People living in coastal states may have different needs from an insurance policy than those living elsewhere. The chances of suffering from hurricane, windstorm or flood damage may be much higher and it may be a good idea to check existing insurance coverage to ensure that adequate protection will be given. In some cases, additional insurance policies may be needed. What do you need to know about hurricane, windstorm and flood insurance? HB Springs Insurance Agency in Myrtle Beach, SC can help you understand these unique risks.
It isn't enough to assume that an insurance policy gives automatic coverage agains hurricane, windstorm and flood damage. Most regular homeowners insurance policies, for example, will exclude flood and storm surge damage completely and this may need to be purchased separately through the National Flood Insurance Program. Some policies may also exclude hurricane and wind damage.
Any insurance coverage that is given for hurricane and wind damage also needs to be checked to make sure that properties and contents are protected. Those with an older homeowners insurnace policy that have remodeled or added variations may need to make sure that they have enough coverage to meet any increased value. Keep in mind that it is not the value of the property that matters here but the rebuild cost.
Regular homeowners insurance policies come with deductibles. This is the money that you pay for a claim before the insurance company takes over. Regular deductibles are usually based on dollar amounts (i. e. $500) but hurricane and wind damage deductibles are now generally based on percentages.
According to the Insurance Information Institute this can range from 1-5% of the insured value of the property but may be increased in high risk areas. Those at risk of hurricane or windstorm damage may find it useful to save to meet this cost in the event that they have to claim. Some insurance companies will still allow dollar deductibles but taking this option may incur higher premium costs.