Summary: In Texas, hurricane insurance primarily pertains to homeowners insurance featuring a hurricane deductible, especially in high-risk coastal areas. Additionally, it encompasses various policies like home/renters, windstorm, and flood insurance. Windstorm deductibles, based on a percentage of the home’s value, differ from standard homeowners insurance deductibles. Renters, drivers, and boat owners each have distinct needs for storm coverage in Texas. Regardless of your situation, securing coverage before hurricane season begins is crucial to avoid any potential lapses. Estimated Read Time: 6 mins
Hurricane insurance isn’t a standalone policy but often refers to a hurricane deductible within homeowners insurance found in states prone to tropical storm activity, including Texas.
It’s an additional amount a homeowner pays before coverage applies to hurricane-related damage.
Alternatively, hurricane insurance can entail separate policies covering flooding or extreme winds, typical in high-risk states like the Lone Star State.
In reality, coverage for hurricane-induced damage comes from flood or windstorm insurance, as homeowners policies usually have the hurricane deductible.
How Much Is Hurricane Insurance in Texas?
Hurricane insurance deductibles, calculated as a percentage of the home’s value, differ from standard homeowners insurance deductibles.
Ranging from 1% to 5%, these deductibles emerged after Hurricane Andrew in 1992 and expanded post-Hurricane Katrina in 2005.
In Texas, this deductible is for damage from wind and hail damage but includes any windstorm, not just named storms and hurricanes.
There are 14 counties Texas Windstorm Insurance Association (TWIA) provides windstorm coverage for residents as many insurance carriers do not offer it.
These are the following counties with options from TWIA:
● Aransas
● Brazoria
● Calhoun
● Cameron
● Chambers
● Galveston
● Harris County (some areas east of Highway 146)
● Jefferson
● Kenedy
● Kleberg
● Matagorda
● Nueces
● Refugio
● San Patricio
● Willacy
Additionally, the Texas Fair Access to Insurance Requirements Plan Association (FAIR Plan) offers residential property insurance to homeowners who cannot obtain coverage from licensed insurers.
However, it doesn’t provide wind and hail coverage in areas eligible for TWIA.
If you are seeking Texas insurance to protect you from storms, click the “get a quote” button at the top right of the page and we can help you find the right coverage for your needs.
Windstorm deductibles, sometimes less than hurricane deductibles, cover any wind-related damage. Coastal homeowners may qualify for reduced premiums by fortifying their homes.
Flood insurance, unlike hurricane insurance, protects against various flooding sources, although hurricane insurance often includes both flood and windstorm coverage.
For these reasons, determining the cost of hurricane insurance in Texas means considering many different factors, including your carrier and where you live.
One key consideration unique to this coverage is that it’s actually a mix of different insurance policies.
The cost of your hurricane insurance will depend on the protections you enroll in.
For homeowners, this may mean home and flood while those renting a home will need renters and flood policies to stay protected.
Below, we’re breaking down the different forms of insurance and how they can help you protect your home and property from tropical storms and hurricane events.
By shopping rates for the appropriate coverages, you can better understand your costs, and you’ll want to do so before it’s too late.
Hurricane insurance is available through the many different policies offered by carriers, however, moratoriums are put into place once storms enter the Gulf of Mexico. Flood insurance also takes 30 days to begin covering your property.
This means if you want homeowners insurance with hurricane coverage or protection against flooding but a storm is on the way, you won’t be able to purchase protection.
Overall, it’s important to get coverage before the beginning of hurricane season to avoid lapses in coverage.
It’s also worth noting that although Atlantic hurricane season officially begins on June 1, 2024, the National Hurricane Center (NHC) begins issuing Tropical Weather Outlooks on May 15, 2024.
With changing weather patterns and intensifying storms, the sooner you’re covered, the better you can be sure that you’re protected from what may come.
Does Homeowners Insurance Cover Hurricane Damage?
Standard homeowners insurance usually covers wind damage, including that from hurricanes. Yet, in high-risk areas like the Gulf Coast, you might need a separate deductible for hurricane-related losses.
