Hurricane Insurance In Florida: Definition & Coverage

What is hurricane insurance? 

Hurricane insurance is a combination of insurance policies you can purchase to keep your home protected from hurricane damage, including flood, wind damage, and home insurance.

For clarity’s sake, it’s important to state that there is no standalone hurricane insurance policy. Being financially protected from hurricane damage is usually something included in other policies that you already have. This means that your home insurance, boat insurance, or RV insurance might have some sort of special hurricane coverage option provided. 

Hurricane insurance coverage in Florida

When obtaining hurricane coverage, that coverage is usually included in a special clause or endorsement in a homeowners insurance as well as a flood insurance policy. 

Many insurance companies in Florida require property owners to buy a special hurricane endorsement on top of their existing homeowners insurance policy. This endorsement is what allows you to be eligible to file a claim for damages caused by a storm that is classified as a hurricane. Without this endorsement, homeowners in Florida will find it difficult to be financially compensated for hurricane damage. 

So why do we have to specify both homeowners and flood insurance? The reason for that is that homeowners insurance usually excludes all damages caused by flood damage. Flood insurance is a distinct category of insurance that you might want because hurricanes often cause floods, and even homeowners insurance with a hurricane endorsement won’t cover that flood damage. 

At the end of the day, it is often advisable to get comprehensive homeowners coverage that includes hurricane coverage and then procure supplemental flood insurance. This way, you can maximize your chances of financial protection. 

Notably, home insurance policies also include loss of use insurance. This can be extremely helpful in case of an evacuation due to a hurricane or if the repairs necessary are so extensive that you must live somewhere else for the time being. It means that the insurance company may cover your additional living expenses in these situations. 

Is it worth getting hurricane insurance in Florida?

If you take a look at the typical costs of hurricane damages versus how much the average cost of insurance in Florida is, it can help you make a more informed decision on whether you need to add hurricane coverage to your other insurance policies.

Average annual cost of Florida hurricane coverage 

Typically, a homeowner in the Sunshine State will want to carry both home insurance and flood insurance policies in order to be sufficiently protected in case of a devastating hurricane. 

The average cost of homeowners insurance in Florida is around $2000, whereas the average cost of flood insurance is around $600. In order to be adequately protected against hurricane damage, the annual cost you might have to pay could be around $2600 a year!

How much do hurricanes damage Florida?

When it comes to weather disasters, hurricanes can be catastrophic. Since Florida is along the coast, the state often finds itself sustaining billions of damages when a severe hurricane category hits. 

According to the National Oceanic and Atmospheric Administration (NOAA), the annual expected costs of hurricane winds and storm related flood damages total $54 billion. 

A hurricane does not necessarily need to be a Category 5 hurricane like Hurricane Katrina or Hurricane Maria to cause devastating damage. All hurricanes can cause extensive, widespread damage, leaving behind a wake of loss. 

Do you have to pay higher deductibles for hurricane damages in Florida?

The deductible is the amount of money you have to pay before insurance kicks in and helps you out financially. The lower your insurance premium, the higher the deductible, whereas if you have a low deductible on your policy, you would have to pay more each month.

In Florida, insurers are required to offer homeowners certain hurricane deductibles when it comes to damages to your home: $500, 2%, 5%, and 10% of the value of your home. If a storm has been officially declared a hurricane by the National Weather Service, it might end up subjecting Florida residents to higher insurance deductibles.

Should you get hurricane insurance this year?

Every year, the NOAA forecasts the severity of hurricanes in the upcoming months. It can be a good idea to check on NOAA to see whether there is a dangerous hurricane coming up. If you live in Florida, you will probably already hear of hurricane warnings from friends and family if there is a bad hurricane on the way. 

However, insurance can potentially be considerably more expensive or difficult to obtain if you get it shortly before a natural disaster strikes. For example, flood policies typically take 30 days before they go into effect. If you do not have coverage a month before a storm is incoming, then you might be denied flood coverage. 

Insurance companies are more than aware of the potentially debilitating costs of hurricane damages, so it is always important to know what policy you may want to have in advance so you are prepared in case of a disastrous hurricane.

