Hurricanes can cause tens of thousands of dollars in damage to your home, unless you have the right insurance

Table of Contents: Masthead Sticky

• Hurricanes can cause flooding and wind damage to homes, and one inch of damage alone can cost $20,000.
• Homeowners insurance covers wind damage and some water damage, but it doesn’t cover flooding.
• You need both flood insurance and homeowners insurance to truly protect yourself.
• See Insider’s guide to the best homeowners insurance companies »

According to the National Hurricane Center, on the Atlantic coast the season runs from June 1 to November 30. On the eastern Pacific coast, hurricane season runs from May 15 to November 30.

Hurricanes cause flooding and high winds that can damage homes, but homeowners insurance doesn’t always cover the repairs. In fact, the majority of homeowners who experienced flooding in 2020 did not live in flood zones and were not covered under their homeowners insurance.

According to FEMA, 30% of all flood damage claims happen in low to moderate-risk zones, where flood insurance is not required.

“Flooding is one of the most common and costly natural disasters in the US, and given we are in the midst of an above-average hurricane season, consumers need to ensure that they will not be left exposed if their homes are hit hard by a storm,” said Ralph Blust, CEO of the National Flood Services. NFS administers flood insurance on behalf of FEMA and the National Flood Insurance Program (NFIP).

To fully protect your home from hurricane damage, homeowners and flood insurance are recommended. If you live in hurricane-prone areas, you may be required to have an additional windstorm rider to your homeowners insurance.

What is hurricane insurance?

Hurricane insurance refers to the coverage necessary to cover hurricane damage. A hurricane has to be a declared event, which is dictated by an announcement from the National Hurricane Center.

Proper hurricane insurance requires a combination of homeowners and flood insurance. If you live in certain states, it could include additional coverage for high-coverage windstorm damage.

Damage from a hurricane is typically caused by winds and flooding. Damage to your home from winds is usually covered under your homeowners insurance as an insurance peril. However, if you live in hurricane zones or coastal areas, you may be required to get an additional rider for extreme weather like hurricanes or tornadoes.

Homeowners insurance usually covers water damage to your home, but there are exceptions. Water damage due to flooding is not covered under homeowners insurance and requires separate flood insurance coverage. If you live in a high-risk flood zone, you’re required to purchase flood insurance. However, due to climate and weather changes, we’re seeing more storms and damage happening outside target flood areas.

What is windstorm coverage?

Wind and hail are named insurance perils in most homeowners policies. However, hurricane winds can be in excess of 200 miles per hour. Most insurers require an additional high-coverage windstorm rider and separate deductible if you live near coastal areas, according to Steve Wilson, senior underwriting manager at Hippo Insurance.

Additionally, some states require an additional windstorm rider if tropical storms are normal or you live in coastal areas, according to Hippo Insurance.

Wilson said windstorm coverage is regional, usually along the gulf coast and east coast from Florida to New York. Premiums will vary geographically.

States that may require additional windstorm coverage include:

• Alabama
• Connecticut
• Delaware
• District of Columbia
• Florida
• Georgia
• Hawaii
• Louisiana
• Maine
• Maryland
• Massachusetts
• Mississippi
• New Jersey
• New York
• North Carolina
• Pennsylvania
• Rhode Island
• South Carolina
• Texas
• Virginia

Wind and hail storms can produce damage that causes mold. Mold needs time and warm weather to grow, which is why you normally see mold after a hurricane. Mold damage from a covered peril – such as a wind or a hail storm – may be covered under standard homeowners insurance. For example, Wilson said that wet insulation from wind or hail damage causing mold may be covered.

If mold is not related to a named insurance peril, most homeowners insurance companies will deny coverage for mold damage.

How is flood insurance different from homeowners insurance?

Homeowners insurance offers protection for homeowners’ belongings and for the home itself. Unlike car insurance, homeowners insurance is not required by state law. However, if you have a mortgage, your lender will require homeowners insurance to protect the investment.

Homeowners insurance covers the property from damage, referred to as insurance perils. A peril is an event that may damage your home or belongings, like theft, fire, or a storm. The type of peril coverage you have depends on the type of homeowners insurance you purchased. Common insurance perils include fire, lightning, theft, ice, snow, sleet, smoke, vandalism, and freezing.

