However, not all standard home insurance policies cover windstorms, so check with your insurer to see if you have coverage and if a separate deductible applies. With hurricane deductibles, you can pay a specific percentage, usually between 1 and 5%, rather than a fixed amount, depending on your policy. Hurricane deductibles are different from regular home insurance deductibles and are based on a percentage of the value of the home. As a result, insurance companies began requiring hurricane deductibles in 19 states and Washington, D.
You need a separate flood insurance policy to protect your home from external flooding caused by a hurricane. Once a hurricane has been named, cancellation and trip interruption losses resulting from that hurricane are excluded from policy coverage. You may need to have a separate home insurance deductible for losses caused by the hurricane, especially if you live in a high-risk area, such as along the Atlantic coast. For example, if a storm goes beyond a tropical depression and eventually becomes a named hurricane that causes damage to your property, your hurricane deductible will apply.
In addition to hurricane coverage, windstorm insurance applies to problems resulting from tornadoes, cyclones and other types of high-speed winds. The conditions under which a hurricane deductible will apply, if your policy has one, vary from state to state. However, insurers' hurricane deductible plans are subject to state insurance departments and may be subject to various regulations and laws. While there is no specific hurricane insurance, this insurance may refer to a combination of a windstorm policy, flood insurance and homeowners insurance.
These policies are also typical and sometimes mandatory in high-risk hurricane-risk states, such as Florida and Texas. Whether hurricane insurance is right for you will depend on several factors, including the risk of a hurricane damaging your home and your own financial situation. In addition, insurance policies for homeowners in some hurricane-prone states won't pay for wind-related damage. It may be slightly lower than the hurricane deductible, sometimes as low as 1% of the insured value of the property.
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