When a Hurricane Hits, What’s Covered and What Are You Responsible For
Updated: Nov 26, 2024
Living on the coast has plenty of perks. You get great views, and an almost continuous ocean breeze, and the water is usually only a few steps from your front door. For some people, this is life at its best. At least until a hurricane hits.
With the number of storms and the scope of their severity increasing each year coastal living can come with quite a few downsides that you should remain mindful of. In particular the threat of hurricanes. So what are the potential impacts of hurricane damage in Florida and what’s covered by insurance? Surprisingly, your home and auto insurance policies may not cover all types of storm damage.
Do You Have Enough Coverage?
When was the last time you looked over your home and auto insurance policies? If you live in Florida, it’s something you should plan on doing before the next big storm hits. If you’re paying a monthly mortgage, you have homeowners insurance. This is usually a requirement set down by the mortgage company. After all, the financial institution holding your mortgage also wants you to do everything possible to protect the investment.
Chances are, you have a pretty standard HO-3 or HO-5 policy. These types of policies are considered standard and cover typical damage to your home like a roof replacement or fence repairs. These policies also provide liability coverage so if someone’s injured on your property you’re not footing the bill. You file a claim with your homeowner’s insurance and they pay for the damages.
Your policy probably also covers wind damage. Something that’s a common problem with hurricanes. Even a Category 1 or 2 hurricane can have wind gusts of around 70 mph or so. You can lose shingles from your roof and tree branches can blow down.
Lighter structures like sheds and even detached garages can blow away and this is also usually covered in a standard home insurance policy. To help improve your understanding, here’s a closer look at what a HO-3 or HO-5 typically covers:
Your dwelling (the structure of the home)
Detached units (like a shed or detached garage)
Personal property (your belongings)
Living expenses if you are displaced
Even though these types of damages are usually covered, you still need to read carefully through your policy. Some insurance companies adjust their policy coverage depending on the area. So for instance, if you live in a hurricane-prone area then wind damage may not be covered—and in this case you’re going to need to go ahead and get a separate policy.
Additional Insurance Coverage for Florida Residents
The Sunshine State sees its fair share of hurricanes, sometimes more than one a year. This may mean your current homeowner’s insurance policy isn’t enough to cover all of your potential damage. Hopefully, your policy covers wind damage. If not, it’s something you should consider. Remember, wind speeds over 70 mph are common with a Cat 1 hurricane. A Cat 4 hurricane can produce wind speeds well over 130 mph.
Wind damage coverage also takes care of any damage caused by tornados. While not as common as hurricanes in Florida, tornados can still spring up, especially in the center of the state. Along with wind damage insurance, here’s a look at what else you may want to add to your current insurance policy.
Flood Insurance
Living by the coast means flooding is an almost constant threat. Even a heavy rainstorm can cause some water issues.
Unfortunately, Florida is seeing most insurance providers increase flood insurance premiums. If premiums aren’t going up, it probably means the insurance is no longer an option. Sadly, this is also legal. Insurance companies can dictate the type of coverage they offer in a specific area.
If you can’t find flood insurance through your provider, you’re definitely not alone. Thankfully, you have another option that’s often a little more affordable than going through a primary carrier. You can apply for flood insurance through the National Flood Insurance Program (NFIP).
You can get up to $250,000 in dwelling coverage and an additional $100,000 for personal property damage. However, this only applies to residential homeowners. Commercial business owners will need to look elsewhere for flood insurance.
The policy typically takes 30 days before it goes into effect so it’s a good idea to apply before the start of hurricane season in June. Your premium is also due in full and upfront before the coverage takes effect.
You can’t divide it into monthly payments like other types of insurance. This can make it a little harder for some homeowners to afford the coverage. In the long run, NFIP is still a little cheaper even though you’re paying for everything up front.
Water Backup Coverage
Your flood insurance doesn’t cover all types of water damage. If the sewage overflows after a hurricane, any property damage probably isn’t covered. You need water backup insurance, and this is usually an add-on policy offered by your provider. You may be able to bundle your policies and get a slightly cheaper monthly rate.
Sewage backup insurance isn’t only helpful during a hurricane. Problems with septic pumps and plumbing can happen any time of the year and it’s nice to know you’re not responsible for paying for repairs out of your pocket.
Debris Removal Coverage
After a hurricane, you may be surprised at what ends up in your yard. A neighbor’s boat may even be blown onto your front porch. Along with random items like bits of a boat or even someone’s house, you’re probably also dealing with downed trees and other debris.
Hiring someone to pick up and haul away all of the debris after a hurricane is expensive. If you have debris removal coverage, you can make cleaning up a lot more affordable. A good tip before purchasing debris removal coverage is to check the policy’s cap. If the cap only covers the cost of removing one tree and you have several on your property, it may not be the best option.
Protecting Your Property From Hurricane Damage
You can’t stop a hurricane from making landfall, but you can take steps to minimize the financial risks that may come from the damage that they can create. Make sure to check your current insurance policy and look for any gaps in coverage that may exist.
Adding any extra coverage does increase your premiums, but you can end up saving money if your home is damaged by a hurricane in any way.