How Texas Hurricane Insurance Works
Texas hurricane insurance only works as well as the coverage you have. If you have homeowners insurance and nothing else, you may not have enough coverage to repair or replace your home and belongings. Furthermore, if you don’t carry high enough coverage limits, you may have gaps in your insurance coverage. That means you’re left to cover repair bills on your own.
The average residential claim from Hurricane Harvey, which made landfall in 2017, was $7,600. But the average flood insurance claim was much higher, at around $80,000.
Without flood insurance, you may have to pay that $80,000 out of your own pocket. The same is true for windstorm and hail damage if it isn’t a covered peril in your homeowners policy.
Homeowners, flood, and windstorm insurance work together to protect you and your family from financial devastation following a hurricane.
All three policy types have deductibles you must meet before the insurance kicks in. Texas is one of 19 states that have a separate hurricane deductible. The amount can vary from one policy to the next, but policyholders may have a different deductible for:
Windstorms: This applies to hurricane wind and hail damage and damage from tornadoes or other strong winds.
Named storms: Specific to hurricanes, if the National Weather Service or National Hurricane Center gives the storm a name, this deductible could apply.
Hurricanes: This can go into effect when a storm’s wind speed meets hurricane criteria rather than simply being a tropical storm or depression.
Your homeowners insurance deductible is typically a flat rate of around $500 or $1,000. If you have a fire, you’re responsible for the deductible amount, and the insurance company picks up the rest.
For hurricanes and windstorm damage, higher deductibles are often a percentage of your home’s insured value.
Policies generally set the amount at one to five percent. Hurricane deductibles can be higher in some coastal areas with an increased risk for hurricanes. For example, a $220,000 home could have a hurricane insurance deductible ranging from $2,200 to $11,000 or more.
Keep in mind that you must file a separate claim for each policy type you have. For example:
If the hurricane causes a fire, file a claim with your homeowners company.
A claim for flood damage should be filed with your flood insurance provider.
If you have a different insurer for windstorm and hail coverage, file a claim for damage with that company.
It can seem overwhelming, especially if you’re facing significant loss from a storm. Reach out to your insurance agent for help. They’ll usually assign an adjuster or claims specialist to walk you through the process.
Check Out: How to Prepare Your Homeowners Insurance for a Hurricane Claim