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Homeowners insurance protects the dwelling, your personal belongings, and offers personal liability coverage for injuries that happen on your property. However, homeowners insurance alone isn't enough to cover hurricane damage because flooding is not covered under homeowners insurance. Flood insurance by itself doesn't offer enough protection, either.
To fully protect your home from hurricane damage, homeowners and flood insurance are recommended. If you live in hurricane-prone areas, you may be required to have an additional windstorm rider to your homeowners insurance.
Homeowners insurance covers the property from damage, referred to as insurance perils. A peril is an event that may damage your home or belongings. Common insurance perils include fire, lightning, theft, ice, snow, sleet, smoke, vandalism, and freezing.
Coverage | Included with homeowners insurance? |
Dwelling/Structure | Yes |
Personal liability | Yes |
Personal belongings | Yes |
Loss of Use (additional living expenses) | Yes |
High-end electronics/special jewelry | Limited, requires add-on* |
Equipment breakdown | Yes |
Electrical outage | Yes* |
Service lines | Yes* |
Cyber liability | Yes* |
Water damage | Yes |
Flood | No** |
Earthquake | No* |
Wind and hail | Yes, but not high-winds*** |
*Available as add-on coverage if not part of policy
**Flood insurance is available through the NFIP and approved insurers
***If you live in hurricane or tornado areas, additional windstorm rider may be required
Floods, earthquakes, government seizures, mudslides, ordinance updates, sewer backups, and sinkholes are perils that will not be covered by homeowners insurance, according to Hippo Insurance. Those will require add-on coverage using a rider policy.
The majority of homeowners who experienced flooding in 2020 did not live in flood zones and were not covered under their homeowners insurance. According to FEMA, 30% of all flood damage claims happen in low to moderate-risk zones, where flood insurance is not required.
"Flooding is one of the most common and costly natural disasters in the US, and given we are in the midst of an above-average hurricane season, consumers need to ensure that they will not be left exposed if their homes are hit hard by a storm," said Ralph Blust, CEO of the National Flood Services. NFS administers flood insurance on behalf of FEMA and the National Flood Insurance Program (NFIP).
Homeowners who live outside of high-risk flood zones and do not have flood insurance will pay for damage out of pocket because flood damage isn't covered under homeowners insurance. According to Blust, one inch of flood damage alone can cost a household up to $20,000.
Hurricane insurance refers to the coverage necessary to cover hurricane damage. Damage from a hurricane is typically caused by winds and flooding. Damage to your home from winds is usually covered under your homeowners insurance as an insurance peril. However, if you live in hurricane zones or coastal areas, you may be required to get an additional rider for high-coverage windstorm damage.
Homeowners insurance usually covers water damage to your home, but there are exceptions like flooding. Water damage due to flooding is not covered under homeowners insurance and requires separate flood insurance coverage.
If you live in a high-risk flood zone, you're required to purchase flood insurance. However, due to climate and weather changes, we're seeing more storms and damage happening outside target flood areas.
Proper hurricane insurance requires a combination of homeowners and flood insurance. If you live in certain states, it could include additional coverage for windstorm damage.
To properly protect your home from hurricane damage, it's recommended that you purchase both homeowners insurance and flood insurance. Your state may also require an additional windstorm rider to your homeowners insurance if you live in a hurricane zone.
The average annual homeowners insurance premium in the United States in 2017 was $1,211, according to the National Association of Insurance Commissioners (NAIC). Flood insurance will be in addition to your homeowners insurance policy. Blust said the average flood premium is around $830 annually. Together, this is $2,041.
If you live in an area that requires windstorm riders, it will be an additional cost on top of homeowners and flood insurance and varies geographically.
Hippo Insurance's Wilson recommends taking the following steps:
After experiencing a disaster, Wilson recommends staying in touch with your homeowners insurance company to let them know what's going on at your home and take the following steps when submitting insurance claims: