Hurricanes are among the most devastating storms on Earth because they combine both high winds along with massive storm surges that cause terrible flooding. Because of how damaging hurricanes can be to property, many homeowners insurance policies either don't cover damage from hurricanes or have special deductibles that can be as high as 10 percent of the home's value. To protect yourself you need a policy that covers hurricane damage.
What is it?
There is really no specific insurance called hurricane insurance. Instead, it is a patchwork of coverages to ensure your home is protected from hurricane damage. If your homeowners policy does not cover hurricane damage, you will need to get a separate windstorm policy. You also need to have flood insurance to cover you from flood damage that can be caused by a storm surge.
Who is it for?
Coverage for hurricane damage is something anyone who lives in a coastal area should have. If your homeowners policy excludes such damage, you need to get a separate policy that does cover it. Even if your homeowners policy does cover hurricane damage, you might want supplemental coverage if you have a high deductible.
How does it work?
Your hurricane coverage will kick in if your home is damaged by wind and rain from a hurricane. Such coverage usually will cover wind damage as well as water damage caused by rain. Flood damage caused by a storm surge is covered under flood insurance. In addition to paying to fix your home, your insurance also may pay for you to live elsewhere while you home is being fixed.
Different types of coverage
Hurricane coverage may be offered by a private insurer, but in places where hurricane losses are common, it may be offered as part of a government pool. Policies usually cover wind damage and water damage caused by rain.
The main benefit of having hurricane insurance is ensuring damage to your home from a hurricane is covered, since some homeowners policies in coastal areas exclude it.