Hurricane Insurance Guide: Wind vs. Flood Coverage, Deductible Types, and State-Specific Requirements

Hurricanes are the most expensive natural disasters in American history. The 2017 hurricane season alone caused $265 billion in damage. Hurricane Ian in 2022 produced $113 billion in losses. And the insurance landscape for coastal [homeowners](/blog/home-insurance-savings) has never been more complex — or more expensive.

The fundamental problem: there is no single "hurricane insurance" policy. Hurricane damage is split across multiple policies with different deductibles, different coverage triggers, and different exclusions. Wind damage is covered by your homeowners or windstorm policy. Water damage from storm surge and flooding is covered only by flood insurance. And the line between wind and water — where one policy ends and another begins — is where billions of dollars in claims disputes happen.

This guide untangles the system, explains what you actually need, and provides state-specific guidance for the four most hurricane-exposed states.

The Wind/Flood Coverage Gap

This is the single most important concept in hurricane insurance, and the one that catches more homeowners off guard than anything else.

What [Homeowners Insurance](/blog/homeowners-insurance-complete-guide) Covers

Your standard HO-3 policy covers wind damage from hurricanes:

• Roof damage from wind
• Broken windows from wind-driven debris
• Structural damage from wind pressure
• Fallen trees from wind

What Homeowners Insurance Does NOT Cover

Your HO-3 policy excludes flood damage, which during a hurricane includes:

• Storm surge (ocean water pushed inland by the hurricane)
• Rising water from rainfall flooding
• Overflow of rivers, lakes, and streams
• Mudflow triggered by heavy rain

The Gray Zone: Wind-Driven Rain

Here's where it gets complicated. Wind-driven rain that enters through a hole in your roof created by wind is typically covered by homeowners insurance. But water that enters through intact windows or seeps in at ground level during a storm is considered flood damage — not covered.

Real scenario from Hurricane Ian (2022): A Fort Myers homeowner had $180,000 in total damage. Their insurer determined $95,000 was wind damage (covered under the homeowners policy, subject to a $15,000 hurricane deductible) and $85,000 was flood damage. The homeowner had no flood insurance. They received $80,000 from their homeowners policy and absorbed $100,000 in uninsured flood losses.

The lesson is stark: In a hurricane, you need both windstorm and flood coverage. One without the other leaves a potentially catastrophic gap.

Understanding Hurricane Deductibles

Hurricane and windstorm deductibles are unlike any other insurance deductible you encounter. They're larger, they're triggered differently, and they can catch homeowners off guard with five- and six-figure out-of-pocket costs.

Types of Hurricane Deductibles

The trigger matters enormously:

• A hurricane deductible only applies when the National Hurricane Center declares a hurricane. A tropical storm that causes identical damage would use your standard (lower) deductible.
• A named storm deductible applies to any named tropical system — tropical storms included. This captures more events.
• A wind/hail deductible applies to any wind or hail event, including non-tropical severe thunderstorms. This is the broadest trigger.

Percentage Deductible Math

Percentage deductibles are calculated against your Coverage A (dwelling) limit:

A 5% hurricane deductible on a $500,000 home means $25,000 out-of-pocket before insurance pays a dime. Many homeowners don't realize this until they file a claim.

Deductible Selection Strategy

Pro tip: Some states (notably Florida) allow you to choose between hurricane and non-hurricane deductibles for the same policy. You might carry a $2,500 all-other-perils deductible and a 5% hurricane deductible on the same policy.

Flood Insurance: The Essential Companion

Hurricane insurance without flood insurance is incomplete. Storm surge alone accounts for 49% of hurricane fatalities and billions in property damage.

NFIP vs. [Private Flood Insurance](/blog/flood-insurance-guide)

NFIP Risk Rating 2.0 (implemented 2021) fundamentally changed how federal flood insurance is priced. Instead of relying solely on flood zone maps, it factors in:

• Distance to water sources
• Flood frequency
• Flood type (river, coastal, rainfall)
• Rebuilding cost
• Property elevation

This made premiums more actuarially accurate but caused dramatic increases for some homeowners — particularly in coastal areas of Florida, Louisiana, and Texas where premiums jumped 200–400%.

Who Needs Flood Insurance?

State-Specific Hurricane Insurance Requirements

Each hurricane-prone state has unique insurance market structures, regulatory requirements, and available programs. Here's what you need to know for the four highest-risk states.

Florida

Florida is the most complex and expensive hurricane insurance market in the country.

