1. Why Hurricane Insurance Is No Longer Optional
Over the past decade, the Carolinas and Virginia have experienced more than 20 named storms making landfall or causing significant damage. Hurricanes like Florence, Matthew, and Ian proved a hard truth: standard homeowners insurance does not fully protect you from hurricane losses.
Homeowners policies cover wind damage—but not flood, storm surge, rising water, or rain that enters due to storm-created openings unless properly endorsed. In some coastal counties, private insurers won’t cover wind at all, pushing homeowners into state-backed wind pools like:
- North Carolina Insurance Underwriting Association (NCIUA, “Beach Plan”)
- South Carolina Wind and Hail Underwriting Association (SCWHUA, “Wind Pool”)
- Virginia’s FAIR Plan for wind coverage in high-risk zones
If your home is east of I-95 or near the Intracoastal Waterway, you are almost guaranteed to need separate flood insurance and possibly a separate wind policy.
2. What Hurricane Insurance Actually Covers (and What It Doesn’t)
2.1 Wind Damage
Covered under most homeowners insurance—unless you live in a coastal county where windstorm coverage is specifically excluded. Covered damage includes:
- Shingle loss and roof structure damage
- Broken windows, siding, exterior damage
- Rain entering only after wind creates an opening in your roof or walls
2.2 Flood Damage
Not covered by standard homeowners insurance or hurricane insurance. You need a separate flood insurance policy—either through the National Flood Insurance Program (NFIP) or a private carrier.
Flood insurance covers:
- Storm surge and rising water
- Flooding from rivers, sounds, bays, or heavy rainfall accumulation
- Damage to built-in appliances, flooring, electrical systems, and foundation
2.3 Storm Surge
The #1 cause of hurricane-related home destruction—and strictly classified as flooding, not wind. Only a flood policy pays for it.
2.4 Rain Damage
If rain enters through a storm-created opening (e.g., shingles ripped off), wind coverage applies. If rain enters because a window was left open or the home wasn’t properly maintained, no coverage applies.
3. The Deductible Trap: How Much You’ll Actually Pay
Hurricane deductibles work differently—they’re a percentage of your home’s insured value, not a flat dollar amount.
| Home Value | 2% Hurricane Deductible | 5% Hurricane Deductible |
|---|---|---|
| $300,000 | $6,000 | $15,000 |
| $500,000 | $10,000 | $25,000 |
| $750,000 | $15,000 | $37,500 |
Types of Storm Deductibles:
- Hurricane Deductible – Triggered only when the National Hurricane Center declares a hurricane.
- Named Storm Deductible – Triggered by any tropical storm or hurricane with an official name.
- Windstorm Deductible – Applies to any wind-related event, not just named storms.
Important: A policy with “wind deductible” activated by any wind event is riskier and often costlier over time.
4. Policy Loopholes and Pitfalls That Cost Homeowners Thousands
4.1 Anti-Concurrent Causation Clause
If both wind and flood cause damage at the same time—many insurers deny all coverage. It doesn’t matter that wind damage started first.
4.2 Roof Age Penalties
If your roof is more than 10–15 years old, your insurer may:
- Pay only actual cash value, not replacement cost
- Refuse to cover roof damage entirely
4.3 Mold Coverage Caps
Most policies cap mold damage at $5,000–$10,000, no matter how severe.
4.4 Detached Structures and Screened Porches
Detached garages, docks, and screened rooms may not be covered unless you add “Other Structures Coverage” or schedule them separately.
5. How to Shop Smart: Questions Insurance Agents Don’t Expect You to Ask
When comparing quotes, don’t just ask “What’s the premium?” Ask:
- Does this policy include windstorm coverage, or is that excluded in my county?
- Is the hurricane deductible based on the insured value or dwelling coverage amount?
- Is it a hurricane, named storm, or windstorm deductible? What specifically triggers it?
- Do you use actual cash value or replacement cost for roof repairs?
- Does the policy include anti-concurrent causation clauses?
- How much is covered for additional living expenses if I cannot live in my home?
- Is this policy from an admitted carrier or a surplus lines insurer (non-admitted)?
Admitted vs. Surplus Carriers
| Admitted Insurance Company | Surplus/Non-Admitted Carrier |
|---|---|
| Regulated by the state | Looser regulations |
| Covered by State Guaranty Fund | No state protection if insolvent |
| Generally more stable | Often used for high-risk coastal homes |
6. Lowering Your Premium Without Weakening Your Coverage
6.1 Wind Mitigation Credits
You can save 10%–40% by strengthening your home. Eligible upgrades include:
- Asphalt shingles with hurricane-rated nails
- Metal or fortified roofing
- Hurricane shutters or impact-rated windows
- Reinforced garage doors
- Roof-to-wall hurricane straps or clips
6.2 State Grant Programs
- North Carolina – Strengthen Your Roof program through NCIUA
- South Carolina Safe Home Program – Grants up to $5,000 for retrofits
- Virginia / Mid-Atlantic – Tax deductions or credits for storm-hardening in some counties
7. Buying a Home in a Hurricane Zone? Here’s What to Check First
Before making an offer, ask for:
- Elevation Certificate – Determines flood insurance cost
- Roof inspection report – Age and type of roof affect premiums
- CLUE Report (Claims History) – Reveals prior insurance claims on the home
- Flood Zone Status – Zone V (highest risk), A, AE, or X
- Availability of wind coverage – Some properties require a state wind pool policy
Ask the seller:
- Has this home ever flooded?
- Do you currently carry wind and flood insurance?
- What is your annual premium for each policy?
8. Preparing for a Claim — Before the Storm Hits
Do this now—not after a hurricane warning:
| Action | Why It Matters |
|---|---|
| Home Inventory (photos/videos of every room) | Required to prove losses |
| Save receipts for major upgrades | Helps with replacement cost claims |
| Store insurance policies digitally and physically | Fast access when power/internet is out |
| Take “before” photos of roof, foundation, exterior | Prevents claim denial for alleged pre-existing damage |
After the Storm
- Document all damage before moving debris
- File the claim immediately — don’t wait for power to return
- Request an advance payment if you can’t live at home
- Never throw away damaged materials until the adjuster documents them
9. Final Takeaways — What Smart Homeowners Do Now
✔ Homeowners insurance is not hurricane insurance. You likely need three separate policies: homeowners, windstorm, and flood.
✔ The biggest financial trap is the hurricane deductible — know your percentage and calculate the dollar amount today.
✔ Ask for a full policy specimen, not just a quote summary.
✔ Strengthen your home now — you may get premium discounts and avoid claim denials.
✔ Homebuyers should verify flood zone, wind zone, roof condition, and ask for prior claim history before making an offer.
✔ The best time to review your coverage is before the next named storm, not after.
Hurricane Insurance Checklist
Brought to you by: Scott Gentry · Hamilton Realty Group
1) Policies and Coverage
2) Mitigation and Discounts
3) If You’re Buying a Home
4) Claim Preparation
5) After a Storm
