The National Hurricane Center named the first storm of this hurricane season before the season officially begun. Last month, Alberto was declared a storm a few days prior to the commencement of the June 1 season. A very active storm season is highly expected, so it’s important to know about the benefits and importance of hurricane insurance for properties surrounding the gulf and atlantic ocean.
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.
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 check if you are considering purchasing a property in a storm zone that flood insurance is required by US law (for purchases with a federal backed mortgage). For more information on obtaining flood insurance, see the official FEMA government website here.
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.
Are any options available for an uninsured whose property is damaged?