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Yahoo
28-06-2025
- Business
- Yahoo
What is hurricane insurance, and what does it cover?
Insurance helps you avoid financial catastrophe if a hurricane strikes your home. But you may be surprised to learn there's no such thing as a hurricane insurance policy. Hurricane insurance usually refers to a combination of home, flood, and windstorm coverages that each come into play depending on the type of hurricane damage. If you live somewhere with frequent hurricanes, having home insurance isn't enough. A standard home insurance policy doesn't cover flooding, a common cause of hurricane losses due to storm surge. Your policy may also exclude wind damage, depending on where you live. Hurricane insurance doesn't technically exist, at least as a standalone policy. Usually, hurricane insurance refers to a patchwork of coverages, primarily homeowners insurance, flood insurance, and windstorm insurance (if wind damage is excluded by your policy) that kick in if a storm damages your home or personal property. Most home insurance covers damage from rain and wind, but for protection from flood damage, you usually need separate flood insurance. If you live somewhere vulnerable to hurricanes, you may also need additional coverage for windstorm damage. Hurricane insurance usually refers to policies that protect your home and the belongings inside. But you may need other types of insurance to safeguard your finances against a hurricane. For example, auto insurance only covers damage from a hurricane or tropical storm if you have comprehensive coverage. Hurricane travel insurance is a common benefit in trip cancellation and trip interruption policies, but coverage will only apply if you buy a policy before a storm is named. Learn more: Does car insurance cover flood damage? You can often get quotes for hurricane insurance online, by phone, or through an agent. Once you find coverage that meets your needs, you'll need to review and sign the contract. Below, you'll find specifics on how to shop for each type of hurricane coverage. To get homeowners insurance quotes, you'll need to answer some questions like: Who lives in your household? Have you had previous home insurance claims? How old is your home? What type of roof do you have, and how old is it? How much would it cost to replace your home? What upgrades have you made to the home? A good rule of thumb is to get several quotes to ensure your rate is competitive. Make sure you understand what your homeowners insurance covers, as well as your premiums, deductibles, policy limits, and whether your property is insured at the actual cash value (ACV) or the replacement cost value (RCV). Learn more: Actual cash value vs. replacement cost: Understanding the difference in home insurance Expert tip: In some circumstances, you may want to purchase add-ons called endorsements for additional coverage. For example, hurricanes can cause issues with sewage systems, but most homeowner policies exclude damage from sewer and sump pump backups. Some homeowners add a water backup endorsement or a standalone policy for extra protection. Coverage typically lasts a year. Your carrier is usually required to send you a renewal notice 30 to 60 days in advance. Flooding isn't covered by most home or renters insurance, so you'll need to buy a separate policy or add coverage through a rider or an endorsement. It's possible to buy flood insurance through the private marketplace. However, most policies are issued by the National Flood Insurance Program (NFIP), a federal program managed by the Federal Emergency Management Agency (FEMA). NFIP policies are sold and administered by a network of dozens of insurers and thousands of independent insurance agents. Unlike most types of insurance, it doesn't pay to shop around for NFIP coverage. That's because all insurers and agents use the same formula to calculate premiums. Rates are based on the same three factors that are specific to your home: Where it's built How it's built Estimated cost of replacing it You may be able to lower your flood premium by making various storm upgrades, which we'll discuss in more detail shortly. You can get a flood insurance quote using the NFIP's quoting tool, and then share the quote with an insurance agent or carrier to buy a policy. Learn more: How much does flood insurance cost in every state? NFIP policies last for one year, though there's a 30-day grace period after the policy expires. Coverage will still kick in if you file a claim during this window as long as you renew your policy and pay your full premium before the grace period ends. If you want a private flood insurance quote, you can contact insurers directly or work with an agent. Private flood insurance can be cheaper and offer higher coverage limits, but a private insurer can refuse to renew your policy or raise your rate substantially if it determines your property is at high risk of flooding. Also, forgoing an NFIP policy could mean you lose out on stable rates and cost-saving subsidies. Learn more: How FEMA flood insurance works If you live in a coastal area frequently threatened by hurricanes or a Midwestern region where tornadoes are common, you might need separate windstorm coverage. Otherwise, your homeowners insurance policy likely protects you against damage from high winds. If wind damage isn't covered under your homeowners policy, you may need a windstorm endorsement or a standalone windstorm policy. You can get quotes from several companies, including your home insurance provider, to ensure you get the best rate. However, in