Your named storm or hurricane deductible activates once a storm reaches a specified strength, typically transitioning from a tropical depression to a named hurricane.
Standard home insurance policies do not cover flood damage, meaning you’ll need a separate flood insurance policy to safeguard against hurricane-related flooding.
Some insurers offer flood endorsements within existing homeowners policies, though this is rare.
Renters Insurance and Hurricane Damage
Your renters insurance typically covers repairing or replacing belongings damaged by a hurricane, up to policy limits and after deductibles.
If your rental becomes uninhabitable due to wind, lightning, hail, or fire damage, loss of use coverage may help with living expenses like hotel stays, and meals, up to your policy limits.
The key factor of renters insurance covering hurricane damage from a Texas storm is the cause of damage.
While renters insurance hurricane coverage may cover perils such as wind, hail, lightning, and fire, most policies won’t cover water damage directly caused by flooding.
Again, you’ll need a separate flood insurance policy to safeguard from this peril.
Boat Insurance and Hurricane Damage
Boat insurance typically covers storm damages like windstorms or hail under physical damage coverage.
Liability-only policies don’t cover damages to your boat but may cover property damage caused by your boat.
Understanding your boat insurance coverage, especially for liability and physical damage, is crucial.
Your insurer should cover wind and hail damage during a hurricane, but it’s wise to confirm with them.
Comprehensive and collision coverage can offer additional protection during hurricanes.
Boat owners should monitor weather reports and watch for warning signs during hurricane season to mitigate potential damage.
Auto Insurance and Hurricane Damage
Texas hurricane insurance typically focuses on homes and personal property but your vehicle is in need of protection against these destructive forces as well.
Your car insurance policy typically covers hurricane damage if you have comprehensive coverage, which handles most storm-related damages like falling debris, strong winds, and water damage.
Collision coverage may apply if you’re involved in an accident during hurricane conditions. Both types of insurance have deductibles, requiring you to pay a portion of the repair costs.
However, not all auto policies include coverage for hurricane-related vehicle damage, and physical damage coverage is often optional unless mandated by your lender.
Just like with home insurance, renters insurance, or a flood insurance policy, if you attempt to secure coverage just before a hurricane hits, you may encounter restrictions due to a hurricane moratorium imposed by insurance companies.
Hurricane vs Flood Insurance
Hurricane insurance is an all-encompassing term that includes coverages for wind, storm surges, and heavy rainfall. It can include flooding but only if there is a specific flood policy in place.
Flood insurance specifically covers flood-related damages caused by heavy rainfall, storm surges, or overflowing bodies of water.
It’s crucial for properties in flood-prone areas, as standard policies typically exclude flood damage.
Remember, hurricane insurance is more of a moniker to help understand which policies you’ll need to cover your property from such storms but is not an official policy itself.
Are Hurricane Deductibles Waived for Category 5 Hurricanes?
The rumor of a Category 5 hurricane waiving deductibles may have originated from discussions about how they are handled in cases of total loss or when damages exceed policy limits. Misinformation is common after hurricanes, after all.
However, contrary to the rumor, hurricane deductibles are not waived for Category 5 hurricanes.
With that being said, if the total loss or damages from the hurricane surpass your policy limits, your insurance company may absorb the deductible, such as in the case of a total loss claim.
Do I Need Hurricane Insurance in Texas?
Though it isn’t required by Texas law, some lenders require flood and/or windstorm protection as a condition of your loan depending on where your home is located.
If you live in an area susceptible to storms, now is the time to act. This is particularly important for Texans living along the Gulf Coast.
To learn more about hurricane insurance, contact our team to discover affordable options in your area and avoid handling expensive repairs in the aftermath of a storm alone.
Sources:
1. What Is Hurricane Insurance? Definition, Coverage, and Costs, Investopedia. Accessed April 2024. https://www.investopedia.com/terms/h/hurricane-deductible.asp
2. Background on: Hurricane and windstorm deductibles, III. Accessed April 2024.
https://www.iii.org/article/background-on-hurricane-and-windstorm-deductibles