Even the best home insurance will not cover every type of hurricane damage. If you live near the coast, knowing what your homeowners insurance will and will not cover is critical to finding the right hurricane insurance.

What is hurricane insurance?

In theory, there is no such thing as "hurricane insurance." Instead, you'll need to protect your home from the two most common causes of hurricane damage: water and wind.

To ensure adequate hurricane coverage, you may need to purchase these separate policies:

• Flood insurance. Floods, including storm surge water, are not covered by any homeowners insurance policy. You'll need flood insurance to get coverage.
• Windstorm insurance. Windstorm damage is not covered by homeowners insurance policies in some hurricane-prone states. If you live in one of these states and want to be covered, you must purchase a separate windstorm insurance policy.

Does homeowners insurance cover hurricane damage?

Flooding is not covered by a standard homeowners insurance policy, but you can purchase flood insurance separately through the National Flood Insurance Program or on the private market. Many major insurers offer flood insurance through a partnership with the NFIP, so you can probably get it through your home insurance agent.

In most states, standard homeowner policies cover wind damage, including hurricanes. However, if you live in a high-risk coastal state, you may need to purchase separate windstorm insurance through your insurance company or a state-run insurance pool. It may also be available as an add-on to your current policy. Windstorm insurance protects against damage caused by any strong wind, not just hurricanes.

Here are some examples of associations that provide windstorm coverage — and often hail damage coverage — to homeowners who live in high-risk coastal areas and are unable to obtain it elsewhere:

• Alabama: Alabama Insurance Underwriting Association.
• Connecticut: Coastal Market Assistance Program.
• Delaware: Insurance Placement Facility of Delaware.
• Florida: Citizens Property Insurance Corporation.
• Georgia: Georgia Underwriting Association.
• Louisiana: Louisiana Citizens Property Insurance Corporation.
• Maryland: Maryland Joint Insurance Association.
• Massachusetts: Massachusetts Property Insurance Underwriting Association.
• Mississippi: Mississippi Windstorm Underwriting Association.
• New Jersey: New Jersey Insurance Underwriting Association.
• New York: New York Property Insurance Underwriting Association.
• Rhode Island: Rhode Island Joint Reassurance Association.
• South Carolina: South Carolina Wind and Hail Underwriting Association.
• Texas: Texas Windstorm Insurance Association.
• Virginia: Virginia Property Insurance Association.

Does renters insurance cover hurricane damage?

Like homeowners insurance, most renters policies will not cover flood damage to your belongings caused by a hurricane or other storm. That may not matter if you live on the eighth floor of a high-rise, but if you rent a house or a ground-floor apartment near the coast, flood insurance may be worthwhile. (Remember that your landlord's insurance only covers the structure of the building, not your personal belongings.)

Wind damage is covered by most renters insurance policies, though it is sometimes excluded in high-risk areas. If wind damage is a concern, double-check your insurance policy to ensure you're covered. If not, contact your insurance company or agent to see if this coverage can be added to your policy.

Windstorm, named storm and hurricane deductibles

On home and renters policies, some insurers impose a separate hurricane, named storm, and/or windstorm deductible. A deductible is the amount deducted from your insurer's claim payout.

Although these deductibles appear to be the same, there are significant differences:

• Windstorm deductible: Also known as a wind/hail deductible, this applies to damage caused not only by hurricanes but also by tornadoes or other high winds.
• Named storm deductible: This type of deductible usually applies if your home is damaged by a storm named by the National Weather Service or the National Hurricane Center. This type of deductible would not be triggered by a tornado or other severe windstorm.
• Hurricane deductible: In most cases, a hurricane deductible is only activated when a storm has high enough winds to be classified as a hurricane (rather than a tropical storm or depression).

Home insurance deductibles are typically a fixed dollar amount, such as $1,000, whereas wind, named storm, and hurricane deductibles are typically a percentage of the insured value of your home. They typically range from 1% to 5%, though they can be higher in high-risk coastal areas. If your home is insured for $500,000 and you have a 5% wind deductible, your payment will be reduced by up to $25,000 if you file a claim.

Check with your agent to ensure that you understand the deductibles that apply to your policy and the circumstances under which they may be triggered.

According to the Insurance Information Institute, the following 19 coastal states and Washington, D.C. allow insurers to charge special deductibles for hurricane damage.

Deductible percentages differ depending on the state and insurance company. As an example:

• Alabama. Wind/hail/hurricane deductibles of 1%, 2%, 5%, and 10% are available from the Alabama Insurance Underwriting Association.
• Florida. Insurers must provide hurricane deductible options of $500, 2%, 5%, and 10%. In some cases, deductibles can exceed 10%. The state has a "single season hurricane deductible," which means you only have to pay one hurricane deductible during a given hurricane season, even if your home is hit by multiple storms. Once you've met your hurricane deductible, your policy's general deductible — usually a flat dollar amount — will apply to any subsequent hurricane claims.
• Massachusetts. Wind deductibles are required by some insurance companies for coastal residents. Depending on how much coverage you require and how close you are to the shore, these may be fixed dollar amounts or percentages.
• New York. Deductibles typically range from 1% to 5% of the gross income. There are also higher percentages and flat amounts available.
• Pennsylvania. Under homeowners policies, hurricane and storm deductibles typically range from 1% to 5%.
• Rhode Island. A windstorm deductible on a homeowners policy cannot exceed 5% of the insured value of the home.

How much is hurricane insurance?

According to InsuredCircle rate analysis, the average cost of homeowners insurance in the United States is $1,631 per year, while flood insurance from the NFIP costs $732 per year. On average, this amounts to a total hurricane insurance cost of $2,363 per year.

Editor's note: The Federal Emergency Management Agency (FEMA) has announced that new flood insurance rates will go into effect on October 1, 2021, for new policyholders and those eligible for renewal. All existing policies that renew on or after April 1, 2022, will be subject to the new rates as well. Premiums will be reduced for approximately 23% of policyholders, while everyone else will pay more.

To be fully protected against a hurricane, some coastal homeowners will need to purchase wind coverage in addition to flood and homeowners insurance, which can be costly. According to the Texas Windstorm Insurance Association, the average annual residential premium is $1,700.

If you rent, hurricane insurance is significantly less expensive. According to InsuredCircle rate analysis, the NFIP offers flood insurance for renters for as little as $99 per year, while the average cost of renters insurance is $168 per year.

Your own rates will differ depending on where you live, how much hurricane coverage you require, and the deductibles you select.

Tips for buying hurricane coverage

• If you buy home, flood, or windstorm insurance — or all three — make sure you have enough coverage to cover the full cost of rebuilding your home and replacing your belongings. Your insurance agent can assist you in determining the appropriate amount.
• Don't be a slacker. Flood insurance policies typically have a 30-day waiting period between the time you purchase and the time coverage begins. Furthermore, once a storm is predicted, insurers are unlikely to change your coverage.
• When it comes time to renew your policy, keep in mind that you may be able to save money by comparing quotes to find a lower rate for the same coverage.