some especially high-risk areas, you may need to buy coverage through a Fair Access to Insurance Requirements (FAIR) plan, a state insurance pool for those who can't get coverage through a private carrier. A home insurance deductible is the out-of-pocket cost you pay before coverage kicks in. In the following 19 states plus the District of Columbia, separate and distinct deductibles apply to damage from a named storm: Alabama Connecticut Delaware Florida Georgia Hawaii Louisiana Maine Maryland Massachusetts Mississippi New Jersey New York North Carolina Pennsylvania Rhode Island South Carolina Texas Virginia Washington, D.C. In some other states, home insurance companies are allowed to charge separate hurricane deductibles. Insurers can also charge separate windstorm or wind/hail deductibles. Named storm deductibles are frequently assessed as a percentage of the home's value, often ranging from 1% to 10%, according to the National Association of Insurance Commissioners (NAIC). Suppose you have a 6% named storm deductible and your home is valued at $400,000. You'd be on the hook for $24,000 if a hurricane damaged your home before insurance would kick in. You'll also need to pay a deductible if you file a flood insurance claim. NFIP deductibles are usually between $1,000 and $10,000. Your annual premiums for various types of hurricane coverage depend on a host of factors, but here are some typical costs from various sources: Median cost of homeowners insurance for an HO-5 policy with $300,000 to $324,999 worth of dwelling coverage: $1,243, according to NAIC 2022 data Typical cost of home insurance in states with separate hurricane or windstorm deductibles, according to The Zebra: $349 to $2,000+ Median cost of flood insurance through NFIP: $786 Learn more: How much is homeowners insurance? A guide to lowering costs. You could get significant insurance discounts by making your home more hurricane-resistant. Here are some common ways to save money: Find out if your city or county participates in FEMA's Community Ratings System and nudge them to join, as participation could make you eligible for insurance discounts. Get an elevation certificate to show your home's elevation relative to the estimated height that floodwater could reach in a disaster. Elevate your home above the base flood level. You could earn discounts for each additional foot of elevation. Elevating a home just one foot above the base flood elevation could land you a 30% discount on NFIP coverage. Elevate your utilities, like your air conditioner or water heater, so they'll be less likely to be damaged by storm waters. Install storm shutters and impact-resistant windows to protect your home from storm debris and other wind-related damage. Fill in basements by backfilling them, as the NFIP won't allow or cover most basements. Upgrade your roof covering. Some types of roof covering, like asphalt or fiberglass shingles, concrete or clay tiles, or metal panels, could save you money on windstorm coverage. Add flood openings or vents in ground-floor crawlspaces on two or more exterior walls. Expert tip: Review insurance discounts specific to your home through NFIP's flood insurance mitigation discount tool. Nine of the 10 most costly natural disasters that occurred through the end of 2024 were hurricanes. Below, you'll find the most expensive hurricanes in U.S. history, according to the NAIC and the NOAA. Your home is often your most valuable asset, so maintaining adequate insurance is essential. Follow these tips to make sure your hurricane coverage offers sufficient protection: There's usually a 30-day waiting period before NFIP policies take effect. Most private carriers also put a moratorium on writing new policies in regions threatened by a natural disaster 24 to 48 hours before the expected weather event, so don't wait until a hurricane is on its way to get flood insurance. Remember, a standard home policy doesn't cover flood damage, and you'll need separate wind coverage in some high-risk areas. Review your insurance documents and talk to an insurance agent if you need additional coverage. Most renters insurance policies also exclude flood damage, so you'll need a separate flood policy to cover your personal belongings. Selecting higher deductibles is usually a good way to lower your insurance premium costs. For example, buying an NFIP policy with the maximum $10,000 deductible could lower your premium by up to 40%. But coverage doesn't kick in until you've paid your deductible out of pocket, so consider opting for lower deductibles and higher premiums if you can't afford to pay your deductible with savings. A standard home policy insures your home's structure at its replacement cost value (RCV), or the amount it would cost to rebuild your home. If you're concerned that the cost of rebuilding would exceed your policy limits, look into increasing your potential payout through extended replacement cost coverage or guaranteed replacement cost coverage. Your personal property is protected under a standard home or renter's policy, so make sure you document all your belongings. Taking photos and videos can be helpful. Most policies default to actual cash value (ACV) coverage for personal property, which reimburses you based on its market value, minus depreciation. However, you can usually get RCV coverage for an additional cost. Note that flooding damage to your belongings generally isn't covered by homeowner or renters insurance – you need separate flood insurance for that. Most homeowner and renters policies provide additional living expenses (ALE) coverage (also called loss-of-use coverage), which pays for costs like temporary housing and meals if you have to relocate after your home is damaged or destroyed. Many policies limit ALE reimbursement to a specific amount of time, but you can often buy extra coverage. Keep in mind, though, that loss-of-use coverage kicks in only if the type of damage is covered by the policy. That means you won't get help from your home or renters insurance carrier if you have to relocate due to flood damage. Unfortunately, NFIP policies don't provide ALE coverage, so you'd likely have to pay out of pocket if hurricane flooding forced you to temporarily move. However, some private insurers include loss-of-use coverage in flood policies. Any damage that occurs to the house or building you rent is covered by your landlord's insurance, while renters insurance covers your personal property, like clothing and electronics. Renters insurance will often cover hurricane damage to your belongings if it's caused by something like storm winds, hail or lightning. However, you'll need a separate policy to cover your belongings from hurricane-related flood damage. Your car insurance will only kick in for hurricane damage if you have comprehensive coverage. This type of insurance isn't mandated by law, but most lenders require you to carry it while you have an auto loan. Yes, you can get flood insurance during hurricane season, which runs from May 1 through Nov. 30. However, most NFIP policies have a 30-day waiting period before they take effect. Private insurers often issue a moratorium on writing new policies in an area while it's under threat of severe weather.
CBS News
26-06-2025
- Business
- CBS News
When should you boost your supplemental life insurance? Experts weigh in
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Supplemental life insurance can provide critical financial protection that you may otherwise miss out on. Getty Images The majority of American workers — 53% in 2024 — have life insurance through their workplace, according to LIMRA. However, as the cost of living rises, most workplace life insurance policies fail to keep pace. The median basic workplace coverage is just $20,000 or one times a worker's salary, which likely isn't enough to provide for your family if you pass away, the survey notes. "A basic group life policy from your employer, usually one to two times your salary, just isn't enough in today's world," says Michael Foguth, founder of Foguth Financial Group. "If you have a mortgage, kids, or even significant debt, supplemental life insurance can be a game-changer." And even if you have significantly more coverage, it likely isn't keeping up with the cost of living. Unfortunately, far too many people are just relying on their employer's plan. That's where supplemental coverage comes in. Supplemental life insurance, referring to a policy you buy to supplement your basic workplace policy, creates an additional safety net so your family won't have to rely solely on your basic workplace life insurance. The importance of this type of protection grows as your financial obligations evolve. We spoke with two life insurance experts to find out when you should consider supplemental life insurance and how to figure out how much coverage is appropriate for your situation. When should you boost your supplemental life insurance, according to experts? To better understand when it may (or may not be) appropriate to increase your supplemental life insurance coverage, it first helps to understand the various types of supplemental policies available. Supplemental life insurance policies come in a few different forms. First, many employers offer supplemental life insurance in addition to their basic plan. You can also purchase a private policy directly through an insurance company. Both options have some advantages. A group policy, such as one you'd get through your employer, typically doesn't require a medical exam and may come at a cheaper price tag. However, if you lose your job, your insurance goes with it. And you may find that it's more expensive or more difficult to get a different policy later on. Private plans have the disadvantage of being more expensive and more difficult to qualify for — health histories and medical exams are often required. However, once you lock in your policy, you'll have coverage for your entire term, even if you lose your job. You can also choose between term and whole life insurance. Term life insurance is the most affordable and provides a set death benefit for a specific number of years. Whole life insurance, meanwhile, covers you for your whole life as long as you continue to make payments and usually has a cash-value component in addition to the death benefit. However, these plans are more expensive. "Term insurance is usually the best choice for most people: it's affordable and provides substantial coverage during your high-need years," says Foguth. "Permanent insurance has its place, but only if you've already maxed out other financial priorities." Depending on your situation, supplemental coverage may or may not be the right choice for you. You'll probably want to consider supplemental life insurance if your basic workplace policy has a low death benefit, especially if your family financially depends on you and your income. Certain life milestones could be a sign it's time to reconsider your life insurance coverage and boost your supplemental coverage. "We find that younger families in particular need supplemental life insurance," says Matt Hylland, a financial planner and investment advisor with Arnold and Mote