Did you know that each new hurricane causes roughly $54 billion in damages to the public and private sectors? As such, you can see why insurance is vital for anyone living in a coastal area like Florida.
These areas are much more vulnerable to winds and flooding than inland areas. But exactly, how much is hurricane insurance? And is it worth it? In this article, we’ll be going over the importance of natural disaster insurance. Let’s get started.
What Is Hurricane Insurance?
The concept of ‘hurricane insurance’ doesn’t exist. Insurance providers won’t provide a policy that deals specifically with the broad damage caused by hurricanes. What it refers to is additional insurance policies added to your standard property insurance.
Standard property insurance policies typically cover the damage caused by wind conditions. However, most of the time it does not include water damages for things like floods.
So if your home experiences flooding and all you have is a standard policy, then you will need to pay for it yourself. So, ‘hurricane insurance’ typically refers to a combination of standard property insurance with an additional flood insurance policy.
Why Are These Additional Policies Important?
You may be thinking why do I need additional insurance policies? What’s wrong with the standard one? The sad reality is that Florida is much more susceptible to hurricane damages, particularly ones that involve flooding.
In many ways, this is due to the infrastructure which it’s built open. Certain types of properties in Florida are even more vulnerable to flooding than others. For example, concrete grinding — which is commonly used to protect old concrete — is still heavily susceptible to water damage.
As such, any house that uses it for pools or foundations is more at risk in the event of a storm. However, the increased risk of hurricane damage is also due to the state’s location.
The warm water in the Atlantic ocean causes particularly strong winds to hit the southernmost coast of Florida. As such, not adding these extra insurance policies can potentially setback people’s finances for decades to come.
How Much Is Hurricane Insurance?
In Florida, the average home insurance policy costs around $1,117 a year. Keep in mind that this typically just covers damages from hurricane winds.
If you also want flooding insurance, then you will likely need to take out a policy that costs $600 more. So, full coverage hurricane insurance will cost you roughly $1,700 per year.
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We hope this article helped you answer the question, How much is hurricane insurance? There’s no doubt that the added expenses of home and flooding insurance will put a strain on some households.
But ultimately, the decision will save you thousands of dollars in likely even if your home is damaged by a storm. Want more home improvement and life advice?
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