Hurricane insurance is something everyone should consider who lives in areas of the country that are prone to hurricanes, but this type of insurance can cover tropical storms as well, and is therefore not limited to those subject to hurricanes. The following are three things about this type insurance you need to understand.
What this insurance covers
The two main areas of damage that a policy will cover are those that relate to wind and hail. In most cases, the biggest dollar value of damage will be due to the wind, but it should be noted that in some storms, the hail can become large enough to cause significant property damage. It should be pointed out that any damage done by flooding is not covered. No company will include this in their policy, but all structural damage from the wind and hail will be covered.
Deductibles are defined differently
Unlike deductibles for other types of insurance that are stated as a specific dollar amount, deductibles for these policies are usually stated as a percentage of the damages. The reason for this is that hurricanes have the potential to create enormous damage, and sometimes completely destroy a house or building. You should understand what the deductible is at the time you receive a quotation. You can easily calculate how much money you will have to pay when you file a claim.
You may mistakenly believe you are already covered
The chances are that any property insurance that you presently have, will not cover damage from the severe storms mentioned above. Although your present policy may cover such disasters as a fire, an insurance company sees a hurricane differently. This natural disaster can create damage across a wide area and inflict huge monetary liabilities for an insurance company. This is why hurricane insurance policies are sold separately. If you believe you have this coverage, you likely do not. Any policy you presently have, you need to read carefully.
If you are a property owner and live anyplace where there can be tropical storm or hurricanes, you need to have this type of insurance. Without it, you are only one natural disaster away from losing everything.