Market overview:

• Average homeowners premium: $4,419/year (highest in the nation)
• Six insurers went insolvent in 2022
• Citizens Property Insurance (state insurer of last resort) covers 1.4+ million policies
• Many homeowners face $6,000–$12,000 annual premiums for modest homes

Key requirements and regulations:

• Hurricane deductible options: Florida law requires insurers to offer $500, 2%, 5%, and 10% hurricane deductibles. Homeowners must sign a form acknowledging they selected a percentage deductible if they chose one.
• Citizens Property Insurance: Available when you can't find coverage in the private market or when private market quotes exceed Citizens rates by a state-defined threshold. Citizens has been implementing "depopulation" programs to move policies back to private carriers.
• My Safe Florida Home Program: State-funded program providing free wind mitigation inspections and matching grants up to $10,000 for wind-resistant improvements (impact windows, roof upgrades, etc.).
• Roof age restrictions: Many Florida insurers won't write new policies for homes with roofs over 15 years old. Some won't cover roofs over 10 years old. A roof replacement ($15,000–$35,000) is often prerequisite to obtaining coverage.

Wind mitigation inspection: A $75–$150 inspection that documents your home's wind-resistant features. In Florida, this can reduce your windstorm premium by 20–60%. Every Florida homeowner should have a current wind mitigation inspection.

Florida-specific strategy:

1. Get a wind mitigation inspection before shopping for coverage
2. Consider a Citizens policy if private market quotes exceed $5,000
3. Carry separate flood insurance (storm surge is the primary flood risk)
4. Budget for roof replacement — it's the gateway to affordable coverage
5. Investigate My Safe Florida Home grants for wind mitigation improvements

Texas

Market overview:

• Average homeowners premium: $3,525/year
• Texas Windstorm Insurance Association (TWIA) covers coastal properties
• Inland properties have wind coverage in their standard homeowners policy
• Hail damage is a massive cost driver statewide

Key requirements and regulations:

• TWIA (Texas Windstorm Insurance Association): Properties in 14 first-tier coastal counties and parts of Harris County must get wind and hail coverage through TWIA if they can't obtain it in the private market. TWIA is essentially the wind/hail insurer of last resort for coastal Texas.
• WPI-8 Certificate: Required for TWIA coverage. This certificate confirms your home meets the Texas Department of Insurance windstorm building code. Homes built or renovated after certain dates must have a WPI-8 to be TWIA-eligible. Getting one requires a licensed inspector ($150–$500).
• Separate deductibles: Texas coastal homeowners often carry three deductibles: a standard all-perils deductible, a wind/hail deductible (from TWIA or their homeowners policy), and a flood deductible.

Texas-specific strategy:

1. Coastal properties: Obtain a WPI-8 certificate if you don't have one
2. Compare TWIA windstorm premiums with private market options (Foremost, Palomar)
3. Carry flood insurance — Galveston, Houston, and the entire Gulf coast are high storm surge risk
4. Consider a higher wind/hail deductible (5% vs. 2%) to reduce premiums — Texas hail claims are frequent but often moderate in severity
5. Impact-resistant roofing provides significant TWIA premium credits

Louisiana

Market overview:

• Average homeowners premium: $3,931/year (second highest nationally)
• Louisiana Citizens Property Insurance Corporation is the insurer of last resort
• Multiple insurer insolvencies post-Hurricane Ida (2021)
• Market is in crisis similar to Florida

Key requirements and regulations:

• Louisiana Citizens: Operates as the insurer of last resort. Unlike Florida Citizens, Louisiana Citizens policies are more expensive than most private market [alternatives](/blog/heloc-alternatives) by design — intended to encourage private market participation.
• Named storm deductible: Louisiana allows (and most insurers require) a separate named storm deductible for tropical storms and hurricanes. Typical options: 2% or 5% of dwelling coverage.
• Fortify Homes Program: Louisiana offers incentives for IBHS FORTIFIED roof designations. A FORTIFIED roof meets enhanced construction standards for wind resistance and can reduce premiums 15–30%.
• Elevation requirements: Post-Katrina building codes require new construction in flood-prone areas to be elevated. Elevated homes receive significantly lower flood insurance premiums.

Louisiana-specific strategy:

1. Prioritize a FORTIFIED roof designation when replacing your roof ($2,000–$5,000 above standard roofing cost)
2. Explore elevation grants through FEMA and state programs if in a flood zone
3. Compare Louisiana Citizens with available private carriers annually — the market is volatile
4. Carry maximum flood insurance — NFIP may not be sufficient for expensive homes; consider excess flood from a private carrier
5. Named storm deductible of 2% is worth the premium increase if you're in Southeast Louisiana

North Carolina

Market overview:

• Average homeowners premium: $2,100/year (moderate for a hurricane state)
• North Carolina Insurance Underwriting Association (NCIUA) / "Beach Plan" covers coastal wind
• NC has stricter rate regulation than most states, keeping premiums somewhat controlled

Key requirements and regulations:

• NC Beach Plan (NCIUA): Provides wind and hail coverage for properties in 18 coastal counties and the Outer Banks. Like TWIA in Texas, this is separate from your standard homeowners policy (which excludes wind in Beach Plan territories).
• Hurricane deductible: NC law allows hurricane deductibles of 1%, 2%, 5%, or 10%. The deductible applies only when the National Weather Service declares a hurricane. Tropical storms use the standard deductible.
• Mandatory offer of replacement cost: NC insurers must offer replacement cost coverage (not just ACV) on dwellings.
• Claim payment timelines: NC law requires insurers to pay or deny claims within 30 days of receiving proof of loss — stricter than most states.

