Is Buying Hurricane Insurance Worth the Money?

If you live in Florida, there’s no denying that you need some kind of financial protection against hurricane damage. You don’t want to be left with insufficient coverage, yet you don’t want to overextend your monthly expenses. So, how much should you be spending on insurance and what should you look for, when shopping for it?

The Cost of Hurricane Insurance

The exact amount you’ll pay for hurricane insurance will vary, depending on a number of factors. Primarily the size and value of your home and the location of your home will dictate how much you can expect to pay in premiums for a comprehensive hurricane insurance policy. Typically, it may only cost $300 per year to cover a modest home in an area that has been deemed at low risk for hurricane damage. At the other end of the spectrum, a more luxurious home, which sits in a very high-risk hurricane zone can cost up to $20,000 per year to insure.

The monthly premiums won’t be your only cost. It’s important to read the terms of your policy, because there’s often a deductible associated with coverage from insurance providers Orlando FL. In most cases, the deductible amounts to 1-5% of the estimated value of the home. The deductible would be applied to claims that are not hurricane related.

In some areas, the insurer may allow homeowners to choose their deductible from a range. This may help offset the costs of hurricane insurance, particularly if your home is a stronger structure. A home inspector or general contractor can help you determine the strength of your home in withstanding strong tropical storm winds. Generally, newer homes are built to withstand high winds more so than older structures.

What to Look for in Buying Hurricane Insurance

Even if you have a regular homeowners insurance policy, obtaining hurricane insurance is necessary in high risk areas. In some parts of Florida, for instance, it’s even required by law. Of course, you want to make sure you’re protected, so what factors do you want to consider?

First, remember that you want to make sure you have enough coverage to rebuild your home, if necessary. If you’re unsure about what that will cost, an insurance agent can help you determine a good estimate that will cover all of the expenses associated with rebuilding your home. You don’t want to be left short, when you need the coverage.
If you don’t already have coverage, don’t delay. Most insurance companies require a 30-day waiting period, once you sign up for hurricane insurance. Even if a storm has been forecast, insurers won’t amend that waiting period to start your coverage earlier. If it’s still within that 30-day window and a storm damages your home, you’ll be responsible for covering the costs of those repairs yourself.

Hurricane insurance can be costly but being left without it can cost even more in damages. You may be able to save money by searching for less expensive providers, when your policy comes up for renewal. However, don’t forget about the 30-day waiting period, so you won’t be left without coverage during a crucial time.