What You Must Know About “Hurricane Insurance”

Some insurance companies in the Southeast have come under heat from their subscribers as hurricane season brings about changes in the policies. Companies are informing customers that their insurance policies will not be renewed as the insurance companies are adjusting the amount of risk they are willing to face with their insurance policies.

Customers are up in arms – some agree they could understand if there was a hike in the costs of the premium to give insurance companies a better incentive to insure the properties, but are miffed at the complete dismissal of their policies.

But storms are more frequent and severe, making insurance companies concerned. The Insurance Information Institute offered insight into this, showing how there were many more hurricanes this decade than the last, and even more have made landfall in the United States – 6 hitting in 2004, the largest number since 1991. 2005 also saw the most deaths, with over 1,000 in the United States – after there had been less than 60 deaths due to hurricanes a year since 1991. With the dismissal of some customers’ insurance policies, they may not know where to turn. But there are options. Some home insurance policies do cover hurricane damage, but more frequently there is a clause in them that excludes hurricane-related damage claims.

It is important to look at this first and foremost when looking for a new insurance policy. If a home insurance policy with a built-in hurricane insurance policy cannot be found, it may be important to get additional coverage. Even if you do have coverage, though, it is often important to also have cash on hand to protect yourself.

This is because the deductible for hurricane-related damage is usually a percentage of the total value of your home, and it can be quite high in some cases.
Besides specific hurricane insurance, you may also want to look into flood insurance. Generally, hurricane insurance is limited to wind damage, and does not cover damage that could be incurred by a possible storm surge or subsequent flooding. Flood insurance will help you to be completely protected.

In conjunction with this, you should check on your plan’s policy in terms of mold damage, as mold can be left after water intrusion during a hurricane and also cause expensive problems.

Lock Insurance Staff 10/25/2011 9:35:00 AM

About the Author Don

Don Westerfeld has been active in the field of Insurance and Financial Planning since 1997. Don grew up in Indiana later moving to Lakeland Florida where he continues to reside with his wife and children. When he’s not in the office you can find him enjoying the great outdoors. He has served on several charitable business and non-profit organizations and continues to provide guidance, advice and support to local charities.

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