Occurring between mid-August and late October, hurricanes are a serious threat to lives and properties in Florida. It is not uncommon that these tropical cyclones lead to the damage of thousands of homes.
With the state’s vulnerability to hurricanes, having the right insurance is crucial for safeguarding your property and peace of mind.
In this blog, we will learn the important aspects of hurricane insurance in Florida, including coverage, deductibles, and how to save on premiums. Let’s get started.
What is a Hurricane Insurance in Florida?
There is no separate hurricane insurance policy for homeowners in Florida.
Your standard homeowners insurance covers hurricane damage. This means you will get coverage if your home is damaged by hurricane winds.
However, it’s important to note that while windstorm damage is generally covered, flooding is not. Flood insurance is a separate policy, but your homeowners insurance might cover water damage resulting from wind damage.
For example, if rain enters your home through a roof damaged by hurricane winds and causes damage to your belongings, this may be covered under your policy.
We already have a blog on flood insurance which you can read HERE.
What Does Hurricane Insurance Cover?
Since hurricane coverage is part of your standard homeowners insurance, it typically includes the following:
Your Dwelling: Coverage for the structure of your home.
Other Structures: Protection for additional structures on your property, such as a garage, fence, greenhouse, or shed.
Personal Belongings: Protection for clothing, furniture, and other household content.
Temporary Relocation Costs: Coverage for temporary housing if your home is not suitable to live in due to hurricane damage.
Additional Expenses: Costs for water, food, and gas while temporarily relocated.
You can enhance your coverage by choosing insurance riders or add-ons. For example, you can extend your policy to include costs associated with screened enclosures, aluminum-framed carports, or awnings.
Understanding Hurricane Deductibles
Of course, your home insurance protects against wind damage. However, it also comes with a special hurricane deductible to cover the damage caused by a storm. A deductible is the amount you pay out of your pocket while your insurer pays the rest.
Coming to hurricane deductibles, are different from standard deductibles. Moreover, they are specifically applied to hurricane damage.
Florida allows homeowners to choose a hurricane deductible, typically a percentage of their home’s insured value rather than a fixed amount.
For instance, if you have $300,000 in dwelling coverage and a 2% hurricane deductible, you would pay $6,000 out-of-pocket for a hurricane claim. Additionally, your AOP (All Other Perils) or standard deductibles might still apply if your home is damaged by something other than hurricane winds.
When Do You Have to Pay a Hurricane Deductible in Florida?
Your hurricane deductible in Florida starts when the government issues a hurricane watch or warning for any part of the state. This coverage lasts for 72 hours after the warning ends. If a hurricane is coming or has recently passed through Florida, your hurricane deductible applies.
Fortunately, a Florida hurricane deductible only applies once per hurricane season. If multiple named storms cause damage in the same season, you only pay the hurricane deductible once.
How Much is Hurricane Insurance in Florida?
Due to the heightened risk of hurricanes and recent increases in hurricane activity, Florida homeowners insurance rates have risen. According to one study, an average Floridians pay more than $4000 annually for home insurance which is three times the national average.
However, your premium isn’t solely determined by location. Other factors affecting cost include:
- Home Construction: The materials and design of your home.
- Windstorm Mitigation Measures: Steps taken to make your home more resistant to wind damage.
- Age of Your Home: Older homes may have higher premiums.
How to Save Money on Florida Hurricane Insurance
Despite the high cost of insurance in Florida, there are ways to save:
- Wind Mitigation Inspection: Completing an inspection that demonstrates your roof’s resistance to hurricane winds may qualify you for a discount.
- Home Security Systems: Installing systems to protect against burglars and fires can lower premiums.
- Secured Community: Living in a community with security measures, such as a guard, may earn you a discount.
- Leak and Flood Detectors: Investing in these devices can help mitigate water damage and potentially reduce your insurance costs.
Is Florida Hurricane Insurance Required?
Florida hurricane insurance isn’t mandatory because it’s not a separate policy. However, having the right homeowners insurance policy before hurricane season is essential. Not only does it protect your home against the financial constraints caused by hurricane damages, but also gives better access and deals on the policies.
Don’t wait to buy or change your home insurance until a hurricane threatens. Insurance companies often stop selling or modifying policies when a storm is approaching.
How to Know if a Provider Covers Hurricane Damage
Sure. Your homeowners insurance covers hurricane damage. However, it is important to review the policy document to see the extent of the cover. In other words, see if you have sufficient protection during hurricane season. Check if sections mentioning “hurricane damage” or “wind damage” are listed in the policy.
One more thing—look for special deductibles to be applied for hurricane damage. These deductibles show that hurricanes are a covered peril.
Your insurance agent can provide clarity on whether such damage is covered.
The Conclusion
Understanding Florida hurricane coverage is crucial for homeowners in the Sunshine State. By familiarizing yourself with the specifics of your policy, deductible options, and ways to save on premiums, you can ensure your home is protected against the unpredictable forces of nature. Don’t wait for the arrival of a hurricane. Get your house covered now!
