Florida Homes: Hurricane Insurance Essential

Florida is the most hurricane-prone state in the continental US, and every year, hurricane season brings the potential for devastating storms that can damage homes and businesses. While hurricane insurance isn't mandatory in Florida, it is included in standard home insurance policies. This means that if you own property in Florida, you will likely have hurricane insurance as part of your standard insurance policy. This insurance typically covers wind damage, storm surges, and damage from named storms. However, it's important to note that there are some exclusions to standard policies, such as sewer/drain backup, flooding, wind damage, mold growth, and personal belongings.

Hurricane insurance isn't mandatory in Florida but is bundled with standard home insurance policies

Hurricane Insurance in Florida

It's Not Mandatory, but It's Included in Standard Home Insurance Policies

Although hurricane insurance isn't mandatory in Florida, it's a wise investment given the state's hurricane season, which runs from June 1 to November 30. During this period, residents brace for potential storms, fortifying their homes against the destructive winds and, if necessary, evacuating to safety.

While hurricane insurance isn't sold as a stand-alone policy in Florida, it's typically bundled with standard home insurance policies. This means that most Floridians with home insurance are already covered for hurricane damage, including wind damage, without needing to purchase additional coverage.

However, it's important to note that standard policies have certain exclusions. For instance, they typically don't cover sewer or drain backup, flooding, wind damage, mold growth, or damage to personal belongings. For these scenarios, additional coverage may be necessary.

Understanding Deductibles and Coverage Limits

When it comes to hurricane insurance in Florida, it's crucial to understand deductibles and coverage limits. A deductible is the amount you must pay out of pocket before your insurance coverage kicks in. In the context of hurricane insurance, Florida law mandates specific deductible options: $500, 2%, 5%, or 10% of the policy dwelling or structure limits.

Additionally, hurricane insurance coverage in Florida typically applies to damage or loss from windstorms that occur during a hurricane, as outlined in your specific home insurance, renters insurance, or condo insurance policy. It's important to carefully review your policy to understand what is and isn't covered.

Cost of Hurricane Insurance in Florida

The cost of hurricane insurance in Florida varies depending on several factors, including the value of your home and its location. On average, Florida homeowners pay approximately $2,674 per year in premiums to protect against hurricane damage, according to Bankrate. This includes the cost of homeowners insurance and flood insurance, which are often needed in combination to safeguard against hurricane-related losses.

While hurricane insurance isn't mandatory in Florida, the high risk of hurricanes in the state makes it a crucial consideration for homeowners. The good news is that standard home insurance policies typically include hurricane coverage, ensuring that Floridians have one less thing to worry about when bracing for these powerful storms.

Flood insurance is not included in hurricane insurance and must be purchased separately

In Florida, hurricane insurance is bundled into homeowners, condo, and landlord insurance policies at the time of purchase. This means that hurricane insurance isn't sold as a separate policy in Florida. However, it's important to note that flood insurance is not included in hurricane insurance and must be purchased separately.

While hurricane insurance covers damage caused by hurricanes, tropical storms, and other named storms, it does not typically cover flooding. Flooding is one of the most common exclusions in standard hurricane insurance policies, so it is important to be aware of this and plan accordingly. If you live in an area that is prone to flooding, purchasing additional flood insurance is essential to protect your home.

The reason flood insurance is not included in hurricane insurance is that flooding is often caused by factors other than hurricanes, such as overflowing rivers or heavy rainfall. Additionally, the impact of flooding can be more widespread and difficult to predict compared to hurricane damage. As a result, insurance companies treat flood insurance as a separate type of coverage.

In Florida, you can purchase flood insurance through private insurance companies or the National Flood Insurance Program (NFIP) offered by the Federal Emergency Management Agency (FEMA). The average cost of flood insurance in Florida is $958 per year for an NFIP policy, which is higher than the national average of $888 per year.

It's important to carefully review your hurricane insurance policy to understand what is and isn't covered. In addition to flooding, standard hurricane insurance policies may also exclude coverage for sewer or drain backup, wind damage, mold growth, and damage to personal belongings.

A hurricane deductible is separate from a home insurance deductible and is based on a percentage of the home's insured value

In the US, hurricane insurance is included in standard home insurance policies. However, it is important to note that hurricane deductibles are separate from regular home insurance deductibles.

A hurricane deductible is a relatively new addition to insurance policies. It is based on a percentage of the insured value of a house, rather than a flat dollar amount. This is usually between 1% and 5% but can be higher in some coastal areas. For example, a home insured for $200,000 with a 2% hurricane deductible would require the policyholder to pay the first $4,000 of repairs if the damage was caused by a hurricane.

In Florida, hurricane deductibles are required by law. The Florida Office of Insurance Regulation requires insurance companies to offer specific deductible amounts to residents and communities, including $500, 2%, 5%, and 10%. The percentage is calculated, and the dollar amount is listed on the policy's declarations page.

It is important to note that hurricane deductibles only apply to damage caused by hurricanes, as defined by the National Weather Service or the US National Hurricane Center. The deductible applies from when a hurricane watch or warning is issued for any part of Florida, during the duration of hurricane conditions, and for 72 hours after the last watch or warning ends.

Additionally, hurricane insurance does not cover flood damage or vehicle damage. Flood insurance must be purchased separately, and vehicle damage requires comprehensive insurance as part of an auto policy.

Hurricane insurance covers damage to the structure of a home but not personal belongings

Hurricane insurance is not a stand-alone policy but is usually included in standard homeowners insurance. It covers damage to the structure of a home caused by hurricanes, tropical storms, and other named storms. This includes damage from heavy winds, such as shingles or siding being ripped off. However, it is important to note that hurricane insurance typically does not cover personal belongings.

In Florida, hurricane insurance is not mandatory, but it is included in standard home insurance policies. Florida law requires a windstorm deductible for named tropical cyclones, and insurers must offer a hurricane deductible option of $500, 2%, 5%, or 10% of the policy dwelling limit. This deductible is separate from the regular deductible and is based on a percentage of the home's insured value.

While hurricane insurance covers wind damage, it does not cover flood damage or vehicle damage. For flood coverage, residents can purchase flood insurance through the National Flood Insurance Program or from private insurers. Additionally, comprehensive insurance as part of an auto policy can cover vehicle damage caused by hurricanes.

Discounts are available to offset the cost of hurricane insurance, such as installing wind-resistant features

Florida law requires insurance companies to offer discounts to homeowners who have existing building features or have made home improvements that reduce damage and loss from hurricanes. These can include hurricane shutters, heavy-duty locking devices, and reinforced track systems. For example, installing hurricane shutters can result in a 30% discount on the windstorm premium.

To find out what specific discounts are available to you, contact your insurance agent or company directly. The amount of the discount and the criteria needed to receive it will vary depending on your insurance company and policy. For example, you may need to have your roof inspected by a certified wind inspector or have shutters that meet a specific wind resistance rating.

To apply for a discount, you will need to submit documentation such as photos of the installed items, proof of purchase, and installation. Be sure to keep copies of all documentation and verify the date submitted and the mailing verification information. You should also request confirmation of when the discount will take effect and the form it will take (e.g. a premium discount, credit to your premium balance, or refund on the premium paid).

It is important to note that even with discounts, hurricane insurance can still be costly, especially when factoring in the high deductibles that may apply.

Frequently asked questions