Individual states regulate insurance companies and even then, policies differ from insurance company to insurance company. When it comes to hurricane season, these are some of the policies and terms insurance agents suggest people look for to make sure they are prepared.

Types of Hurricane Damages

Hurricanes leave destruction and ruin in their wake. Families’ lives are upended, people lose loved ones and personal belongings. But when it comes time to rebuild, insurance companies will look at two specific types of damages caused by hurricanes: Windstorm and flood.

Flood insurance ends up being of the upmost importance for people come hurricane season, and it’s coverage that people need to make sure they have, said Jim Whittle, associate general counsel for the American Insurance Association.

Most windstorm and flood deductibles, or the portion of an insurance claim that people have to pay themselves, will be based on a percentage of the insured value of the home and not a flat rate like most deductibles.

This means that more times than not, it’s a higher out-of-pocket cost for people, said Lynne McChristian, consultant for Insurance Information Institute.

Another important aspect to know is that the value the percentage is taken from is based off the cost to rebuild a home, according to McChristian, and not the real estate value. The costs to rebuild a home will be higher than the real estate value.

By  Alexander Nicoll

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