Hurricane Insurance

Example

“Living in Miami, Roberto was required by his mortgage lender to carry hurricane insurance in addition to his standard homeowner's policy.”

Memory Tip

Hurricane insurance is 'Howling wind coverage' - it specifically protects against the howling winds and related damage from named storms.

Why It Matters

In hurricane-prone areas, standard homeowner's insurance may exclude or severely limit hurricane damage coverage, making separate hurricane insurance essential for financial protection. Without it, property owners could face complete financial ruin from a single major storm event.

Common Misconception

Many people assume their regular homeowner's insurance automatically covers hurricane damage, not realizing that hurricane coverage may be excluded or require a separate policy. Additionally, some confuse hurricane insurance with flood insurance, not understanding that hurricane insurance typically covers wind damage but flood damage requires separate federal flood insurance.

In Practice

Maria's beachfront condo worth $500,000 sustains $100,000 in hurricane damage from wind-driven rain and flying debris. Her hurricane insurance has a 5% deductible ($25,000) but covers the remaining $75,000 in damages. However, the $20,000 in flood damage to her first floor isn't covered by hurricane insurance and would require separate flood insurance coverage.

Etymology

Developed as a distinct insurance product following devastating hurricanes in the late 20th century, when traditional homeowner's policies began excluding or limiting coverage for named storm events in high-risk coastal regions.

Common Misspellings

Related Terms

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See Also