Additional categories of hurricane insurance

Homeowners insurance and flood insurance might not suit your needs best. Here are other types of insurance coverage you might need. 

Renters insurance

The good news is, renters aren’t subjected to the higher deductibles that homeowners might be when it comes to hurricanes. However, renters might still need to protect themselves from hurricane-related losses even though they do not own the property. There are three kinds of coverage you should consider if you are a renter worried about hurricane damages. 

• Contents insurance
• Loss of use insurance
• Flood insurance 

Luckily, a renters insurance policy is usually much cheaper than homeowners insurance! 

Auto insurance

Whether you own a car, a truck, or another kind of vehicle, hurricanes can sweep them away and result in a total loss. Hurricane damage can be covered if you opt into a comprehensive coverage policy for your vehicle.  

Commercial insurance 

There are an abundance of commercial insurance options out there that might grant your business protection against hurricane-related losses. 

• Commercial property insurance
• Business interruption insurance 
• Inland marine insurance
• Spoilage insurance
• Commercial flood insurance 

Businesses can sustain severe financial loss due to hurricane-related power outages, road closures, lost or damaged merchandise, and more. You can work with an insurance agent to find out which kinds of commercial insurance policies can protect your business the best. 

How to find the best hurricane insurance for you

Finding the right insurance coverage for hurricanes can be a pain in Florida. The good news is, you can quickly and easily get quotes for the coverage you need through Worth Insurance. Not only can you get great rates, but also quality coverage from top carriers in Florida! 

Whether you’re looking for home insurance, boat insurance, flood insurance, or another type of insurance, we’re here to help you in a timely and professional manner. We can also help you verify whether the policy you are getting includes adequate hurricane coverage for your peace of mind. 

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Frequently Asked Questions about Hurricane Insurance in Florida

Here are answers to some of the most common questions we get about hurricane insurance in Florida:

1. What does hurricane insurance cover in Florida?

Hurricane insurance in Florida isn't a separate policy but rather a combination of coverages usually included in your homeowners and flood insurance policies.

• Homeowners Insurance: Typically covers damage from wind, hail, and flying debris. It might also include "loss of use" coverage, which helps with living expenses if your home is uninhabitable due to hurricane damage.
• Flood Insurance: Crucial because standard homeowners insurance excludes flood damage. This covers damage caused by rising water, storm surge, and flooding associated with hurricanes.

2. How much is hurricane insurance in Florida?

The cost of hurricane insurance varies based on several factors, including:

• Location: Properties closer to the coast have higher premiums.
• Home Value: Insuring a more expensive home costs more.
• Coverage Limits: Higher coverage amounts increase premiums.
• Deductibles: Choosing a higher deductible lowers your premium.

On average, you can expect to pay around $2,000 per year for homeowners insurance (including hurricane coverage) and an additional $600 per year for flood insurance in Florida.

3. How do hurricane deductibles work in Florida?

Florida insurers often have separate deductibles specifically for hurricane damage. These are usually higher than your standard deductible and can be a fixed amount (e.g., $500) or a percentage of your home's insured value (e.g., 2%, 5%, or 10%).

4. Is hurricane insurance mandatory in Florida?

While not legally required, it's highly recommended. Most mortgage lenders require homeowners insurance, which typically includes windstorm coverage. However, you'll need to purchase flood insurance separately if your property is in a high-risk flood zone.

5. When is the best time to buy hurricane insurance in Florida?

Don't wait until a storm is brewing! Purchase hurricane insurance well in advance of hurricane season (June 1st to November 30th). There are often waiting periods for coverage to take effect (typically 30 days for flood insurance), and it may become difficult or impossible to get coverage as a hurricane approaches.

6. What other types of hurricane insurance might I need?

Besides homeowners and flood insurance, consider these:

• Renters Insurance: Protects your belongings and provides loss of use coverage if you rent.
• Auto Insurance: Comprehensive auto coverage protects your vehicle from hurricane damage.

Commercial Insurance: Various options are available for businesses, including property insurance, business interruption insurance, and flood insurance.