North Carolina-specific strategy:

1. Beach Plan territory: Ensure your homeowners policy properly excludes wind (you don't want to pay for duplicate coverage)
2. Carry both Beach Plan wind coverage and a separate flood policy — the Outer Banks and coastal NC face both wind and storm surge
3. A 2% hurricane deductible is standard; consider 1% if your home is on the Outer Banks or barrier islands
4. Fort upgrade programs and FORTIFIED designations are gaining traction in NC — check with your insurer for available discounts

Building a Complete Hurricane Protection Plan

Coverage Checklist

• Homeowners/windstorm policy with adequate dwelling coverage (replacement cost)
• Hurricane/named storm deductible at a level you can afford (2–5% for most homeowners)
• Flood insurance — NFIP and/or private, with adequate dwelling AND contents limits
• Excess flood if your [home value](/blog/appraisal-process-explained) exceeds $250,000 (NFIP dwelling maximum)
• Loss of use / ALE coverage in both homeowners and flood policies (NFIP doesn't include it)
• Ordinance or law coverage (25–50% of Coverage A) for code upgrade costs during rebuild
• Water backup endorsement on your homeowners policy

Financial Preparedness Checklist

• Can you cover your hurricane deductible out of pocket? (Calculate it: dwelling coverage × deductible percentage)
• Do you have 2–3 months of living expenses available for displacement?
• Is your important documents (insurance policies, titles, IDs) stored in a waterproof container or digitally?
• Do you have a complete home inventory with photos/video stored in the cloud?

Physical Preparedness Checklist

• Roof inspected and in good condition? (Under 10 years for shingles, under 25 for metal)
• Impact windows or hurricane shutters installed?
• Trees trimmed away from the house (minimum 10 feet)?
• Garage door wind-rated or braced?
• Roof-to-wall connections verified (clips or wraps, not toe nails)?
• Water intrusion barriers in place (secondary water resistance on roof deck)?

Hurricane Insurance Cost-Saving Strategies

Even in the most expensive coastal markets, there are ways to manage costs:

1. Wind Mitigation Improvements

The single highest-ROI investment for coastal homeowners. Impact windows, hurricane shutters, roof upgrades, and structural reinforcements can reduce windstorm premiums 20–60%.

2. Higher Deductible with Emergency Fund

Choosing a 5% deductible over 2% can save $500–$2,000/year. Invest the premium savings in a dedicated emergency fund. After 3–5 years, you'll have enough to cover the higher deductible.

3. FORTIFIED Roof Designation

The Insurance Institute for Business & Home Safety (IBHS) FORTIFIED program certifies homes built or retrofitted to enhanced wind-resistance standards. Multiple states and insurers now offer meaningful discounts (10–30%) for FORTIFIED designations.

4. Shop Annually

The coastal insurance market is volatile. Carriers enter and exit, pricing changes dramatically year to year. Shop every renewal — not every 2–3 years like inland homeowners.

5. Consider Parametric Insurance as a Supplement

Parametric policies (like Jumpstart for earthquakes, or emerging wind-trigger products) pay a flat amount when a defined event occurs — no adjuster, no claims process. While not a replacement for traditional coverage, they can supplement your hurricane deductible or flood insurance gap.

Key Takeaways

1. There is no single "hurricane insurance" policy. You need wind coverage (homeowners or separate windstorm) AND flood coverage (NFIP or private) to be fully protected.

2. Hurricane deductibles are percentage-based. A 5% deductible on a $400,000 home is $20,000 out-of-pocket. Know your number and plan for it.

3. Flood damage is the uninsured gap. Most hurricane financial devastation comes from storm surge and flooding — which homeowners insurance explicitly excludes.

4. State programs exist but aren't always cheapest. TWIA, Citizens, Beach Plan — compare these with private market options every year.

5. Wind mitigation is the best investment. Nothing reduces premiums more than documented wind-resistant construction features. Get inspected.

6. The market is volatile. Coastal insurance pricing changes dramatically year to year. Shop at every renewal.

7. Prepare financially for the deductible. Having insurance doesn't mean you won't face significant out-of-pocket costs. A hurricane deductible fund should be part of your emergency savings.

Living in a hurricane-prone area doesn't mean you're at the mercy of the insurance market. Homeowners who understand the wind/flood split, optimize their deductibles, invest in mitigation, and shop aggressively can save thousands per year while maintaining robust protection. The key is treating hurricane preparedness as a year-round financial strategy — not just a checklist you pull out in June.

Related Articles

• Flood Insurance: Who Needs It, What It Covers, and What It Actually Costs
• Homeowners Insurance: The Complete Guide to Coverage, Costs, and Shopping Strategies
• [[Homeowners Insurance Guide 2026](/blog/homeowners-insurance-guide-2026): Coverage, Costs, and Tips](/blog/homeowners-insurance-guide-2026)