Hurricanes bring strong winds, storm surge, heavy rain flooding, and often even tornadoes. These storms can cost people and businesses huge amounts in damage. This article shows what kinds of insurance you need, how deductibles work, how to avoid surprise costs, and how a lawyer can help after a hurricane.
You will find out:
- The different policies that cover wind, water, and business loss
- How hurricane‑related deductibles differ from standard ones
- Practical steps to make sure you are ready before a storm
Understanding “Hurricane Insurance”
Instead of one policy, hurricanes are covered by several different types of insurance. These include coverage for wind damage, flooding, and business shutdowns. Many property owners think their regular insurance covers all of this, but that’s usually not the case.
- Different perils need different types of insurance.
- Policy wording and property location affect coverage.
- Having multiple policies gives better protection.
Commercial Property Insurance
Commercial property insurance usually pays for damage to your building, what is inside it, and damage from things like fire, theft, or some weather. But many policies do not cover flood or storm surge damage and may not fully cover wind or hail. If your business is in a hurricane-prone area, it’s important to read your policy closely.
- Coverage might be less in coastal or flood‑risk areas.
- You may need riders or endorsements for full hurricane protection.
- Contents (equipment, inventory) may need separate coverage.
Windstorm and Wind Damage Coverage
Strong winds can break windows, damage roofs, knock down signs, and cause big problems for buildings. In states like Texas, Florida, and Louisiana, regular business insurance often does not pay for wind damage, especially near the coast.
In Texas, some businesses near the coast can get windstorm insurance from the Texas Windstorm Insurance Association (TWIA). TWIA is a group supported by the state. It covers wind and hail damage in 14 coastal counties and parts of Harris County. Sometimes, you must get TWIA insurance if private insurance does not cover wind damage.
In places near the coast where storms are strong, you must have windstorm insurance. It is the only way to protect your property from the most common and expensive hurricane damage.
Flood and Water Damage Insurance
Flooding is one of the worst things a hurricane can do. Big waves, heavy rain, and blocked drains can cause a lot of water damage. Regular business insurance usually does not cover flood damage. That is why it is very important to get flood insurance, especially in places where hurricanes happen a lot.
Most people can buy flood insurance from a program called the National Flood Insurance Program (NFIP). Some private companies, like The Hartford, also sell flood insurance. Their plans might cover more, pay more money, or start faster. Private flood insurance can help businesses with expensive buildings or those just outside flood areas.
More than 20% of flood claims come from properties outside high-risk flood zones.
Many business owners think their regular insurance covers flood damage, but it usually does not. After storms like Hurricane Harvey, many Texas businesses learned too late that their insurance did not cover flooding—especially those far from the coast or outside flood zones.
Business Interruption Insurance
After a hurricane, businesses often have to close for some time. Even then, they still need to pay rent, workers, loans, and other bills. Business interruption insurance helps pay for lost money and costs while the business is closed because of damage.
- It protects against income loss while repairs happen.
- Without this coverage, expenses can quickly drain your funds.
- You must show the damage prevented operation and isn’t because of other policy exclusions.
Hurricane-Related Deductibles Explained
Hurricane deductibles are not the same as regular ones and are usually higher. They only apply when certain storms happen, and are often a percent of the property’s value.
There are three main types:
- Windstorm Deductibles – Apply to damage from wind, hail, and tornadoes.
- Named Storm Deductibles – Triggered when a storm is officially named.
- Hurricane Deductibles – Apply only when a storm reaches hurricane strength.
Hurricane deductibles are usually between 1% and 5% of the property’s value. For example, if a building is worth $2 million and has a 3% deductible, the owner must pay $60,000 before insurance helps.
- Some apply once per storm; others once per season.
- Deductibles may be flat amounts or percentages—check your policy.
- Understanding your deductible helps prevent surprises after a storm.
The best way to know your deductible is to read your insurance policy carefully, especially for storms with names and hurricanes.
Hurricanes can cause serious damage to your business that might be hard to fix. It’s important to understand what kinds of damage to expect and what steps you’ll need to take to recover. Knowing this can help you prepare and protect your business better after a storm.
Why Legal Help Matters
Hurricane insurance claims are often hard to handle because insurance companies may deny, delay, or pay less than they should. This usually happens because the policy language is confusing or the insurer uses tactics to avoid paying fully. Having an experienced attorney can help you understand your coverage, fight unfair decisions, and get the full amount you deserve.
At Raizner Slania, our team is highly skilled in handling complex commercial property damage cases. If your business has suffered hurricane damage and your insurer isn’t cooperating, contact us today for a consultation.