Damage	Homeowners Insurance	Flood Insurance
Sump pump	Yes*	No
Sewer water	Yes*	No
Basement water	Yes*	No
Broken pipes	Yes	No
Rain water from window or windstorm	Yes	No
Accidental discharge of water or steam	Yes	No
Flood	No**	Yes**
Windstorm or hail	Yes***	No
Ice, snow, sleet	Yes	No

*Available as add-on coverage if not part of policy

**Flood insurance is available through the NFIP and approved insurers

***If you live in hurricane or tornado areas, additional windstorm rider may be required

Floods, earthquakes, government seizures, mudslides, ordinance updates, sewer backups, and sinkholes are all perils that won’t be covered by homeowners insurance, according to Hippo Insurance. Those will require add-on coverage using a rider policy.

The National Flood Services CEO Ralph Blust noted that homeowners may have a false sense of security if there have been no previous floods, since storms are increasing in frequency and intensity due to climate change.

For example, Blust said Hurricane Harvey’s damage to Houston was five miles off the coast, where it had never flooded in the past five years and most of those homeowners didn’t have flood insurance. If 20 homes were damaged and only five homes had flood insurance, it could greatly impact the community, with empty neighborhoods and businesses that aren’t able to bounce back.

Homeowners who live outside of high-risk flood zones and do not have flood insurance will pay for damage out-of-pocket because flood damage isn’t covered under homeowners insurance. According to Blust, one inch of flood damage alone can cost a household up to $20,000.

Will homeowners insurance cover relocation costs?

“Loss of use” coverage, also known as “additional living expenses” or ALE, is included in most homeowners and renters insurance policies and provides reimbursement for temporary housing when a peril causes damage to your property or belongings that makes your home or rental unit inhabitable.

For “loss of use” and “additional living expenses,” much depends on your insurance carrier and it varies by provider. Some carriers will reimburse you for temporary housing. Others may have a list of housing alternatives.

Ashlee Tilford, managing editor for Insurance.com, told Insider that most homeowners have a misconception of what constitutes “inhabitable.” Don’t assume that your insurance carrier will pay additional living expenses, because the definition of inhabitable varies by company.

If you’re considering leaving your home due to damage, contact your homeowners or renters insurance provider first and take detailed pictures of the damage. Make sure to lock up and secure the premises as well.

Will homeowners insurance cover spoiled food?

Some homeowners policies cover food that goes bad as a result of a covered peril. According to the Insurance Information Institute (III), “following a hurricane, some insurance companies may include food-spoilage coverage, usually for a set amount that can range from $250 to $500 per appliance.”

How much does hurricane coverage cost?

To properly protect your home from hurricane damage, it’s recommended that you purchase both homeowners insurance and flood insurance. Your state may also require an additional windstorm rider to your homeowners insurance if you live in a hurricane zone.

The average annual homeowners insurance premium in the United States in 2017 was $1,211, according to the National Association of Insurance Commissioners (NAIC). Flood insurance will be in addition to your homeowners insurance policy. Blust said the average flood premium is around $830 annually. Together, this is $2,041.

If you live in an area that requires windstorm riders, it will be an additional cost on top of homeowners and flood insurance and varies geographically.

Because the coverage is available in certain areas, quotes aren’t online. However, the Texas Windstorm Insurance Association (TWIA) states that the average policy is $1,700. Including homeowners and flood insurance, the cost would be $3,741. It may seem like a high expense, but again, one inch of flood damage alone can cost up to $20,000 to repair.

Tips to prepare your home in the event of a hurricane

Hippo Insurance’s Wilson recommends taking the following steps:

1. Review your homeowners insurance annually with your carrier to make sure you have proper coverage for your region.
2. Have an evacuation plan on where to meet and what time ahead of a disaster and communicate that with family members.
3. Have a small bag with medication, flashlight, and batteries for three days.
4. Have temporary repair equipment available like a tarp.
5. Contact your homeowners insurance carrier if a hurricane announcement is declared.
6. In between hurricane season, prevent damage by doing home maintenance looking for weak points – under sinks, gutters, shingles, debris around the foundation – and signs of wear and tear.

What to do if you experience hurricane damage

After experiencing a disaster, Wilson recommends staying in touch with your homeowners insurance company to let them know what’s going on at your home and take the following steps when submitting insurance claims:

1. Contact the insurance carrier to file a claim in a timely manner. For homeowners, your carrier may provide a list of contractors and offer advice on do-it-yourself tips to prevent further damage. If you’re a renter, you should also inform your landlord or property management company.
2. Take pictures of the damage before disposal and cleanup.
3. Beware of price-gouging contractors and door-to-door scammers. Ask contractors for their license and insurance credentials to avoid fraud. If you’re a renter, your landlord is responsible for the building and structure.
4. Prevent further damage to your property.
5. Don’t do something you’re not comfortable with/that doesn’t look safe. Homeowners insurance has a condition to prevent further loss. Focus on a temporary fix instead of something long-term so insurance can properly access a permanent fix by a professional.

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