Q: We’re in the middle of hurricane season and I’m not sure what my insurance policies cover. What should I be looking for?
A: Hurricane season is here, and for many of us, it comes with an unsettling question: Do I really have the right insurance coverage if a storm hits? It’s a great question because the reality is there is no single policy called “hurricane insurance.” Coverage is often a combination of your homeowner’s policy and a flood policy, each with its own limits, exclusions, and costs.
Your homeowner’s insurance generally covers wind and hail damage and usually includes a special hurricane deductible. This deductible is typically a percentage of your home’s insured value, not a flat dollar amount. For example, if your home is insured for $400,000 and your hurricane deductible is 5%, you would pay $20,000 out of pocket before insurance covers the rest. So, if a hurricane causes $60,000 of damage, you pay the first $20,000 (the deductible) and your insurance covers the remaining $40,000. Keep in mind, coverage often only applies to named storms.
If a storm causes a power outage for an extended period of time, under the covered perils (i.e. windstorm), your homeowner’s policy may cover things like spoiled refrigerator/freezer food but with a cap often between $500 – $1,000. If your home is uninhabitable due to a covered peril like hurricane wind damage, temporary lodging and meals may be covered but up to certain policy limits. Be sure to read the fine print and clarify your coverage with your insurance professional.
Flood insurance, on the other hand, is sold as a separate policy, either through the National Flood Insurance Program, better known as FEMA, or through private insurers. These policies typically cover flood damage from storm surge, heavy rain, and rising water. You don’t have to live in a designated flood zone to be at risk; blocked culverts, debris, or vegetation can cause water to back up and flood entire neighborhoods. Check your surrounding culverts and confirm with county or township officials that they’re clear.
Many homeowners don’t discover gaps in their coverage until it’s too late. Be sure to thoroughly review your coverage. Standard homeowner’s policies exclude flood damage, and flood insurance often has a 30-day waiting period before taking effect. Some policies reimburse based on the depreciated value of items rather than the actual cost to replace them new. Rising construction costs may mean that your current limits are too low. Be sure to ask your insurance agent direct questions about what is and isn’t covered and review your limits regularly. Don’t wait until after the unfortunate event.
Here’s another tip: update your home inventory. Document belongings with photos or video, especially high-end electronics, designer furniture or rugs, wine fridges, or specialty appliances. Consider hurricane-impact windows and doors as they reduce damage risk and eliminate dangerous tasks like climbing ladders during storms. Keep supplies on hand and maintain a family evacuation plan. Taking these steps now can help reduce financial risk and stress later, giving you peace of mind when the news is filled with storm warnings.
Hurricane season can be stressful, but being prepared makes all the difference. Understanding your insurance coverage, updating your home inventory, and taking proactive mitigation steps are all ways to protect your home, belongings, and family. Don’t wait until a storm is imminent: Review your policies, clarify limits with your agent, and make any necessary updates now. Remember, a little planning today can prevent a lot of stress tomorrow.
Dottie Bourlier, CFP®, is a financial planner at Focus Partners Wealth in Indian Harbour Beach. Contact her at 321-428-4555 or dottie.bourlier@focuspartners.com;
The information provided is educational and general in nature and is not intended to be, nor should it be construed as, specific insurance or legal advice. Individuals should seek advice from their insurance agent, attorney, or other legal advisors personalized individual advice. This reflects the opinions of Focus Partners or its representatives, may contain forward-looking statements, and presents information that may change. Nothing contained in this communication may be relied upon as a guarantee, promise, assurance, or representation as to the future.