Wealth Management. "For one reason, workplace group life insurance is usually based on a multiple of your salary, and younger workers may not yet be at peak salary, where two or three times their current salary is enough insurance." "Also, younger families, particularly those with young children, have decades of expenses and goals that insurance needs to help cover. As you age, your insurance need typically decreases, but your 30s and 40s are typically the peak years for insurance needs." When you go through any major life events use that as an opportunity to reevaluate your coverage. How to calculate your life insurance needs There are a few different rules of thumb that experts tout for determining your life insurance needs. For example, some recommend multiplying your income by a certain amount, such as 10 times. Others base it on your age and how close you are to retirement. While these methods can be a good starting point, they don't take into account your unique financial situation and needs. Rather than relying on a basic rule of thumb, consider what purposes your life insurance would serve. Would it provide income for your family? Help pay off your household debt? Send your kids to college? Take all of that into account to decide how much coverage makes sense for you. For example, you may need to substitute your income at least until your kids head off to college. If you make $75,000 per year and your youngest graduates from high school in ten years, that's $750,000 in coverage. Then, you may choose to add in your family's total debt obligations, including your mortgage, auto loans, credit cards and anything else. Finally, if your goal is to pay for your children's college educations, consider enough coverage to do that. It's also important to consider what insurance term you need. According to Hylland, it's important to match your life insurance policy with your family's needs. For example, you might choose a policy that's set to end once your kids have moved out of the home or you've paid off your mortgage. "We also generally say to be conservative and purchase insurance with a slightly longer term than you need," says Hylland. "For example, if your kids will be graduated from college in 15 years, perhaps go with a 20-year term policy. You can always surrender or cancel a term policy if you do not need it, but it will be costly to get insurance later in life if you find that you need additional years of coverage." It's worth noting that, in some cases, a supplemental policy through your employer still may not be enough. It's important to run the numbers for yourself to make sure you have enough coverage, even if that means purchasing private insurance in addition to your workplace plan. The bottom line Almost anyone can benefit from some sort of life insurance, and it's usually non-negotiable for anyone with a family to support. Unfortunately, a basic workplace life insurance plan doesn't usually provide enough coverage. Make sure to review your life insurance coverage regularly, especially as open enrollment rolls around. It's important to weigh all of your options when you're shopping for policies, including deciding between a term or permanent policy and a workplace or private policy.
Associated Press
13-06-2025
- Automotive
- Associated Press
Daniel Ingram Insurance Emphasizes Need for Automobile Insurance in Clarksville
Daniel Ingram Insurance offers coverage for liability, theft, disasters, and collisions, ensuring drivers' peace of mind. CLARKSVILLE, TN, UNITED STATES, June 13, 2025 / / -- Daniel Ingram Insurance is highlighting the essential role of automobile insurance in Clarksville, TN, as more residents prioritize financial protection and road safety. With local traffic patterns evolving and vehicle ownership on the rise, the agency offers adaptable insurance plans to meet diverse coverage needs. Auto insurance remains a legal and financial necessity for drivers across Tennessee. Daniel Ingram Insurance provides policies that address a wide range of risks—from liability coverage to protect against third-party claims to comprehensive plans that include theft, natural disaster damage, and collision recovery. These offerings support both new and experienced drivers in securing peace of mind on the road. The agency also provides options such as uninsured and underinsured motorist protection, medical payments coverage, and personal injury protection. These additions ensure broader coverage for incidents involving insufficiently insured drivers or injury-related expenses, which are often overlooked in basic plans. By tailoring policies to individual driving habits, vehicle types, and personal preferences, Daniel Ingram Insurance ensures each client receives meaningful, dependable protection. As the demand for flexible and affordable vehicle insurance grows, the agency remains committed to supporting drivers throughout the Clarksville area. For inquiries regarding automobile insurance in Clarksville, TN, contact details for Daniel Ingram Insurance are provided below. About Daniel Ingram Insurance: Daniel Ingram Insurance is a trusted provider of customized insurance solutions, serving individuals and families since 2020. Built on principles of integrity, education, and client care, the agency offers comprehensive coverage for home, auto, and specialty needs across Tennessee. Address: 1767 Wilma Rudolph Blvd Suite D City: Clarksville State: Tennessee Zip code: 37040 Daniel Ingram Daniel Ingram Insurance +1 (931) 614-0003 [email protected] Legal Disclaimer: EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
