Hurricane Insurance: Is It Important? Why Do You Need It?

June 1st officially marked the beginning of Hurricane Season. While we don’t typically see much in the way of hurricanes, it is always beneficial to review your insurance coverage.

Does my property insurance cover storm-related damages? 

Homeowners insurance will provide for some damages from hurricane winds. However, the general deductible for hurricane related damages is different from your average property insurance deductible. Typically, this deductible is in the form of a percentage ranging from 1-5% according to the Insurance Information Institute.

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One major impact from a powerful storm is devastating flooding. This type of damage is not typically covered in a property insurance policy. Homeowners need to elect to obtain a flood insurance policy for coverage on this type of damage.

How does flood insurance work? 

It’s important to know, if you are considering purchasing a property in a storm zone, that flood insurance is required by U.S. law (for purchases with a federal-backed mortgage). For more information on obtaining flood insurance, see the official FEMA government website.


Two different types of flood insurance exist – one policy for businesses and one policy for personal property. The different types of policies range for coverage for damages to personal item as well as structural damage. The price varies for flood insurance incredibly in storm targeted areas. A prospective insured can expect anywhere from $575 to more than $40,000. On average, a flood policy will cost $672 per year.

Review your homeowner’s insurance policy 

One important step a property owner should take is to first assess and review your current property insurance policy. Determine whether the insurance policy covers for hurricane damage from strong winds. Look at the different deductions for these damages and whether they differ from your normal deductions.


Additionally, insurance companies will offer discounts for hurricane insurance if property improvements are made to the home. Homes with hurricane shutters offer homeowners a discount on their insurance policies as well as other discounts for mitigating improvements.

Make sure you don’t delay in purchasing a policy 

It may be too late when you actually want to purchase a policy. Many insurance companies will stop offering policies for sale when a storm is named. It’s important to purchase this policy before the hurricane season is in full swing. At the end of the day, you need to determine whether the risk of hurricane damage in the area you live in justifies the expense to purchase additional protection from damage.

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Written by: Jordan Lulich (2018)