What is hurricane insurance? Definition, coverage and cost

Editor’s Note: This article contains updated information from a previously published story.

Key points

• Before hurricane season starts is a good time to check your insurance coverage to make sure you’re financially protected.
• If you live in an area prone to hurricanes, you may need windstorm insurance.
• To be reimbursed for storm surge or hurricane flooding, you’ll need flood insurance.
• Hurricane insurance refers to a combination of insurance policies: home, flood and sometimes windstorm insurance.

The Atlantic hurricane season runs from June 1 through Nov. 30, so now is the time to make sure you have the right insurance policies in place. 

Here’s everything you need to know to ensure you’re properly insured and prepared for hurricane season.

What is hurricane insurance?

Hurricane insurance refers to a combination of insurance policies, including home insurance, flood insurance and, in some areas, windstorm insurance. Unfortunately, you can’t buy a single hurricane insurance policy. 

“Just as there is no tornado or hail insurance, there is no hurricane insurance,” said Mississippi Insurance Commissioner, Mike Chaney. 

Instead, to make sure your house is covered for all hurricane wind and water damage, you may need several policies, starting with homeowners insurance. 

Does home insurance cover hurricane damage? 

Home insurance includes the following types of coverage that can help when your home is damaged by a hurricane:

• Dwelling coverage. Pays for structural repairs to your house if it’s damaged by hurricane winds, like if a tree is blown onto your roof. 
• Other structures coverage. Pays for repairs to other structures, like a gazebo, if damaged by hurricane winds. 
• Personal property coverage. Pays for repairs to your belongings if they’re damaged by wind, like if your roof is ripped off and rain gets in and damages the belongings in your attic.
• Loss of use coverage. Pays for additional living expenses, such as hotel stays and restaurant meals, if you need to temporarily live elsewhere while your house is being repaired from damage covered by your policy. 

Does home insurance cover wind damage from hurricanes?

Standard homeowners insurance covers wind damage, but if you live in an area that experiences frequent hurricanes, your home insurance policy may exclude windstorm coverage or have a windstorm deductible that is higher than a regular home insurance deductible. 

If your policy does not cover windstorm damage, you may need to buy a wind coverage add-on or purchase separate windstorm insurance. 

How to get windstorm insurance

There are several ways to get windstorm coverage for your property:

• Add an endorsement to your homeowners insurance. Check with your home insurer to see if it offers a windstorm coverage endorsement. Note that this add-on coverage may have a separate deductible.  
• Purchase a separate windstorm and hail insurance policy. You may be able to purchase windstorm insurance as a separate policy from your home insurance. In Texas, for instance, the Texas Windstorm Insurance Association sells coverage to residents of coastal areas whose homeowners insurance policies do not cover windstorm damage. 
• Your state’s FAIR Plan. If you can’t find windstorm coverage through the voluntary insurance market, consider your state’s Fair Access to Insurance Requirements (FAIR) plan. FAIR plans are meant to be an insurer of last resort through a state-run pool. 
• Your state’s Beach plan. Similar to FAIR plans, Beach plans may offer windstorm coverage if you’re struggling to find it in the voluntary market. Only specific coastal communities in Atlantic and Gulf states offer these plans. 

Does home insurance cover water damage from hurricanes?

Home insurance covers water damage, but only certain kinds. While it can cover damage caused by wind-driven rain that gets in through a damaged roof, home insurance will not cover damage from floods, such as a storm surge. 

You’ll need separate flood insurance in order to be paid out for flood damage repairs to your property.

How to get flood insurance

Most flood insurance policies are administered by the National Flood Insurance Program (NFIP), which is backed by FEMA. The policies are sold through home insurance companies. Depending on where you live, you may be able to get an NFIP flood insurance policy through your home insurance company. Mark Friedlander of the Insurance Information Institute advises not waiting to buy flood insurance because it takes 30 days for an NFIP policy to take effect.

You can also purchase flood insurance through a private flood insurance company. The NFIP only covers up to $250,000 in building damages, whereas a private policy may provide more coverage.

Understanding hurricane insurance deductibles

A deductible is the amount of money subtracted from your insurance claims check. Hurricane deductibles are separate from your homeowners insurance deductible and use a percentage-based system.

“Hurricane deductibles, also known as named storm deductibles, are deductibles that apply to any named storm as designated by the National Weather Service and as further defined by statute. Named storm deductibles are typically a percentage of the value of the dwelling that is insured,” said Commissioner Chaney. 

Let’s say your house is insured for $300,000. Your homeowners deductible may be set at $1,000 or $2,000. Your hurricane deductible, however, will be a percentage of the $300,000, usually between 1% to 5%. If you have a 2% hurricane deductible, this means $6,000 will be subtracted from your claims check. 

States with hurricane insurance deductibles

Hurricane insurance deductibles first came into use in 1992 after a substantial South Florida storm resulted in massive losses for insurance carriers. 

Nineteen states and Washington D.C. have some form of hurricane or named storm deductible, including:

• Alabam
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Louisiana
• Maine
• Maryland
• Massachusetts
• Mississippi
• New Jersey
• New York
• North Carolina
• Pennsylvania
• Rhode Island
• South Carolina
• Texas
• Virginia
• Washington, D.C

Do I need hurricane insurance?

While home insurance will cover some of the aftereffects of a hurricane, it won’t cover everything — you still may want flood insurance to make sure you’re covered for repairs after flood damage.

You may also need to buy windstorm insurance if your homeowners policy excludes coverage based on where you live. 

Because coverage mandates and options vary by location, it’s important to know the requirements in your area. Contact your insurance agent to make sure you understand the coverage your home insurance policy provides, and any gaps in your coverage. 

Hurricane insurance costs

How much you pay for home insurance, flood insurance and windstorm insurance will vary based on where you live and how much coverage you want to buy, as well as other factors such as the deductible you choose. 

Let’s use Texas as an example. If you buy a combination of insurance policies in Texas, here’s an estimate of how much it could cost. 

• Home insurance costs an average of $2,983 per year in Texas. 
• Flood insurance costs an average of $669 per year through the NFIP in Texas.
• A wind and hail policy costs an average of $1,750 per year, according to the Texas Windstorm Insurance Association.

That means homeowners in Texas could potentially pay more than $5,000 per year for hurricane insurance. 

Check with your home insurance company to learn about discounts and ways to hurricane-proof your home, which could lead to lower rates.

Hurricane insurance FAQs