You Properly Insured for a Hurricane?

Hurricane season runs annually from June 1 to November 30, and it’s becoming more important than ever to be prepared. Last year was a record-breaking hurricane season, with 30 named storms, 14 hurricanes, and 7 major hurricanes, making it one of the most active and destructive seasons in recent history. The financial impact of hurricanes is staggering. Some storms cause over $30 billion in damage, devastating communities and leaving homeowners with costly repairs. 

Given this increasing frequency and severity, waiting until a storm is on the horizon to think about your insurance coverage can be a costly mistake. Hurricanes can cause damage from high winds, flooding, and storm surge.  Without the right insurance, you could face significant out-of-pocket expenses. 

It’s critical to review your insurance policies before hurricane season begins to ensure you have the proper protections in place. Don’t wait. Preparing your coverage now can save you time, money, and stress later.  

What Is Hurricane Insurance? 

Hurricane insurance is not a single, standalone policy. Instead, it refers to a combination of coverages that work together to protect your home or business from the various risks associated with hurricanes: 

• Flood Insurance
  Covers damage caused by storm surge, rising waters, and heavy rainfall. These are some of the most destructive and common effects of hurricanes. Flood insurance is typically a separate policy from standard home or business coverage.

• Windstorm Insurance
  Provides coverage for property damage caused by high winds, including those from hurricanes and tropical storms that can tear off roofs, break windows, or knock down trees. Coverage is typically offered either through a standalone wind-only policy or as part of a property insurance policy that includes wind coverage.

• Homeowners Insurance
  Covers wind-related structural damage and personal belongings caused by a hurricane. Most policies exclude flood damage and often include a separate deductible specifically for hurricane-related claims.

• Commercial Property
  Protects business buildings, equipment, inventory, and furnishings from wind damage caused by hurricanes. Like homeowners’ insurance, it generally excludes flood damage unless paired with a separate flood insurance policy.

Understanding Hurricane Insurance Policy Exclusions  

Standard insurance may help cover some damage resulting from a hurricane, but it often comes with specific exclusions. For instance, flood-related damages are typically not covered under a basic insurance policy. You may also be subject to a separate hurricane deductible, which is often a percentage of your total insured value and can be higher than your standard deductible. 

If your home or business is in a high-risk area, it’s essential to review your policy carefully and consider additional options to reduce your out-of-pocket expenses. One option is a deductible buyback policy. 

A deductible buyback policy offers supplemental coverage that can reimburse or reduce your deductible in the event of a hurricane or storm-related claim. It’s especially useful in coastal regions when policyholders have high hurricane deductibles. This type of policy helps lower your financial exposure while keeping your overall insurance costs more manageable. 

When Should You Buy Hurricane Insurance? 

Timing is everything when it comes to hurricane insurance. Many policies have waiting periods before coverage kicks in, often 30 days for flood insurance. That means you can’t wait until a storm is approaching to secure coverage. 

If you live in a coastal state or another area prone to hurricanes, don’t delay. Evaluate your insurance needs before hurricane season begins, or as soon as possible. 

Additional Hurricane Insurance Options 

Beyond your primary insurance coverages, there are a few additional protections and planning steps to strengthen your hurricane preparedness: 

• Loss of Use Coverage
  Make sure your homeowner’s policy includes enough coverage for temporary living expenses if your home becomes uninhabitable. Many flood policies have zero loss of use coverage. This means they will not help cover the cost of putting your family into a safe temporary place to live while your home is being repaired. Be sure you understand what is covered and where gaps may exist.

• Business Income Coverage
  Ensure your policy includes coverage for loss of revenue, costs for temporary structures, and employee wages if your business operations are interrupted due to a covered event.

• Home Inventory Tips
  Keep a detailed record of your belongings, including photos, receipts, and serial numbers, to help streamline the claims process. 

• Policy Review
  Meet with your insurance agent to confirm that your policy limits, deductibles, and endorsements reflect the current value of your property and belongings. 

Speak With a Shepherd Insurance Agent Today 

Hurricanes are unpredictable, but planning ahead isn’t. Now is the time to review your insurance policies and make any necessary updates. Your Shepherd Insurance agent can help you understand your current coverage, identify any gaps or needed endorsements, and guide you through purchasing additional protection like flood or windstorm insurance. They’ll also explain how deductibles work for hurricane-related claims and offer advice on preparing your home and documentation for a smoother recovery. 

Don’t wait until a storm is approaching; contact us to ensure you have the right protection in place when it matters most.