Owning a home is a significant investment, so protecting it is crucial for your long term financial benefit. When a natural disaster hits, it’s important to feel secure in knowing that you’re covered no matter what. Disasters can cause immense damage to your home and cost thousands of dollars. It is important to ensure adequate protection against potential financial losses during a serious weather event. Learn and understand the basics of disaster insurances such as hurricane deductibles, wind, and flood insurance.
A hurricane deductible is an additional, specific deductible applied to insurance claims that resulted in damages due to hurricanes or a named storm. This is different from the standard insurance deductible for other claims such as fire or theft. The hurricane deductible is calculated as a percentage of the insured value of your home. This often ranges from 1% to 5%, but depending on your policy and location it could be more. A hurricane deductible is applied when a named hurricane or tropical storm is declared by the National Weather Service or another recognized meteorological authority. It typically applies to damages to your home’s structure and specifically to damage caused by wind, which is a common hazard during hurricanes.
Wind insurance typically covers damages caused by severe winds. Generally this will cover damage to your home's structure such as roof damage, broken windows, etc. Similar to hurricane deductibles, it may be a percentage of your home’s insured value. We recommend taking mitigation measures, such as reinforcing doors and windows, always maintaining your roof, and installing storm shutters can help protect your home. Doing these things can reduce your potential damage and cost for repairs, as well as showing your insurance company you are demonstrating proactive risk management, which can potentially lower your premiums. Be sure to be fully aware of your insurance policy and any exclusions. Damage based claims can sometimes exclude certain types of wind damage, such as things with signs of gradual wear and tear or neglect from not being properly covered.
Flood insurance is a separate policy needed that covers damages caused by water, such as heavy rains, hurricanes, or overflowing rivers. Standard homeowner’s insurance policies do not cover floods. This insurance covers damage to the foundation of your home, flooring, walls and systems like plumbing and electrical. Flood insurance also covers personal belongings as well, but some coverage limits may apply. FEMA (Federal Emergency Management Agency) calculations show that just 3 inches of water in your house can cost you about $12,000, likely needing to replace baseboards, carpeting/flooring, drywalls, and furniture. This estimate is based on a 1,000 square foot, single story home, where damages increase to about $21,00 for 6 inches of water. Damage of 18+ inches under water then goes up to the flooding of appliances, replacing cabinetry as well as doors, estimating repairs $30,000 and up. The days of the misconception that flood insurance is not a necessity are over. Statistics show that people who live outside high-risk areas file more than 25% of flood claims nationwide.
Comments