Does Insurance Cover Hurricane Damage?

Instead of a single policy type, hurricane insurance is a combination of home, auto, business, and flood coverage that protects you when a storm hits. Understanding what each component entails ensures that you, your family, and your business (if you own one) are prepared before hurricane season arrives.

The Atlantic hurricane season spans June to November, and September is typically the most active month for storms. To prepare, it’s important to know how your insurance policies may or may not cover hurricane-related damage.

In this guide, our experts at C&S Insurance break down what’s covered when it comes to storm conditions, including wind and flooding. Read on to learn how auto insurance, home insurance, and business insurance handle the most common resulting issues.

Does Auto Insurance Cover Hurricane Damage?

Yes, auto insurance can cover the damage your car sustains in a hurricane. But this is only the case if you have comprehensive coverage.

An optional part of auto policies, comprehensive coverage protects your own vehicle from flooding, fallen trees, flying debris, and theft — all risks during and after a storm. In short, it covers the cost of non-collision-related damage.

For example, comprehensive coverage can shield your car from hurricane-related damage such as:

• Storm surge flooding
• Branches through the windshield
• Someone breaking in during a storm

However, if your car is damaged due to negligence, such as accidentally leaving your sunroof or windows open, your claim will likely be denied.

If you get into an accident with another vehicle or hit a guardrail during a storm, you’ll need collision coverage. Most drivers who opt for comprehensive coverage also have collision coverage, but you should confirm your policy details with your agent to be certain.

Does Home Insurance Cover Hurricane Damage?

Yes, home insurance can cover damage caused by hurricanes and other windstorms. However, there are some key exclusions.

Dwelling Coverage

Damage to your home’s structure is likely covered under dwelling coverage. Your dwelling coverage may have a separate deductible specific to windstorms. These are often significantly higher than deductibles for other perils.

Your policy might also have a “named storm” deductible, also called a “hurricane deductible.” Sometimes, these deductibles are calculated as a percentage (usually 1–5%) instead of a flat amount. Depending on where you live, a storm becomes a “named storm” when it’s classed as a hurricane, or as a specific category of hurricane (such as category 4 or 5, for example).

While New England experiences hurricanes less frequently than the Gulf Coast or Southeast, the risk still remains. The Great New England Hurricane of 1938, Hurricane Bob in 1991, and the 2012 impacts of Hurricane Sandy all brought serious damage to the region. Massachusetts, for example, is one of 19 states where insurers can apply a hurricane deductible, which is  particularly important for those in coastal towns on both the south and north shore as well as Cape Cod and the Islands.

Personal Property Coverage

After a hurricane, the personal property portion of your homeowner’s insurance may cover damage to your personal belongings.

Loss of Use Coverage

If you need to stay in a hotel or other accommodation after your home is damaged in a hurricane, loss of use coverage can pay for living expenses that exceed what you’d normally spend.

Flood Insurance

Standard homeowner’s insurance policies do not typically cover damage from flooding, even when it’s caused by a hurricane.

If you have concerns about flooding in your neighborhood, you should purchase a flood insurance policy through the National Flood Insurance Program (NFIP). Sometimes, you can add a flood endorsement to your homeowner’s policy.

Does Business Insurance Cover Hurricane Damage?

Yes, your commercial insurance policies can help cover the damage caused by hurricanes and other storms. However, there are some exclusions. Review your policy details to understand exactly what’s covered before a storm hits.

Commercial Property Insurance

Commercial property insurance can cover damage that your building’s structure, equipment, or inventory sustains due to wind or rain. It also can cover losses that result from flying debris.

It’s important to note that commercial property insurance typically covers losses caused by rain entering a building due to structural damage. This doesn’t include equipment accidentally or purposefully left out in the rain.

Your commercial property policy may have exclusions or deductibles for windstorms or named storms. There can also be some limitations on items stored outdoors or in basements.

Mold or mildew can grow if your building floods, but these issues aren’t typically covered by commercial property insurance if the proper preventative measures were never taken.

In addition, issues caused by power outages may not be covered by commercial property insurance, unless your policy specifically names them. This includes spoiled inventory due to refrigeration loss and supply chain disruptions. However, you can add an optional utility interruption endorsement to some policies.

Business Interruption Coverage

If your business needs to close because of hurricane damage, business interruption coverage can help. It covers lost income, ongoing expenses such as rent and payroll, and extra expenses your business pays to temporarily relocate operations.

Some business interruption policies exclude losses caused by utility outages or government-mandated evacuations. But business downtime caused by extensive wind or rain damage may be covered.

Flood Insurance

Similarly to home insurance, most commercial property policies don’t cover flood damage from storm surge or heavy rainfall. You can purchase flood insurance separately for your business through the NFIP. If you have a mortgage on your location, your lender may require you to carry flood insurance if your property is situated in a high-risk flood zone.

Windstorm Insurance

Windstorm insurance is a separate policy you can purchase for your business. It covers roof and structural damage, broken windows or signage, or structural collapse caused specifically by windstorms, including hurricanes.

In many coastal areas, windstorm insurance comes with a high deductible and some specific exclusions. Review windstorm policies with an agent to get an idea of how your company can benefit.

How to File a Claim After a Hurricane

To file a claim and receive a payout for your home, car, or business after a hurricane, take the following steps:

• Document damage: Take photos and videos to show your insurer what was affected.
• Contact your insurer promptly: Claims can be denied if they are delayed beyond a certain deadline. See your policy for details and deadlines.
• Hold off on repairs: Unless it’s necessary to prevent further damage, wait to make repairs until after your claim has been approved.
• Get repair estimates: Your insurer will want to see documents outlining how much each repair will cost.
• Follow up and stay patient: Insurance companies receive an influx of claims after major storms.

Personal & Commercial Insurance in New England

Don’t let hurricane season creep up on you. Be prepared with the best home, auto, and business insurance you can get. Contact C&S Insurance for a quote today.