Homeowners Facing Hurricanes

After a hurricane, your entire life may have been turned upside down, damaging your home and losing your dearest possessions. Wind and water can destroy your property and ruin all belongings inside. As you strategize rebuilding, you might have questions about who will pay for the damage and what to do in the meantime.

Property damage claims can depend on your state and the city or county where your home is located. If you have questions about property damage after flooding or a hurricane, talk to a homeowner’s insurance lawyer in a city near you for help rebuilding your home.

What Is Hurricane Insurance, and Do You Need It?

Homeowner’s insurance policies cover damage to your property or loss of possessions from fire, theft, or other disasters. If your home was damaged or you suffered property loss, you can file a claim with the insurance company to pay for the damage. However, the insurance company will only pay for covered losses, and may only cover a portion of the damages up to the maximum amount of coverage.

Hurricane coverage generally has a separate deductible from the standard homeowner’s insurance deductible. When a tropical storm or hurricane causes wind damage, any damage caused by the storm may be subject to the hurricane policy. The amount you may be able to recover in hurricane damage can be based on your policy limit and the deductible.

The deductible is the amount of money the homeowner must pay before the insurance company steps in to cover the rest. Your insurance company may set the deductible as a fixed dollar amount, or calculate it as a percentage of the total insurance policy. Most insurance companies in hurricane areas offer a percentage-based hurricane deductible.

For example, if a homeowner in Orlando has a homeowner’s insurance policy of $1 million and a hurricane deductible of 5%, the homeowner would be responsible for the first $50,000 in damages, and the insurance company would pay for the remainder. A lower deductible will generally cost more in insurance premiums.

Does a Hurricane Policy Cover Flood Damage?

Many homeowners protected by homeowners insurance and hurricane deductibles are surprised to learn that their property damage claim is not covered because they did not have flood insurance. Flood damage that is caused by a hurricane may not be covered by hurricane insurance. Hurricane insurance generally covers wind damage, but not damage from rising water. Nonetheless, some homeowners may be required to carry flood insurance by their mortgage company.

Does Homeowners Insurance Cover Hurricanes?

Not all homeowners insurance policies cover hurricanes. However, most property insurance policies along the Atlantic Coast are required to include coverage for wind damage caused by hurricanes. States that require hurricane coverage include:

• Alabama
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Louisiana
• Maine
• Maryland
• Massachusetts
• Mississippi
• New Jersey
• New York
• North Carolina
• Pennsylvania
• Rhode Island
• South Carolina
• Texas
• Virginia

The insurance deductible for hurricane damage differs from the deductible for general homeowner’s insurance.

For example, a homeowner in Miami, Florida, may have a $300,000 insurance policy with a $500 general deductible but a 5% hurricane deductible. Thus, if the homeowner suffered property damage caused by a covered fire (covered under the general insurance), the homeowner would have to pay $500 before the insurance company would cover the rest. However, in a hurricane, the homeowner would have to pay $15,000 (5% of $300,000) before the insurance company would step in to cover the rest of the damage.

You must check your insurance policy and follow up with your insurance provider to make sure you understand what is covered and what is not. Other types of coverage you may want to consider in the event of a hurricane include flood, water, and water backup coverage.

Facing Foreclosure After a Hurricane

Many homeowners struggle to get by, even without the threat of a natural disaster. Damage from a hurricane, tropical storm, or tornado can result in losing all your possessions, including your home. Financial hardships can last for months after a natural disaster destroys your home. Property owners can quickly face foreclosure after a hurricane without the money to pay their mortgage while still trying to repair their homes to make them habitable.

Federal government programs may be available to help you keep your home after a natural disaster. Federal government disaster relief can be available under:

• Federal Emergency Management Agency (FEMA) for assistance after a natural disaster
• Federal Housing Administration (FHA) Foreclosure Moratoriums to pause the foreclosure process
• Housing and Urban Development (HUD) relief

Hurricane Insurance Claims in Florida

Although Florida law does not require the purchase of windstorm insurance, lenders may require homeowners to obtain such a policy. Where a customer has purchased a hurricane policy, property insurance companies in Florida are required to include coverage for wind damage resulting from a storm that the National Hurricane Center (NHC) declares to be a hurricane.

Hurricane coverage can consist of damage to the outside of the home and damage to the interior caused by wind or rain. But once again, hurricane coverage will generally not provide for water damage caused by flooding. For example, if a homeowner in Fort Myers has their flooring damaged by rain that has entered through the windows broken by wind damage, the wet flooring may be covered by their hurricane coverage. However, if caused by rising flood waters from the hurricane or tropical storm, the flooring damage would be covered by the flood insurance policy.

Business Owners Facing Hurricane Damage

Business insurance policies can be more complicated than homeowner’s policies. Thus, commercial property owner may have a different experience dealing with hurricane damage than a homeowner. A commercial property policy may have more exclusions and different levels of deductibles. However, businesses may have the additional losses of being unable to operate as a business while the property is damaged. Talk to a commercial insurance attorney or business lawyer for advice on dealing with a property claim after a hurricane.