Insurance helps you avoid financial catastrophe if a hurricane strikes your home. But you may be surprised to learn there’s no such thing as a hurricane insurance policy. Hurricane insurance usually refers to a combination of home, flood, and windstorm coverages that each come into play depending on the type of hurricane damage.
If you live somewhere with frequent hurricanes, having home insurance isn’t enough. A standard home insurance policy doesn’t cover flooding, a common cause of hurricane losses due to storm surge. Your policy may also exclude wind damage, depending on where you live.
What is hurricane insurance?
Hurricane insurance doesn’t technically exist, at least as a standalone policy. Usually, hurricane insurance refers to a patchwork of coverages, primarily homeowners insurance, flood insurance, and windstorm insurance (if wind damage is excluded by your policy) that kick in if a storm damages your home or personal property.
Most home insurance covers damage from rain and wind, but for protection from flood damage, you usually need separate flood insurance. If you live somewhere vulnerable to hurricanes, you may also need additional coverage for windstorm damage.
Private coverage vs. NFIP coverage
If you want a private flood insurance quote, you can contact insurers directly or work with an agent. Private flood insurance can be cheaper and offer higher coverage limits, but a private insurer can refuse to renew your policy or raise your rate substantially if it determines your property is at high risk of flooding. Also, forgoing an NFIP policy could mean you lose out on stable rates and cost-saving subsidies.
Learn more: How FEMA flood insurance works
Insurance deductibles for hurricanes
A home insurance deductible is the out-of-pocket cost you pay before coverage kicks in. In the following 19 states plus the District of Columbia, separate and distinct deductibles apply to damage from a named storm:
- Alabama
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Louisiana
- Maine
- Maryland
- Massachusetts
- Mississippi
- New Jersey
- New York
- North Carolina
- Pennsylvania
- Rhode Island
- South Carolina
- Texas
- Virginia
- Washington, D.C.
In some other states, home insurance companies are allowed to charge separate hurricane deductibles. Insurers can also charge separate windstorm or wind/hail deductibles.
Named storm deductibles are frequently assessed as a percentage of the home’s value, often ranging from 1% to 10%, according to the National Association of Insurance Commissioners (NAIC). Suppose you have a 6% named storm deductible and your home is valued at $400,000. You’d be on the hook for $24,000 if a hurricane damaged your home before insurance would kick in.
You’ll also need to pay a deductible if you file a flood insurance claim. NFIP deductibles are usually between $1,000 and $10,000.
How much does hurricane insurance cost?
Your annual premiums for various types of hurricane coverage depend on a host of factors, but here are some typical costs from various sources:
- Median cost of homeowners insurance for an HO-5 policy with $300,000 to $324,999 worth of dwelling coverage: $1,243, according to NAIC 2022 data
- Typical cost of home insurance in states with separate hurricane or windstorm deductibles, according to The Zebra: $349 to $2,000+
- Median cost of flood insurance through NFIP: $786
Learn more: How much is homeowners insurance? A guide to lowering costs.
