Here's what most people don't realize until it's too late: when a hurricane hits your home, you're dealing with two completely different types of insurance. Your regular homeowners policy covers the wind damage—like when a tree crashes through your roof or flying debris shatters your windows. But the flooding? That's a separate policy entirely. And if you're in a coastal state, confusing these two coverages could leave you with tens of thousands of dollars in uncovered damage.
The 2024 hurricane season drove this point home hard. Hurricanes Helene and Milton caused over $43.7 billion in insured losses, making them the costliest natural disasters of the year. Florida residents affected by Hurricane Helene received average flood insurance claims of $38,970—and that's just for the water damage. Wind damage claims were separate. Let's break down exactly what you need to know to protect your home.
What Hurricane Insurance Actually Means
First things first: there's no single policy called 'hurricane insurance.' When people talk about hurricane insurance, they're really talking about two separate policies working together—your homeowners insurance and flood insurance. Your homeowners policy handles wind damage and wind-driven rain that gets in through damaged openings. This includes roof damage from high winds, broken windows from flying debris, and even damage to your fence or detached garage.
But here's where it gets tricky: your homeowners policy specifically excludes flooding. That means rising water, storm surge, and rain that seeps in from the ground up—the kind of flooding that happens in almost every major hurricane—isn't covered at all. You need a separate flood insurance policy from either the National Flood Insurance Program (NFIP) or a private insurer.
In some high-risk coastal areas, you might even need a third policy: separate windstorm or wind-only insurance. In states like Florida and Texas, standard homeowners policies sometimes exclude wind coverage entirely in certain coastal zones. If that's your situation, you'll need to get wind coverage through your state's windstorm insurance pool, like the Texas Windstorm Insurance Association or Citizens Property Insurance in Florida.
Understanding Hurricane Deductibles (And Why They're So High)
Hurricane deductibles work differently than your regular homeowners insurance deductible. Instead of a flat dollar amount like $1,000 or $2,500, hurricane deductibles are calculated as a percentage of your home's insured value—typically 2% to 5%. If your home is insured for $350,000 and you have a 2% hurricane deductible, you'll pay the first $7,000 of damage out of pocket. With a 5% deductible, that jumps to $17,500.
These higher deductibles apply in 19 states and Washington, D.C., including all Gulf and Atlantic coastal states. The deductible kicks in when the National Weather Service officially names a storm. That's why they're sometimes called 'named storm deductibles.' Once a tropical storm gets a name like 'Helene' or 'Milton,' your percentage deductible applies instead of your regular dollar-amount deductible.
And here's the part that catches people off guard: if you have both wind damage and flood damage from the same hurricane, you'll pay separate deductibles for each policy. Your homeowners policy has one deductible for wind damage, and your flood policy has another. For many homeowners, that means paying two substantial deductibles after a single storm.
The Real Cost of Hurricane Coverage in 2024
If you live in a hurricane-prone state, you've probably noticed your insurance costs climbing. Florida residents now pay an average of $11,759 per year for homeowners insurance—more than any other state in the nation. Texas homeowners pay around $4,437 annually, while Louisiana residents saw their premiums jump 38% in 2024 to an average of $10,964.
But that's just homeowners insurance. Add flood insurance, and you're looking at additional costs. The average NFIP flood insurance policy varies based on your flood zone and coverage amount, but it's a necessary expense if you're in a coastal area. In high-risk Texas coastal zones, for example, combining homeowners insurance, flood coverage, and windstorm insurance can total over $5,400 annually.
Why are costs so high? The 2024 hurricane season showed exactly why. The NFIP paid out so many claims—98,667 filed, with 74,272 paid at an average of $33,905 each—that the program depleted its funds and had to borrow $2 billion from the U.S. Treasury. When insurers pay out billions in claims, they raise rates the following year to rebuild their reserves. It's a cycle that's making coastal living increasingly expensive.
What's Actually Covered (And What's Not)
Let's walk through a real scenario. A hurricane makes landfall near your home. The wind tears shingles off your roof, and rain pours in through the damaged area, ruining your ceiling and furniture below. At the same time, storm surge floods your neighborhood, and water rises into your first floor, destroying your hardwood floors and appliances.
Here's how your claims would work: Your homeowners insurance covers the roof damage and the water damage from rain entering through the storm-damaged roof. That's considered wind-driven rain, and it's covered. Your flood insurance covers the damage from the storm surge—the flooded first floor, ruined hardwood, and destroyed appliances. Same storm, two separate claims, two separate deductibles.
Documentation is crucial here. Take photos and videos of all damage before you start cleanup. Try to document whether water came from above (wind-driven rain through damaged openings) or below (flooding from the ground up). Insurance adjusters will need to determine which policy covers which damage, and clear documentation makes that process much smoother.
How to Prepare Before Hurricane Season
Hurricane season runs from June through November, and the National Oceanic and Atmospheric Administration predicts another active season in 2025, with 13 to 19 named storms expected. Here's the thing: you can't buy flood insurance once a storm is named and heading your way. NFIP policies have a 30-day waiting period, which means you need to purchase coverage well before hurricane season starts.
Review your coverage limits now, not when a storm is brewing in the Gulf. Make sure your dwelling coverage is high enough to rebuild your home at today's construction costs. Check that your flood policy limits are adequate—many homeowners buy the minimum and then discover it's not enough when disaster strikes. The NFIP offers up to $250,000 in building coverage and $100,000 in contents coverage, but you might need private flood insurance for higher limits.
Create a home inventory before disaster strikes. Take photos and videos of every room in your house, including inside closets and cabinets. Document serial numbers on electronics and appliances. Store this inventory somewhere off-site—in cloud storage or with a trusted friend or family member outside your area. When you're filing claims after a hurricane, you'll be grateful you did this prep work.
Getting Started With Hurricane Protection
If you're living in a coastal state and don't have flood insurance yet, now is the time to act. Start by reviewing your current homeowners policy to understand what's covered and what's not. Look for the wind and hurricane deductible section—it should clearly state the percentage you'll pay out of pocket for named storm damage.
Next, get a flood insurance quote. You can purchase NFIP coverage through most insurance agents, or compare private flood insurance options that might offer higher coverage limits or additional features. Don't assume you don't need it just because you're not in a high-risk flood zone—20% to 25% of flood claims come from moderate-to-low risk areas.
Hurricane insurance isn't simple, but understanding the difference between wind and flood coverage could save you from financial devastation. With hurricane season getting more active and insurance costs climbing, the best time to review your coverage was yesterday. The second-best time is right now.
