Your home is where your money is. It’s the most valuable investment you’ll make in your life. Therefore, to cover the cost of unprecedented damages, you have property insurance. Boca Raton, Florida’s most expensive home insurance won’t even cover all types of hurricane damages. Knowing what your property insurance Boca Raton, Florida, covers is essential before buying hurricane insurance if you dwell near the coast.
What is Hurricane Insurance?
Technically, hurricane insurance doesn’t exist. It’s a special part of catastrophic insurance covering flooding and high-wind damages. Hurricane insurance is mandatory in high-wind areas of the US, such as Texas and Florida.
Since hurricane insurance doesn’t exist, homeowners must attain property insurance. Boca Raton, Florida properties get insurance coverage for damage caused by the following two sources of hurricanes.
- Water
- Wind
For better coverage, you may need to buy these policies.
- Flood Insurance: No home insurance covers water damage. Whether it’s from internal or external factors, you’ll need separate flood insurance to insure your property.
- Windstorm Insurance: In some hurricane-prone states, homeowners insurance won’t’ cover windstorm damages. For that, you’ll need to purchase separate windstorm insurance.
Renters Insurance Covers Hurricane Damages?
- What is Renters Insurance? Renters insurance is a group coverage that protects renters living in a house or apartment against unexpected situations.
Like home insurance, your renter’s insurance won’t cover flood damages. It might not matter if you live on the 11th floor of a high-rise building. But if you are renting a ground-floor apartment, you’ll need flood insurance to protect your belongings. Remember, your landlord’s insurance covers the external structure of the apartment. You’ll need separate flood insurance to cover your belongings.
Conversely, most renter insurance covers wind damages. However, you won’t find this policy in high-risk areas. If you have renters insurance, it’ll be best to check if your belongings are covered against wind damage.
Hurricane, Name Storm, and Windstorm Deductibles
Some insurance companies impose windstorm, name storm, and hurricane deductibles on renters and homeowners insurance. This amount is subtracted from your insurance payout; hence, it’s essential to learn about them.
Windstorm Deductibles: Sometimes called hailstorm deductible. It applies to damages dealt from solid winds, whether a hurricane or a tornado.
Hurricane Deductibles: A hurricane deductible is triggered when the wind has enough speed to be categorized as a hurricane rather than a tropical storm.
Name Storm: A named storm deductible is triggered when your house is damaged by a storm named by the National Weather Services or National Hurricane Center. This type of deductible won’t be triggered under damages from unnamed storms. For example, Hurricane Katrina.
Home insurance deductibles are often flat $1000. However, it doesn’t apply to wind or named storms. In case of a windstorm, your deductibles will be based on a percentage amount of your home insurance. For instance, if your home insurance is worth $500,000 and the windstorm deductible is 5%, your payout will be $25,000 lessened from $500,000.
How Much Is a Hurricane Home Insurance?
The average cost of home insurance in the US is $1,500+ per year. While NFIP flood insurance coverage is $700 per year. This amount accumulates to $2200+ per year as insurance charges. However, the insurance coverage amount is based on risk factors. Your insurance premium will be much more significant if the risk is higher.
Some coastal residents might need to add wind insurance to their flood and home insurance to get complete protection from hurricane damages. This inclusion can be pricey, and as an example, the average annual premium from the Texas windstorm Insurance Association is $1700.
Should You Buy Hurricane Insurance?
As mentioned above, there is no such thing as hurricane insurance. Instead, it’s a combination of multiple insurances that protect your property from all sorts of damages that might arise from a hurricane. As a result, homeowners have to buy individual insurances, including flood insurance wind insurance, on top of their home insurance to insure their property against hurricane damages.
If you live in the coastal areas, you’ll definitely benefit from having hurricane protection. But if you live where there aren’t strong winds, you don’t need hurricane insurance because it’s pricey. Since you’ll need to purchase multiple insurances, filing a claim also becomes challenging.
All Risk Insurance Can Help
All Risk Insurance is the fastest-growing independent insurance agency in Florida. They provide a range of insurance products, including personal, commercial, auto, and marine insurance. For over a decade, All Risk Insurance is dedicated to helping homeowners get coverage and secure their property. If you are interested in insuring your home, reach out to All Risk Insurance by dialing (561) 395-5220 or visiting their website for more information.
