How Does A Named Storm Affect My Insurance?

If a hurricane is approaching, it’s typically too late to purchase a new insurance policy or make significant changes to your current one. Most insurers have a “hurricane warning” clause that prohibits new coverage or changes to existing policies once a storm is imminent.

However, you should review your current policy to ensure that you have adequate coverage. Call us at 301-948-2010 if you have any questions and we’ll be happy to help you!

Flood insurance has to be purchased as a separate policy. It is not included in a typical homeowners insurance policy. It is important to note that flood insurance policies have a 30-day mandatory waiting period before going into effect. This is due to the fact that flood insurance is federally regulated through FEMA’s National Flood Insurance Program.

Named storms can significantly impact your insurance coverages in several ways:

1. Properly Damage: If a named storm causes damage to your home, your homeowners insurance typically covers repairs, but you’ll need to check your policy for specific exclusions or limitations related to storm damage.
2. Hurricane Deductibles: Many insurers have a separate hurricane or named storm deductible. This amount is usually a percentage of your home’s insured value, meaning you may need to pay more out of pocket before your insurance kicks in.
3. Flood Insurance: Standard homeowners insurance does not cover damage from floods. If a named storm causes flooding, you’ll need a separate flood insurance policy. Many policies have a waiting period before coverage begins, so it’s wise to have this in place well in advance of storm season.
4. Loss of Use: If your home is uninhabitable due to storm damage, your policy may cover additional living expenses (ALE) for a certain period of time. Check your policy limits as well as the duration of the policy.
5. Coverage Limitations: Some insurance companies might impose stricter underwriting guidelines or limit coverage in areas frequently affected by storms, potentially impacting your ability to obtain or renew policies.
6. Claims Process: After a named storm, claims might increase significantly, which can lead to delays in processing. Be sure to document all damage thoroughly to facilitate your claim.

If you have any questions regarding how a named storm affects your insurance, don’t hesitate to give us a call. We’re happy to help!