Why You Need Hurricane Insurance

Hurricane Insurance is for Your Financial Protection

If you live in a hurricane area you should weigh the need for hurricane insurance. The costs you have to pay for hurricane insurance will be based on several factors; where you live, the value of your house, and how high a deductible you’re willing to pay.

Check your current home insurance to determine if you are covered for hurricane damage. Coverage details vary by insurance company’s policy and by state law. There’s a thin line between what your standard home owners policy covers and what you might need hurricane insurance for. Check your policy for possible limitations of windstorm insurance, flood insurance and water damage. Your current homeowners insurance may cover damage from wind and wind driven rain but not necessarily from hurricanes.

Insure your homeowner insurance policy doesn’t exclude hurricane related damages altogether. This is especially likely in hurricane prone areas where you may require supplemental hurricane insurance or a separate policy for windstorms and floods.

Even if you have hurricane insurance check for any exclusions as you may not have the coverage you need. Your policy may exclude damage from floods caused by rising water no matter the source. In that case you will need separate flood insurance.

The cost of a comprehensive hurricane insurance policy can vary wildly from $400 for a modest house in a low-risk area to over $20,000 for a luxury home in a high risk area. You can save money by buying through a high risk insurance pool that offers hurricane insurance that is typically available in hurricane prone areas. Your state insurance commissioner can provide details.

In addition to the basic insurance premium you pay, most all of these policies come with specific hurricane coverage deductibles. The deductible typically cost 1% to 5% of the insured value of a home.  The hurricane insurance deductibles usually kick in when damage results from a named storm.  Some states allow home owners to choose their amount of hurricane deductible. The higher the deductible the lower the premium will cost. In some states the deductable level is set.

 You can lower the cost of hurricane insurance by making changes to your home that will mitigate hurricane damage. The four suggestions below will greatly reduce hurricane damage and lower your premium rate:

·       Install storm shutters

·       Install wind resistant roofing

·       Install hurricane straps, clips and anchor belts

·       Install garage door braces

Most people that live in hurricane prone areas have some level of hurricane insurance. Unfortunately the level of coverage usually does not adequately cover the cost of repairs. A word to the wise is to get adequate property insurance coverage before your home is severely damaged or destroyed by a hurricane. Protecting your financial security is why you need hurricane insurance. Without it you can be left with no home at all and no means to replace it.

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