By Michael vivar
The 2024 hurricane season has been tempestuous. The United States Gulf Coast has been hit with the one-two combination punch of Hurricanes Francine and Helene.
The monetary damage from Francine is $9 billion and rising due to lost business. The toll from Helene, a stronger system, hasn't yet been calculated.
Amid the turmoil, Americans are curious whether their home insurance covers hurricane damage. The truth is that no overall plan exists for meteorological disasters.
The following will review a combination of insurance plans needed to recover from a hurricane including homeowners, flood and wind.
This general coverage is extremely variable depending on a home's location. Almost all cover theft, fire/smoke damage and vandalism.
Many plans cover weather damage (e.g. wind, vehicle damage, etc.). Homes in hurricane-prone areas require homeowners to purchase these coverages separately.
This coverage will compensate homeowners for wind damage which usually affects roofs, siding, soffits and gutters.
The purchase of a home in a designated flood zone requires flood insurance. Keep in mind, FEMA flood disaster relief averages $5,000 while average flood claims are $40,000.
Homeowners insurance, which normally covers vehicle damage to cars parked in a driveway, doesn't cover hurricane damage. Consider a comprehensive car insurance plan.
A deductible is the amount a homeowner pays for repairs out-of-pocket before insurance kicks in. Normally, the deductible is a reasonable fixed dollar amount.
Deductibles for damage caused by storms named by the National Weather Service can be as high as 10% of a home's insured value.
For instance, one would need to spend $50,000 on repairs to a $500,000 home before the insurance company pays out.
Buying a home and insuring it brings peace of mind to a family. However, in a hurricane-prone area, that peace of mind may be costly.
Read everything before signing anything.