Does Homeowners Insurance Cover Flooding From a Hurricane?

When a hurricane strikes, many homeowners are uncertain about their insurance coverage for flood damage. Standard homeowners insurance policies typically exclude flood damage, a common misunderstanding. This article clarifies relevant insurance coverage and steps policyholders should consider.

Homeowners Insurance Coverage Basics

Standard homeowners insurance policies cover damage to a dwelling and personal property from specified perils like fire, theft, and wind. For example, a standard policy generally covers repair costs if hurricane-force winds damage a roof or siding.

Most standard homeowners insurance policies contain significant exclusions. A universal exclusion is damage caused by flooding, defined as rising water from external sources like overflowing rivers, storm surge, or heavy rainfall. Other common exclusions include damage from earthquakes, sewer backups, and neglect.

Policies cover sudden and accidental losses, not gradual deterioration or preventable issues. While hurricane wind damage is typically covered, water damage directly resulting from flooding is excluded. This necessitates separate coverage for flood events.

Understanding Flood Insurance Policies

Separate flood insurance policies are necessary to cover damage from rising water. The National Flood Insurance Program (NFIP), administered by FEMA, is the primary source for this protection. Private insurance carriers also offer flood insurance as an alternative.

NFIP policies cover direct physical loss from a flood, including damage to the building and its contents. For residential properties, the NFIP offers up to $250,000 for building coverage and $100,000 for personal property. Private flood insurance policies can offer higher coverage limits and broader terms.

Factors influencing flood insurance premiums include the property’s flood zone designation, its elevation, coverage amount, and deductible. The age and type of building construction also play a role in determining the cost.

Private providers use modeling to assess risk and set premiums. While NFIP rates are standardized, private market rates can be more flexible, potentially leading to competitive pricing. NFIP policies have a 30-day waiting period, while private policies often have a shorter, 14-day waiting period.

Differentiating Wind and Water Damage

Distinguishing between wind and water damage during a hurricane is crucial for insurance claims. Standard homeowners policies cover wind damage, while flood insurance covers water damage from rising floodwaters. Insurers assess the primary cause of damage to determine which policy responds.

For example, if high winds tear off a roof and rain enters the home, the resulting interior water damage is likely covered by the homeowners policy. However, if water enters due to storm surge or rising floodwaters, that damage falls under a flood insurance policy. Documenting damage immediately and thoroughly is crucial for this assessment.

Insurance adjusters evaluate the sequence of events and water source. This assessment involves examining water lines, debris patterns, and structural damage to discern whether wind or water was the proximate cause. Clear photographic and video evidence aids this process.

Filing a Hurricane Damage Claim

After hurricane damage, policyholders should prioritize safety, then promptly begin the claims process. The initial step involves contacting the insurance company. This notification should include both homeowners and flood insurers if separate policies are in place.

Detailed documentation of all damage is essential. This includes taking numerous photographs and videos from various angles, capturing wide shots and close-ups of affected areas and items. Create a comprehensive inventory of damaged personal belongings, including descriptions and estimated values.

Policyholders should make temporary repairs to prevent further damage, such as tarping a damaged roof, and keep all receipts. Do not dispose of damaged items until an insurance adjuster inspects them. Maintain a log of all communications with the insurance company, including dates, times, and names.

Preparing Your Insurance for Hurricane Season

Effective preparation before hurricane season streamlines the claims process and ensures adequate coverage. Review existing insurance policies annually, including homeowners, flood, and any separate windstorm policies. This review confirms coverage limits align with the current value of the home and its contents.

Understanding deductibles is important, especially hurricane deductibles. Unlike standard fixed-dollar deductibles, hurricane deductibles are often calculated as a percentage of the home’s insured value, commonly 1% to 5%. This deductible applies only to damage caused by a named hurricane and may be triggered when a hurricane watch or warning is issued.

Creating a detailed home inventory of possessions before a storm hits can expedite claims. This inventory should include photos, videos, descriptions of items, purchase dates, and estimated values. Store important documents, such as insurance policies, identification, and financial records, in a safe, waterproof location, physical or digital, to ensure accessibility.