4 home insurance pitfalls to avoid during hurricane season

For homeowners in coastal states, the 2020 hurricane season could mean financial disaster. Named storms are rolling in at a record pace, with as many as 25 expected in the Atlantic this season — twice the average number. After battering the Louisiana coast in late August, Hurricane Laura alone may account for as much as $12 billion in insured losses.

Even if you think you’re prepared, you may discover that your homeowners insurance doesn’t fully cover damage from a hurricane. To make sure you’re protected, avoid these four costly pitfalls.

SKIPPING FLOOD INSURANCE

Flood insurance is optional, and only 15% of American households buy it, says Mark Friedlander, spokesperson for the Insurance Information Institute.

But when a hurricane or storm hits, flooding causes more residential losses than high winds, according to a 2019 report from the U.S. Congressional Budget Office. That means most homeowners, even those with hurricane or wind coverage, aren’t insured for the most severe storm threat they face.

“The biggest error people make is they think it won’t happen to them,” says Patty Templeton-Jones, president of Florida-based insurer Wright Flood.

Almost nobody is immune. Flooding has affected 99% of U.S. counties since 1996, according to the Federal Emergency Management Agency. And even a little floodwater can be highly destructive; FEMA says an inch can cause as much as $25,000 in damage.

Flood insurance typically comes from the National Flood Insurance Program via one of its authorized providers, and coverage is sold separately for the structure and contents of the home.

NOT SECURING COVERAGE IN TIME

When a hurricane is on its way, it may be too late to add coverage to your homeowners policy.

“Don’t wait until the storm is coming,” warns...