In Hampton Roads hurricane season isn’t a question of IF, it’s WHEN.
Each year, homeowners assume their insurance will cover storm damage, only to find out too late that key protections were missing or misunderstood. The reality is simple: many policies cover less than people think, and the small gaps can turn into major financial setbacks after a storm.
The biggest misunderstanding homeowners have is that not all water damage is covered by a standard homeowner’s policy. Most homeowner’s insurance does not cover water damage when it’s long-term damage, when it’s caused by storm surge or by rising water. This rising water could be from rivers and streams or even heavy rain overwhelming the ground. That type of damage requires a separate flood insurance policy, often provided through the National Flood Insurance Program (NFIP) or other private carriers. Without it, homeowners can be left paying out of pocket for one of the most common storm-related losses in our area.
Not all storm damage is treated the same because how it happened is just as important as what happened. What does this mean? Well, many policies do cover wind damage like shingles being torn off, but what about water damage in your living room? During a hurricane where shingles are blown off, or maybe a tree falls onto your roof, there will be a hole and that means you will now have water damage inside from the rain.
Now let’s say the house next door has similar amounts of water damage in their living room, but the damage came from rising water, not a hole in the roof. This would be flood damage. When the claims representative determines that water damage is due to flooding, there’s generally no coverage under a homeowner’s policy. This misunderstanding leads to many claims being filed the wrong way and/or denied, leaving homeowners frustrated during an already stressful time. It also potentially adds to future problems since they now have a claim on their record, a $0 paid claim, the type you want to avoid.
Here are some other costly mistakes to avoid:
- Waiting too long to review coverage. Set an appointment today because policies can’t be adjusted once a storm is approaching, and many times new policies can’t be written.
- Not understanding your deductible. Hurricane deductibles are often separate, higher amounts than the all-peril deductible. Every company has different definitions. Learn what your policy means when it comes to wind/hail, a hurricane, tropical cyclone or other deductibles.
- Assuming “full coverage” means anything. There’s no such thing as “full coverage.” You will not find that language in any policy contract. Every policy has limits and exclusions, and these are the gaps that tend to surface only after damage has already occurred.
- Not protecting your home from further losses after a storm. Most policies have a section outlining your responsibilities after a loss. It’s important to read your policy and understand what your responsibilities are before you have a loss.
A short review now can prevent major issues later, so before hurricane season begins, take a few minutes to review this checklist:
- Confirm whether you have flood insurance.
- Review all of your deductibles and responsibilities.
- Document your home, using photos and videos for claims; I recommend storing on cloud storage.
- Check roof condition and exterior vulnerabilities.
- Store your policy information somewhere accessible and safe from water and fire.
- Make sure you have a local insurance agent who can help you.
Hurricane season preparation isn’t just about supplies. It’s about knowing where you stand before you need to rely on your coverage. If you haven’t reviewed your policy recently, now is the time to make sure there are no surprises when it matters most. Having a local agent who’s knowledgeable and helpful goes a long way to help you and your family sleep well at night.
