What do hurricanes do to my home insurance?
The atlantic hurricane season, which occurs every year towards the end of the year, takes its toll on housing. Hurricanes are responsible for destroying more and more properties as the population increases.
Hurricane Ian, the largest hurricane of this season, destroyed an estimate of $67 billion in privately insured properties in multiple states, RMS estimates.
What damages can a hurricane create to my home?
According to the RMS report, their estimate comes from a couple seperate causes. Wind damages, including coverage leakage, storm surges and inland flooding.
All these seperate damages can be insured against, of course. For these cases, like storm surges and inland flooding, the government has a National Flood Insurance Program (NFIP), that “provides insurance to help reduce the socio-economic impact of floods.
In the case of hurricane Ian, the RMS estimates that this program, could be paying out another $10 billion in insurance costs. It is fair to say, that these insurances are used well and their coverage support a lot of homeowners to pay the repairs for their homes.
Does my insurance cost more in hurricane sensitive areas?
The estimate on your homeowner’s insurance premium is linked to many different factors. Of course, one of them is the possibility of damages versus the cost of repairs.
Therefore, it is possible that your premium is a bit higher if you live in a risky area, because chances are that you will have some damages to your property in these seasons. It is important to compare, which homeowners insurance fits best to your needs and how you evaluate the risks of damages.
If you feel like your premium is high, but you believe you live in an area where the hurricane season most likely will not affect your home, it is also possible to increase your deductible amount, so that the premium goes down, minimizing risks for you and your insurer.