Texas has weathered some of the most devastating hurricanes in the nation’s history. These severe storms usually make landfall along the Gulf Coast and then proceed to move inland, leaving a trail of destruction in their wake.
When a hurricane begins to head your way, you might take comfort in the fact that your homeowners’ insurance will pay for any storm-related damage. But have you reviewed your policy to make sure this is the case?
Many homeowners’ insurance policies cover at least some types of damage due to hurricanes. However, especially in states like Texas that are very prone to hurricanes, there may be limits or special conditions on that coverage.
When does homeowners’ insurance cover hurricane damage? When does it not? Here’s a closer look.
Does Insurance Cover Hurricane Damage?
It’s hard to make general statements about home insurance coverage because there’s so much variation between policies and providers. There are some typical practices in the industry, but if you’re ever in doubt about whether something is covered, you should always consult your policy or ask your insurance agent for clarification.
When does homeowners’ insurance cover hurricane damage? Many (though not all) homeowners’ insurance policies will cover the following types of hurricane damage and other hurricane-related expenses.
Damage to the Structure of Your Home
Structural damage is one of the most important types of coverage to have during a hurricane. In just a few minutes or hours, a hurricane can damage a home in these ways:
- Roof damage (including lifting the roof entirely off the home)
- Interior water damage as a result of roof damage
- HVAC damage due to power surges
- Broken windows
- Exterior damage from flying debris
- Structural damage from fallen trees
While many home insurance policies will cover structural damage, some exclude wind damage or require you to have separate add-on coverage. Others may set separate deductibles for hurricanes, wind damage, or both.
Damage to Your Belongings
Most home insurance policies include what’s known as “personal property coverage.” This compensates you if you need to repair or replace furniture, appliances, and other personal items damaged or destroyed by the hurricane.
However, personal property coverage has a specific limit. Depending on your policy, this might be only several thousand dollars. To make sure you’re adequately covered, take an inventory of your valuables, furniture, and other personal property. Add up the cost to replace these items and make sure the total doesn’t exceed your personal property coverage limit.
Loss of Use Coverage
If your home is completely destroyed by a hurricane or if it needs significant repairs, loss of use coverage can save you money. This kind of coverage may pay for you to stay in a hotel, along with meals and similar living expenses, while your home is being repaired or rebuilt.
Understanding Hurricane Deductibles
Many home insurance policies have an entirely separate deductible for hurricanes. However, high winds during hurricanes, tornadoes, and derechos damage homes in similar ways. You may wonder how insurers distinguish between other types of wind damage and damage from hurricanes.
The answer lies in something called a “named storm deductible,” or hurricane deductible. If a tropical storm becomes serious enough, the World Meteorological Organization gives it a name. If that named hurricane then reaches land and damages your home, your separate hurricane deductible kicks in.
Hurricane deductibles are usually expressed as a percentage of a home’s insured value instead of as a flat figure. How does homeowners’ insurance cover hurricane damage when your hurricane deductible is in effect? The best way to understand is by considering an example.
Imagine you live in an area where hurricane damage is very likely to occur. Your hurricane deductible is 5% of your home’s total dwelling coverage. You have $300,000 in dwelling coverage, so your hurricane deductible is a hefty $15,000.
An especially bad hurricane tears through your neighborhood, leaving your home with damage that will cost $30,000 to fix. Assuming your insurance claim is approved, you would need to pay the first $15,000 (the amount of your deductible). Your insurer would pay the remaining $15,000.
Whether you are subject to a hurricane deductible depends on your insurance company and your particular policy. However, one of the biggest factors in whether an insurance provider will require a hurricane deductible is location. The higher the risk of hurricane damage in your area, the greater the chance you’ll have a named storm/hurricane deductible.
For example, if you live in Galveston or another city close to the Gulf Coast, you are more likely to have a separate hurricane deductible than if you live in West Texas.
Does Homeowners’ Insurance Cover Hurricane Damage Caused by Flooding?
The most obvious type of hurricane damage happens when the storm passes over and high winds damage or destroy structures. However, storm surges are even more destructive than high winds during hurricanes. Floodwaters can enter your home, damaging its foundation and destroying your belongings.
Flooding is another area where homeowners’ insurance becomes less than clear. Does insurance cover hurricane damage from floods?
Unfortunately, most standard homeowners’ insurance and hurricane insurance policies do not cover damage from flooding.
Although home insurance companies covered flooding decades ago, the sheer volume and monetary cost of flood damage made it financially impractical to offer this type of coverage. As a result, the government created the National Flood Insurance Program (NFIP) to help homeowners in flood-prone areas.
Depending on your home insurance provider, the NFIP may not be your only option. You might be able to purchase optional add-on flood coverage from your current provider. If you aren’t sure whether your insurance company offers this coverage, get in touch with your agent.
How to Boost Your Chances of a Successful Hurricane Damage Claim
If you’ve just survived a hurricane and your home has been seriously damaged, it might be hard to think straight. However, you should do your best to assemble a strong insurance claim (and avoid several common mistakes while doing so). Here are a few tips for filing a successful claim.
Document Absolutely Everything
When it comes to hurricane damage, insurance companies won’t just take your word for it. You need to have clear and convincing documentation of the damage.
Collecting both photo and video evidence is ideal, and you can’t really have too much of it. Make sure to take close-up photographs of every bit of damage you can find, preferably from multiple angles. If you take too many pictures, you can always select the best ones to send to the insurer.
Take Steps to Limit Further Damage
Don’t make permanent repairs before the insurance adjuster has a chance to visit your home and inspect it in person. However, many insurers require you to take reasonable steps to reduce further damage. For instance, if the storm created a hole in your roof, you should put up a tarp or something else to prevent more water from getting in.
File Your Claim as Soon as Possible
After a hurricane, insurers are inundated with claims. The faster you submit your claim, the faster you’ll likely get a result.
Tell the Insurer if Its Offer Is Unfair
Many insurers will start by offering homeowners low settlements just to see if they’ll accept. If your insurer gives you a too-low offer, politely but firmly ask it to reconsider. Providing repair estimates or reemphasizing your most important evidence may help.
Be Polite and Easy to Work With
It’s easy to see the insurance company as the enemy, especially if it is resisting paying you in full for your claim. However, do your best to be polite and cordial. While there are no guarantees as to whether your claim will be approved, being combative isn’t likely to improve your chances.
Consult a Lawyer When Needed
Sometimes, insurance companies cooperate and pay what they’re required to. However, if you think your insurer’s offer is too low (or if it’s denying something you believe should be covered), don’t hesitate to reach out to an experienced insurance lawyer.
Having Trouble With Your Homeowners’ Insurance Claim?
Is your insurance company refusing to pay your claim or delaying it unreasonably? Have you reviewed your policy and determined that it should be covered? This isn’t rare.
Some insurance companies are ethical and will pay claims as agreed. Unfortunately, many are not above resorting to ethically questionable or blatantly illegal tactics to avoid spending money. These insurance companies might do whatever they can to avoid paying claims, especially after mass disasters like Hurricane Beryl.
If your insurer refuses to pay what it should for hurricane damage, you don’t have to fight back alone. Brasher Law Firm team is dedicated to helping Texans stand up to unreasonable insurance companies and recover the compensation that’s rightfully theirs. Give us a call or send us a message today to book your free consultation.