Hurricane season tips for homeowners: Five insurance facts to know, when to buy
If you're a first-time homeowner, you may not know that flood insurance is not included in homeowners' insurance. But homeowners' insurance and flood insurance are two separate things entirely. One covers only flooding and the other covers almost any damage a home could sustain during a storm.
Last year, the National Flood Insurance Program validated more than 54,000 claims and shelled out more than $1.6 billion in policy coverage. Hurricane Ian alone was responsible for 46,000 insurance claims and $1.5 billion in policy coverage.
Yet, according to an April survey of Florida homeowners from AAA, 67% of the Floridians who responded said they do not have flood insurance.
Here are five important facts to know if you're shopping for flood or homeowners' insurance.
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1. Flood insurance is not included in homeowners' insurance, so what is?
Flood insurance only covers damages sustained from flooding, from rising water. Whereas homeowners' insurance typically covers all other types of hurricane damage, from fallen trees to lightning, wind or hail; as well as damage from fire, smoke, theft or vandalism.
Homeowners' insurance can sometimes cover heating and cooling systems, kitchen appliances, furniture, clothing and swimming pools, depending on your policy. But any water damage from flooding can only be covered by a flood insurance policy.
You can start a search for a homeowners' insurance policy that works for you with the Florida Office of Insurance Regulation's Homeowners Rate Comparison Tool. This search tool allows you to search for sample average insurance rates by county.
For flood insurance resources, FEMA's National Flood Insurance Program (NFIP) has a list of companies that offer flood insurance in Florida.
2. Most home and flood insurers don't sell policies during hurricane season
You can sometimes buy homeowners' insurance during hurricane season, but not always. It's harder to buy into a homeowners' or flood insurance policy during hurricane season, when insurance companies know there's a higher risk for flooding and storm damage for Florida homeowners.
When insurance companies issue a policy, they're hoping you won't have to file a claim. If there's a high risk of you making a claim shortly after applying for your insurance policy, insurance companies are less likely to approve you.
This is why most insurance companies don't sell homeowners' insurance 24 to 48 hours before a storm is anticipated to hit the state.
Rules around when you can and can't buy homeowners' insurance vary depending on which insurance provider you buy from, but is usually difficult to acquire during hurricane season no matter who you insure with.
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3. Most flood and home insurance policies can take up to a month to take effect
Both homeowners' and flood insurance typically take up to 30 days to take effect. This is the other reason why waiting until hurricane season to buy into flood or homeowners' insurance could put a Florida homeowner in a tight spot.
Damage from flooding is expensive to repair, Just one inch of water in your home could cost up to $25,000 or more to fix.
Homeowners who don't have flood insurance but sustain flood damage have the option to apply for federal disaster assistance through a loan from the U.S. Small Business Administration. But unlike payouts from insurance claims, the federal disaster assistance loans have to be paid back.
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4. Most renters, landlord and homeowners' insurance policies cover all hurricane damage that isn't flooding
Insuring your belongings against storm damage isn't only for homeowners. Landlord, renters and homeowners' insurance all have protections for hurricane damage.
Renter: For around $15 to $20 a month, renters' personal property can be protected in the event of hurricane damage.
Landlord: If a landlord's leasing a property that is damaged during a storm, they could get paid for more than just damages. If the tenants are forced to vacate due to damage, sometimes landlords can also get reimbursed for lost rent while repairs are being made.
Homeowner: Homeowners' insurance is the most extensive of these policies and typically covers storm damage like lightning, wind, hail and fallen trees. It also covers damage from fire, smoke, vandalism and theft.
5. Renters can have flood insurance, too
Similar to home insurance, flood insurance is also available to renters. Although your landlord may have bought flood insurance to protect the property, you'll still need to protect your belongings if you rent.
According to the NFIP, low-cost flood insurance for renters can start at around $100 each year and may be affected by the following factors:• Building age• Building occupancy• Number of floors• The location of your contents• Flood risk (i.e. flood zone)• Claims history for thebuilding• The deductible you choose and the amount of coverage
More resources are available in the NFIP's brochure on flood insurance for renters.
Lianna Norman covers trending news in Palm Beach County for The Palm Beach Post. You can reach her at lnorman@pbpost.com. You can follow her reporting on social media @LiannaNorman on Twitter.
This article originally appeared on Palm Beach Post: When to buy flood and homeowners' insurance in Florida
