What Is Covered Under Hurricane Insurance?

Hurricane insurance is a specialized form of protection designed to safeguard homeowners from the financial devastation hurricanes can inflict. It addresses damages stemming from the intense winds and other perils associated with these powerful storms. While standard homeowners policies offer some coverage, those in hurricane-prone areas often require additional provisions to ensure comprehensive protection for their property and belongings. Understanding the scope of this coverage is important for preparing for potential hurricane impacts.

Understanding Core Hurricane Insurance Coverage

A standard hurricane insurance policy, or the windstorm portion of a homeowners policy, primarily covers direct physical damage to the dwelling and personal property caused by hurricane-force winds. This coverage extends to structural components like roofs, walls, and windows. Should a hurricane rip off shingles or compromise exterior walls, the policy covers the necessary repairs or rebuilding costs.

The policy includes coverage for personal belongings inside the home if a wind-damaged opening allows rain or other elements to enter and cause damage. This means items such as furniture, electronics, and clothing are protected when the wind first creates a breach in the structure. This contrasts with damage from rain entering through an intact structure, which is not covered.

Another component of core hurricane coverage is Additional Living Expenses (ALE), also known as Loss of Use coverage. This provision helps policyholders cover increased living costs if their home becomes uninhabitable due to covered hurricane damage. ALE reimburses expenses such as temporary housing, including hotel stays or rental homes, and increased costs for meals if a kitchen is unavailable. It also may cover other expenditures like increased transportation costs, laundry services, and temporary storage for personal belongings. Reimbursement for ALE is based on the difference between normal living expenses and the additional costs incurred, with coverage limited to a percentage of the dwelling coverage, often ranging from 20% to 30%, or subject to a specific time limit.

Distinguishing Hurricane Insurance from Flood Insurance

A common misunderstanding involves the scope of hurricane insurance, particularly concerning water damage. While hurricanes bring heavy rainfall and storm surge, standard hurricane or homeowners insurance policies do not cover damage caused by rising water. Flooding specifically refers to an excess of water on normally dry land, or water that enters the home after touching the ground first. This includes damage from storm surge, overflowing bodies of water, or surface water runoff.

Protection against flood damage requires a separate flood insurance policy. The primary source for flood insurance in the United States is the National Flood Insurance Program (NFIP), administered by the Federal Emergency Management Agency (FEMA), though private insurers also offer policies. NFIP policies cover building property up to $250,000 and personal property (contents) up to $100,000.

Most flood insurance policies come with a waiting period, 30 days, before coverage becomes effective. This prevents homeowners from purchasing a policy only when a storm is imminent. For complete protection in hurricane-prone regions, homeowners need both hurricane (windstorm) coverage and a separate flood insurance policy. This dual coverage addresses the distinct perils of wind damage and water damage.

Common Exclusions and Deductibles

While hurricane insurance offers protection, certain types of damage are excluded from coverage. Policies often do not cover damage resulting from neglect or lack of maintenance. Pre-existing damage is also excluded. Additionally, damage from earth movement, including landslides or sinkholes, is not covered, even if triggered by a hurricane.

Common exclusions include sewer backup or sump pump overflow. Damage to vehicles, even if caused by a hurricane, falls under auto insurance rather than homeowners or hurricane policies.

Hurricane insurance policies also feature specialized deductibles that differ from standard homeowners insurance. These hurricane deductibles are percentage-based, calculated as a percentage of the dwelling’s insured value, rather than a fixed dollar amount. Common percentages range from 1% to 5% of the home’s insured value, though they can be as high as 10% in particularly vulnerable coastal areas.

For example, a home insured for $300,000 with a 2% hurricane deductible would require the homeowner to pay the first $6,000 of covered damage before the insurance company begins to pay. This percentage-based structure means policyholders face higher out-of-pocket costs for hurricane claims compared to claims for other perils. These deductibles are triggered when a named hurricane affects the area.