Who Needs Florida Storm Insurance?
June 14, 2023
Living in Florida comes with the risk of hurricanes. So, to protect your home, belongings, and yourself, you may need a combination of storm coverage.
Hurricane damage is typically covered under a windstorm or named storm deductible to your homeowners or renters insurance. But, if you don't have the right storm coverage, you're taking a big financial gamble.
Since Florida is smack dab in the middle of hurricane alley, you should consider what combination of hurricane, flood and wind insurance will best protect your assets.
The deductible for hurricane insurance is calculated as a percentage of your home's insured value (also known as the dwelling coverage limit). On average, the hurricane deductible in Florida ranges between 1% and 5%. But if you live in a high-risk area, the deductible can be higher due to specified risk factors.
Do I need wind insurance in Florida?
In some hurricane-prone states, you need a separate windstorm insurance policy. Although the Sunshine State does not mandate storm insurance, Florida Statutes do require insurers to provide coverage for windstorms as part of homeowners, condo, renters, and landlord insurance policies.
The most significant difference between all storm insurance coverages is the dollar amount of the deductible required when you file a claim. Hurricane insurance has a named storm deductible, whereas windstorm insurance has a wind or hail deductible but does pay for damages like straight-line winds or hail storms.
Do I need flood insurance in Florida?
With such little distance to the water, flooding is a real concern in Florida. That’s why the legislature passed a bill in Dec. 2022 that requires all homeowners insured by Citizens Insurance to also have flood insurance by 2027. This requirement will roll out gradually, and people who are in high-risk flood areas will be impacted first.
Anywhere It Rains, It Can Flood! - Florida Dept of Financial Services
The good news, everyone in Florida is eligible for flood coverage as everyone lives in a flood zone. Qualifying for the National Flood Insurance Program (NFIP) coverage will depend on your flood zone and community where the property is located. While you are not required to purchase flood insurance living in a low to moderate risk zone, because even a few inches of water can cause very expensive damage.
Who Pays for Hurricane Damage in Florida?
In general, your homeowner's or renter's insurance policy will pay for hurricane damage in Florida. The Federal Housing Administration has a program that's designed to help disaster survivors rebuild or buy replacement homes. Under the Section 203(h) program, the FHA insures mortgages for people whose homes were badly damaged in a disaster where borrowers don’t have a down payment.
Although water damage like leaks from plumbing issues are typically covered by your homeowners or renters policy, there is a difference between water and flood damage. Moreover, according to the Federal Emergency Management Agency (FEMA), over 20% of flood insurance claims come from outside of high-risk flood areas and an inch of water can easily result in thousands of dollars in damages.
If you live in an area prone to hurricanes, it's important to have the right combination of insurance policies to also cover your home from windstorm or flood damage. Remember, insurance may not be available right before a hurricane. Due to the potential damages from an incoming hurricane, most insurance companies will not write new storm policies within 48 hours of landfall.
Severe Storms Can Cause Serious Damages
Climate change has led to more severe storms in recent years, making it even more crucial to protect all of your assets with a combination of hurricane, flood and wind insurance. If you need assistance regarding storm coverage for Florida homeowners or residents, call 1-833-450-9490. It's important to make sure that you have enough coverage to completely rebuild and replace everything.
Hurricanes are among the most destructive types of natural disasters. At Nsurance Nation, we know and understand the risks that hurricane, windstorm and flood damages pose and can help you find the most affordable options to protect your assets. But, don’t wait until it is too late, make sure you have the right coverage before the next big storm approaches.
