Rising Hurricane Risks for Homeowners
Welcome to the 2024 Hurricane Season! Did you know that in recent years, thousands of homeowners have had their insurance policies canceled because they live in hurricane risk zones? With hurricanes and severe weather becoming more frequent, it’s never been more critical to have a solid backup plan in place. If you’re a homeowner in Florida, Louisiana, or Texas, your risk of losing coverage through no fault of your own is higher than ever. But don’t worry—we’re here to help walk you through practical steps, so you can be prepared and protected this hurricane season.
Why would my insurance company cancel my policy because I live in a hurricane-prone area?
It can feel like a cruel twist of fate if your insurance company cancels your insurance policy—especially if you’ve never filed a claim. With hurricanes and wildfires on the rise, insurers are paying out more than ever, and they’re getting nervous about future risks.
During what’s called a “hard insurance market,” insurance companies start tightening up. That means they set stricter rules for who they’ll cover, raise premiums, and even decide not to renew policies in high-risk areas, including areas with hurricane risks. And in some states, laws cap what insurers can charge, making it even harder for them to stay profitable. So, if they can’t make the numbers work, they may pull out of hurricane zones altogether.
If this is happening to you, you’re not alone. Many homeowners are facing the same challenges—trying to keep their coverage or find new insurers who are willing to take on the risk. It’s a tough situation, but understanding why it’s happening is the first step in finding a solution.
How can I prevent my insurance from being canceled due to my location in a hurricane zone during the 2024 hurricane season?
If you’ve avoided a home insurance cancellation so far while living in a hurricane zone, consider yourself lucky. But don’t get too comfortable! You’ll want to ensure you maintain your homeowners insurance for years to come. First, harden your home against hurricanes. You may want to invest in storm shutters, impact resistant windows, and reinforced doors. Additionally, strengthen your roof with hurricane straps. Taking these steps can help prove to your insurers that you’re serious about protecting your home.
While you’ve taken steps to prepare your home, your yard will need some work, too. Ensure you clear out your gutters, trim your trees, and secure outdoor items to prevent storm damage. Once you’ve completed your upgrades, store documentation such as receipts and photos to show your insurer that you’re doing your part in reducing risk.
Experts stress the importance of preparation for everyone in high-risk areas. “Regardless of the overall activity level predicted for 2024, coastal businesses and residents should remember: it only takes one landfalling hurricane to significantly disrupt lives and property,” emphasizes Mabé Villar Vega, a catastrophe risk research analyst at Allianz Commercial. This advice is just as crucial for homeowners, highlighting that proactive steps can make a difference when facing the uncertainty of hurricane seasons.
What are my options if my insurer cancels my policy due to hurricane risk?
If your home insurance policy does get cancelled by your insurer due to high hurricane risk, there’s still hope! Here are a few proactive steps you can take to find home insurance coverage before it’s too late:
- Explore State-Backed Insurance Programs: States like Florida may have special insurance programs for high hurricane risk properties that private insurers choose to avoid.
- Consider Surplus Lines Insurers: Surplus lines insurers cover unique or high-risk situations. Although, surplus lines may charge higher premiums and sometimes don’t cover as much as you’d like. You’ll certainly want to double check the fine print!
- Adjust Coverage Levels: Once you receive your cancellation notice, give your insurer a call to see if there’s anything you can do before the date of cancellation to continue your coverage. Ask if you can adjust your coverage levels, have a higher deductible, or prove that your home has been hurricane-proofed with receipts or photos.
- Seek Guidance from an Independent Insurance Agent: Experienced insurance brokers can help you navigate the market and find insurers who are willing to cover high hurricane risk properties. Plus, they can compare quotes, ensure you are adequately covered and act as an advocate on your behalf.
How can I make sure my home is adequately insured for the 2024 hurricane season?
As you review your coverage, check that your policy covers the full cost of rebuilding your home, not just its market value. You’ll want to adjust these limits as needed, especially if construction costs have risen. Next, check what your deductibles are and ensure you understand them. Many policies have separate deductibles for hurricane damage, often a percentage of your home’s insured value. Knowing your deductibles can help you plan for what you’ll need to pay out-of-pocket if tragedy strikes. Plus, if you haven’t already, document your valuables and create a comprehensive homeowners inventory list. This inventory list will prove to your insurers what you’ve lost and its replacement cost.
Do you have flood insurance? If you don’t have flood insurance but live in a hurricane zone, you may be severely underinsured, as standard homeowners insurance policies generally don’t cover flood damage. Ask your insurer about your current flood coverage. If you’re not insured for flooding, ask for a quote. Or, look into the National Flood Insurance Program (NFIP) or a private insurer of your choice.
Living in a hurricane-prone area definitely has its challenges, especially when it comes to keeping your homeowners insurance. By understanding why insurers might cancel your policy, taking steps to reduce risk, exploring different coverage options, and making sure your home is properly insured, you’ll be better prepared during this 2024 hurricane season. Stay proactive, informed, and ready to protect your home and peace of mind. If you have any questions or need help, you can call a YourPolicy agent at (866) 236-0203. Get in touch today to make sure you have the right coverage.
2024 Hurricane Season Quick FAQ’s
Is there a required amount of time insurers must provide notice a homeowner has been cancelled or non-renewed due to high risk?
Yes, insurers are generally required to notify policyholders of cancellation or non-renewal due to high risk. The required notice period varies by state but typically ranges from 30 to 60 days before the policy’s expiration date. Always check state-specific regulations for exact notice requirements.
When does the 2024 hurricane season start and end? The 2024 Atlantic hurricane season starts on June 1 and ends on November 30, but storms can form outside this period.
What are the predictions for the 2024 hurricane season? Experts predict an above-average hurricane season in 2024, with an increased number of named storms, hurricanes, and major hurricanes due to warmer sea temperatures.
How should I prepare my home for the 2024 hurricane season? To prepare your home, secure loose items, install storm shutters, reinforce your roof, check your insurance coverage, and create an emergency kit with essentials.
What should be in a hurricane emergency kit for 2024? A hurricane emergency kit should include water, non-perishable food, flashlights, batteries, a first aid kit, medications, important documents, pet care and a portable phone charger.
Does homeowners insurance cover hurricane damage in 2024? Standard homeowners insurance usually covers wind damage from hurricanes, but flood damage is typically excluded and requires separate flood insurance coverage.
