Hurricane insurance is something that technically does not exist. It is a broad term used for a collection of different insurance policies that provide coverage for the different types of damage caused by a hurricane.
It is vital that homeowners are aware of what their existing policies cover and what they do not. For example, homeowners’ insurance will cover a range of bad weather events, but there is no coverage for flooding within these policies.
What Is Considered Hurricane Insurance?
Hurricane insurance does not exist as a standard policy sold by insurers. When people refer to hurricane insurance they are referring to coverage for their property and its contents. Storm damage coverage and flood insurance comprise the core of the insurance coverage. The vast majority of homeowners already have homeowners’ insurance, so their property and its contents are already largely covered.
But for homeowners in hurricane states like Texas, Florida and Louisiana they need to go further with the amount of coverage they have so they are not forced to pay any repair costs out-of-pocket.
What Factors Influence Hurricane Insurance Cost?
Hurricane insurance is largely influenced by the location and value of a property. There are other factors, of course, but the biggest differences are largely centered on these two factors.
Location You Live In
The primary factor influencing hurricane insurance cost is location. Someone who lives in downtown Chicago is always going to pay considerably less than someone who lives on the coast of Florida. It should be noted that every state in the U.S. has been hit by a hurricane at some point in history. There are no areas of the U.S. that are completely hurricane risk-free.
The Value Of Your Home
The other big factor is the size and value of the property. Insuring a large condo complex is always going to cost more than a smaller two-bedroom house.
Insurers pay out billions of dollars nationwide for flood damage alone every single year. The more a property costs to repair and reconstruct, the higher the premiums. One way of lowering these premiums is to opt for a higher deductible. However, even in parts of the country that experience hurricanes every year it may not be worth choosing a higher deductible.
Costs That Go Into Hurricane Insurance
As mentioned before, hurricane insurance is not a standard policy. Homeowners need to get adequate coverage by taking out multiple types of policy.
This is because there is significant crossover between different policies, such as homeowners’ insurance. The lack of a standard hurricane insurance policy prevents homeowners from paying for the same coverage twice.
Homeowner’s insurance is something every homeowner should have. It provides coverage for numerous bad weather events. It will also cover the structure of a home and its contents.
The reason why homeowners’ insurance is not sufficient on its own is that flood damage is specifically excluded. So many victims of hurricanes have had to pay all their own costs because they assumed their homeowners’ insurance policy covered them.
Flood insurance will provide coverage for any sort of flooding caused by a natural disaster. It is important to purchase flood insurance because a single inch of floodwater costs an average of $25,000 to repair.
Most hurricanes hitting land in the U.S. are not strong enough to tear down a modern structure. The real damage is caused by flooding, which most properties have very little defense against. When taking out flood insurance, be mindful of the amount of coverage offered. Flood insurance should be valued at the cost of the property. Likewise, you should think about deductibles. Flood insurance policies with low premiums often have thousands of dollars in deductibles. If you cannot afford the deductibles, paying higher premiums may be the best option.
Contact A Hurricane Insurance Expert
Hurricane insurance must be purchased before a hurricane appears. If a named hurricane appears in the Atlantic or the Gulf of Mexico, insurers will not allow people to either purchase coverage or purchase additional coverage. This is why it is vital that homeowners act now. Find out more about whether you are adequately covered by speaking to the hurricane insurance experts at Merchant Family Agency. You will be able to find out all the details about hurricane insurance and how to find the best deal on premium hurricane protection.