How to Shop Around for Hurricane Coverage for Your Homeowners Insurance Policy

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New reports indicate Hurricane Irene might prove to be one of the 10 most expensive disasters in U.S. history.  Hurricane Irene hit the Northeast in August 2011 and was the worst hurricane of the 2011 hurricane season, causing 56 deaths and upwards of $10 billion in damage, according to the New York Times.   With this hurricane, citizens of states such as Connecticut, Rhode Island, Vermont, New Hampshire, New Jersey or New York have a renewed interest in making sure some kind of hurricane coverage is a part of their homeowners insurance.  As a new first-time buyer of this coverage, here is how to get started:

Do You Have Current Coverage?

First, call your homeowners insurance agent to see if your current policy has hurricane coverage and how much it would cost to add the coverage.  Peace of mind might be as close as one phone call to get a quote and add the coverage.  Since this coverage is usually expensive, you might also want to get a few other quotes to compare and ask your agent if they can match another company’s lower quote.

If You Need to Find Coverage

In certain areas, it might be hard to find a homeowners insurance company that offers hurricane coverage.  To find names of companies, look to your state insurance board.  From this website or by calling them, you should be able to find out which companies offer hurricane coverage.  If your state insurance board lists a company, you then know they are fully licensed in your state to sell insurance.  If a company is not listed with your state, do not buy from them.  If you are not able to find information through your state’s board of insurance, the National Association of Insurance Commissioners is another resource with a helpful website which includes maps to show you insurance companies in your area. 

Is Your Current Coverage Enough?

If hurricane coverage is too expensive or is not available in your area, your current policy might have wind or flood damage coverage.   In some areas, coverage for flooding or wind damage has been sufficient to settle claims in your area and might be one reason hurricane coverage is not offered.  Flood insurance is particularly important.  With Hurricane Irene, much of the damage was caused by flooding and, according to the New York Times, because consumers did not have this type of coverage as a part of their homeowners insurance, it is estimated that less than 40% of the total losses for Hurricane Irene damage were paid by insurance carriers.  This is a lower amount that in past hurricanes and is an illustration of how important it is to have flood coverage, especially if you live near water or in a coastal area. 

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