It’s hurricane season, and before a storm is on the radar, it’s a good time to review your homeowner’s insurance policy and understand what it covers.
Many homeowners impacted by Helene and Milton had damage claims denied. According to the Florida Office of Insurance Regulation, a significant number were denied because the insurance policy deductible exceeded the damage claim or because most homeowner’s insurance policies don’t cover flood damage.
Hurricane Deductibles Can Be High
Your homeowner’s insurance deductible is the amount that you pay out of pocket before insurance will pay for a covered loss. In Florida, most policies have a separate higher deductible that applies specifically to hurricane-related damage. These deductibles are 2%, 5%, or 10% of your home’s insured value.
Example: If your home is insured for $300,000 and you have a 5% deductible, you’ll need to pay $15,000 out of pocket before insurance covers hurricane damage.
This means smaller claims may fall entirely within your deductible, resulting in no payout.
Flood Damage Isn’t Covered
Standard homeowner’s insurance policies do not cover flood damage. A separate policy needs to be purchased for that protection. If you live in a flood zone and have a mortgage, flood insurance may be required by your lender. Even outside of high-risk zones, flooding can still occur—and without coverage, the financial impact can be significant.
Review Your Policy and Situation
Now is a great time to review your insurance coverage and make sure you understand your:
- Hurricane deductible amount
- Financial capability to cover out of pocket costs
- Flood risk
Higher deductibles can lower the cost of insurance, but they also mean you need enough savings to cover potential out-of-pocket costs. A flood insurance policy is not always required and does add cost, but going without means additional risk.
Take a few minutes now to review your coverage and avoid costly surprises later.
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