Does Homeowners Insurance Cover Hurricane Damage? (2024) (2024)

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Hurricanes and tropical storms are destructive forces that can cause serious damage to even the most well-constructed home. Some of the most common types of property damage seen after a hurricane include the following:

• Cracks in the home’s foundation
• Damage to interior infrastructure and utilities (such as plumbing and electrical systems)
• Interior damage (such as broken windows and doors torn off hinges)
• Roofing damage
• Water damage and flooding

Unfortunately, depending on where you live and the type of insurance you have, your homeowners insurance policy might not cover every type of damage a hurricane can cause.

Standard home insurance coverage provides several protections for damage you might see following a hurricane. Most standard homeowners insurance policies include dwelling coverage for wind damage to the exterior of your property. For example, if a windstorm passes through and blows shingles off your roof, your homeowners insurance will usually cover the damage.

It may also offer limited coverage for wind-related damage to your home’s interior. For example, if debris blows through your window and rain damages your carpeting, your homeowner’s insurance might cover you.

If the storm damage is so severe that your home becomes uninhabitable, your home insurance policy will also usually provide loss of use coverage. Loss of use coverage provides you with a temporary place to live and additional living expenses while your home is being repaired.

If you live in a hurricane-prone area, your insurance company might institute a separate deductible on hurricane or wind-related damage. There are two types of wind damage deductibles: hurricane-only and wind-and-hail deductibles. Hurricane deductibles apply solely to damage resulting from named storms, while wind-and-hail deductibles apply any time you file an insurance claim for this type of damage.

If your hurricane coverage includes a separate deductible, it will usually be a percentage deductible. Percentage deductibles vary from 1% to 5% of your home’s value in high-risk areas. While some insurers allow customers to pay a higher rate in exchange for a flat-rate insurance deductible (like the one on standard homeowners and renters insurance policies), this option may not be available in all areas.

One of the most important things to remember about hurricane insurance is that no matter where you live, your policy will not cover flood damage. Flood damage is usually defined as water damage from a source outside your home. For example, while a standard homeowners policy covers water damage if a pipe bursts, it will not cover you if a storm surge causes a local body of water to overflow into your basem*nt.

As a result of these exclusions, you might want to add flood insurance to your homeowners insurance coverage if you live in an area prone to hurricanes. Flood insurance sold through the National Flood Insurance Program (NFIP) is issued under FEMA and sold mainly through private insurance companies. Flood coverage extends your homeowners insurance benefits to include damage caused by water entering your home from outside.

Flood insurance is not an individual insurance policy; instead, it functions as add-on coverage you can purchase in addition to your dwelling and personal property coverage. Flood insurance policies include a separate deductible and premium, which adds to the total price you pay for home insurance. Most flood insurance policies also include limits on the total amount of coverage you can claim for flood-related damage. This limit may be separate from your overall home insurance policy limit.

Homeowners insurance for coastal homes is often hard to find, costs more than a standard policy, and still won’t cover damage from floods and windstorms. In general, people with homes subject to flood and windstorm damage need special insurance policies, or add-ons to a standard homeowners insurance policy, in order to be fully protected. While specialized policies like flood insurance may not be legally required, you may have to obtain coverage as part of your mortgage agreement if you live in a high-risk area.

Flood Insurance

A flood insurance policy covers the cost of water damage to your home and its contents as a result of flooding —usually from heavy rain and storm surges. Water damage from a sewer backup, for example, is not covered by flood insurance because the cause was not from outside flooding.

If you have a federally-backed mortgage and purchase a home in a high-risk flood zone, you’re required to get flood insurance. Homeowners can buy a policy through the National Flood Insurance Program (NFIP), managed by the Federal Emergency Management Agency (FEMA).

Windstorm Insurance

Windstorm insurance steps in when your home is damaged by strong winds and tornadoes, providing dwelling, personal property, loss of rent and loss of use coverage. Your mortgage lender may require it if you live in a coastal area.

Private insurers often sell wind-only policies that you can tack onto your standard homeowners insurance policy. But if an insurer turns you down, you can consider state insurance programs, like the Fair Access to Insurance Requirements (FAIR) Plan.

If you live in a state along the Atlantic Coast, you are at high risk for hurricane damage. For example, according to the Insurance Information Institute, some of the states most prone to damage from hurricanes include the following:

• Florida
• Louisiana
• North Carolina
• South Carolina
• Texas

If you live in one of the states subject to hurricanes, you will likely need to pay an additional fee or deductible to maintain hurricane and windstorm insurance. This deductible is applied in addition to your standard deductible when you file a claim related to damage from a hurricane or similar natural disaster.

A hurricane deductible is a separate deductible applied specifically to your homeowners insurance policy when you experience damage from a hurricane. Hurricane deductibles were put into place following Hurricane Katrina to limit what insurance companies would pay out in the event of hurricane-related damage.

Most hurricane deductibles differ from standard homeowners insurance deductibles because they are billed as a percentage of your covered home value rather than a flat rate. For example, while your overall homeowners insurance policy might have a $1,000 deductible, the section on your hurricane coverage might specify that a 3% deductible applies instead. The specifics of when hurricane deductibles apply are laid out on your insurance declaration page.

Hurricane deductibles save insurance companies money because they institute higher limits on what you’ll need to pay before your insurance “kicks in” and begins paying your repair bills. For example, if you own a home insured to a cash value of $500,000 and your hurricane insurance has a 2% deductible, you must contribute $10,000 toward repairs before your insurance starts paying. Hurricane deductibles may be as high as 5% of the insured home’s replacement cost.

States With Hurricane Deductibles

Different states control when and where hurricane deductibles come into play and replace your flat-rate standard deductible. According to the Insurance Information Institute, 20 states currently have homeowners insurance policies with separate hurricane deductibles and coverage limits, including the following:

The specifics of how hurricane insurance operates vary from state to state. For example, in Mississippi, insurance companies may only levy a hurricane deductible if the National Weather Service declares that a named storm will pass through a portion of the state. In Hawaii, you may need to pay up to three unique deductibles depending on the damage to your home and personal belongings.

You can review your state’s unique laws and regulations surrounding hurricane and windstorm insurance on the Insurance Information Institute.

Homeowners insurance policies do not provide comprehensive coverage for hurricane damage. While your homeowners insurance policy will provide limited coverage for damage from a hurricane (for example, wind damage to your roofing), it may have a separate deductible higher than the one for your overall insurance. Homeowners insurance policies also never include coverage for damage from flooding without a separate flood insurance policy.

If you live in an area prone to hurricanes, review your insurance coverage regularly and know how much you’ll pay in the event of serious weather-related damage to your home. If you’re unsure about your deductible after a hurricane, consult with a local insurance agent as soon as possible to avoid confusion when an emergency strikes.