Hurricane and Flood Insurance: What You Should Know

By Lisa Scontras

Hurricane Dorian, which delivered a catastrophic blow to the Bahamas, as well as water and wind damage along the eastern U.S. and Canadian coast, is a compelling reminder for Hawaii homeowners to review their own storm coverage and to brush up on exactly what your basic homeowners insurance covers … and what it doesn’t.

It may surprise homeowners to learn that standard home insurance policies are not all-inclusive — and most specifically do not cover damage caused by hurricanes or flooding. Property loss after a hurricane, flooding due to heavy rain or tsunami inundation may not be covered at all.

In Hawaii, hurricane insurance is generally a rider added to an existing policy for an additional cost. Flood insurance policies are a totally different animal and are sold separately. It’s wise to have them both.

“Some people believe that hurricane insurance covers damage from ‘storm surge’ during a hurricane,” said Sue Savio, owner of Insurance Associates, one of the largest writers of flood insurance in Hawaii. “In fact, you need flood insurance to protect your property from storm surge.”

She said a separate hurricane rider protects your property from damage caused by wind and wind-driven rain, not rising surface water. Only “flood insurance” covers damage from a flood.

“Flood insurance covers direct damage from rising surface water, however caused,” Savio explained. “The water could come from an overflowing river, stream or canal, or from a tsunami, or from storm surge during a hurricane.”

Many homeowners wrongly assume that if they’re not in a designated flood zone, they don’t need flood insurance. According to FEMA, almost 25 percent of flood insurance claims are paid to victims living outside an established flood zone and in zones labeled low-to-moderate flood risk.

“People think that you have to live in a high-risk flood zone in order to have a flood loss,” Savio said, who specializes in condo insurance. “In fact, more than a quarter of all flood losses occur in areas of low-to-moderate risk of flooding.”

For condo dwellers, homeowners associations typically provide hurricane insurance for the structure, but may not adequately insure personal property loss, if at all. Coverage for hurricane loss of the contents remains up to each individual homeowner.

Last year, Hurricane Lane came very close to causing major damage to the Hawaiian islands. Being prepared requires forward thinking. In addition to getting a hurricane kit together, it is a good idea to review insurance coverage. It can take 30 days after purchasing a flood insurance policy before the coverage takes effect, so it’s important not to wait.

Although hurricane season officially runs from June through November, disaster can happen at any time. Evaluate your insurance coverage, create a disaster plan and kit, to better protect your family and home.