Does Homeowner's insurance cover Hurricanes in FL? (appointed, mortgage)

[titaniummd]

Does Homeowner's insurance cover Hurricanes in FL?

Does a Hurricane event require flood insurance?

[riveree]

Your coverage has to be in place prior to a storm being announced, but yes, you would have wind coverage on an average homeowner's policy and you would have a "hurricane deductible", I think the average is 2%.

Pull out your policy and check the "declarations" page to see what you are covered for. It's usually one of the first pages of your policy and the insurer is required by law to spell it out in simple terms on this one sheet .

But flood is not included on those policies........

Here's the thing with Flood Insurance. You have to buy it separately and it is one price (set by FEMA), so no matter which agent you go to, you are getting exactly the same policy at exactly the same price - no need to shop around, it's all set by FEMA. Flood Insurance usually starts at $300 and up per year and you pay it all in full up front - no escrowing.

I had it for a period of time and then I let it go. For me, it got too expensive (multiple properties). Each policy was $300+ and it adds up, especially when you have to pay it in full up front. I was not required to have flood insurance, it was my choice, and odds are that I'll never need to make a claim.

I started thinking about what my family went through in Louisiana after Katrina. They lost multiple properties, both residential and commercial. They were insured to the hilt - they had as much insurance as they were allowed to have - and they still had horror stories of collecting on their claims. You know, you pay your premiums faithfully year after year, decade after decade, you think you're with a well-know reputable company, but when the big disaster happens, when you need them the most, you find out how dirty they are .

Anyway, I realized that if I kept both "regular" insurance and FEMA's flood insurance on my house, if we ever had a disaster here like they did in LA, the two sides would pit against each other over who should pay me. So I dropped the Flood insurance. Honestly, I don't expect anyone to be there for me if we have a disaster like Katrina here, so that's where my head is at. But if the cost is no big deal for you and it helps you sleep at night, it might be worth it for you.

[titaniummd]

Riveree

Thanks for that perspective. I didn't opt for it but someone at work had mentioned that he had both. Hurricanes come with wind and rain so I figured it would be covered. Insurance companies will do whatever they can to get out of paying.

[nj2fla]

Originally Posted by titaniummd

Riveree

Thanks for that perspective. I didn't opt for it but someone at work had mentioned that he had both. Hurricanes come with wind and rain so I figured it would be covered. Insurance companies will do whatever they can to get out of paying.

yes they will, and if you do not get hurricane coverage any damage from a named storm will not be covered. Even though JAX rarely takes a direct hit from named storms JAX does get the remnants of storms and they can cause damage as well and if it is the remains of a named storm that causes damage to your property and you don't carry hurricane coverage you will not get paid

[riveree]

Originally Posted by titaniummd

Riveree

Thanks for that perspective. I didn't opt for it but someone at work had mentioned that he had both. Hurricanes come with wind and rain so I figured it would be covered. Insurance companies will do whatever they can to get out of paying.

Right, you'd be covered for water coming in from the roof (if it blew off, for example), but you'd need flood insurance for any water damage from rising water.

So what happens when the roof blows off AND there's rising water? That's where the insurers can really mess with you .

It's crazy because that's what happens in a hurricane - you have rain and wind and flooding - how in the world did these insurers get away with not covering flooding water??

[TOC]

What people have to understand is that when they are offered wind coverage, flood coverage, etc., you should take the coverage. If one of those things occur and you chose not to be covered, you cannot blame the insurance company because you chose not to buy the coverage. Of course if your agent told you that you had all of those coverages, thats a different story and you have all the right in the world to be mad.

Bottom line, almost everyone should get flood coverage. And if you live in certain areas that are prone to hurricanes, you should get wind coverage too. Just listen to what the agent is telling you. If your agent says "its not covered unless you also buy coverage B," then buy coverage B. Most unpaid claims arise because the client did not listen or did not care what the agent was telling them and then if something happens, they play dumb and say "the agent never told me." (which is usually BS).

Its actually very simple and unless your insurance agent is telling you NOT to buy certain types of coverage (which almost never happens because agents want their commission), you really don't have anyone to blame for not buying the coverage but yourself (unless of course it was never offered to you).

Don't get me wrong, insurance companies can be terrible but people usually are so subjective when they talk about them. Put yourself in an insurance carriers shoes for a second....if you knew there was going to be hurricane's in a certain area, would you provide that coverage for the same price you would charge someone in an area without risk of a hurricane? Of course you wouldn't. You would make those people in that area pay a little bit more. I mean a lot of things insurance companies do are questionable, but putting hurricane or flood exclusions in their policies is simple business.

And riveree, you are probably one of the smartest people I see posting on these boards, but dropping your flood insurance is a terrible thing to do and I would never recommend anyone doing that.

[mawipafl]

Riveree is correct about the cost of flood insurance - it's the same no matter from which agency or insurance company you buy it. But you can save a little if you can purchase it from the same company that writes your homeowner's policy. In our case, our homeowner's and flood insurances are through Tower Hill, so we get a small discount through our agency for having multiple policies.

The importance of flood insurance is that if rising waters, such as those in the midwest, that are not caused by a named storm do damage to your property. Riv is correct that a named storm/hurricane might create dueling insurance companies arguing over who will pay, but it's the un-named storms that wouldn't be covered by your homeowner's (wind yes, water no).

In all aspects of life I feel like I'm "forced" to buy insurance that I'll never ever need. And it does feel like a drain on the wallet. However, I feel that paying $348 per year for flood insurance does give me peace-of-mind should we get inches upon inches of rain and the swales can't handle it all and I find I have an unexpected indoor swimming pool.

[riveree]

Originally Posted by mawipafl

In all aspects of life I feel like I'm "forced" to buy insurance that I'll never ever need. And it does feel like a drain on the wallet. However, I feel that paying $348 per year for flood insurance does give me peace-of-mind should we get inches upon inches of rain and the swales can't handle it all and I find I have an unexpected indoor swimming pool.

And that's what I was saying, I can see how people can get peace of mind by having the flood insurance. I personally, was not getting that feeling from it .

I'm really disappointed in how the state of Florida has allowed the insurers to treat Floridians and I'm really soured to it all. Not all the insurance companies are bad, some seem to be very fair, and I'm happy with the current companies I'm using. TOC makes some great points and I can't say I disagree with any of it. For now though, I'm taking my chances. My risk of flood is low (I won't buy property unless it is Flood Zone X), so that figures into my decision as well. I may change my mind in the future, but for right now I've decided to only purchase the insurance I'm required to by my mortgage company.