If your home is located in a hurricane-prone area, homeowners insurance covers some of the damage in the event that disaster strikes. But in order to know if you have adequate coverage to repair or replace your home, there are numerous factors to consider.

Although a standard home insurance policy usually covers damage that results from a hurricane's high winds, damage caused by floodwaters isn't covered. For that, you need flood insurance. However, damage from rain may be covered if strong hurricane winds blow off your roof, allowing heavy rain to get into your home, causing damage to ceilings, walls, floors, and personal property.

Rainwater damage may also be covered if hurricane winds hurl debris through a large window or glass doors, allowing rain to enter. Despite having coverage, your insurer will expect you to take measures to prevent more rainwater from getting inside your home and causing even more damage.

Hurricane Deductible

Even if wind damage from a hurricane is a covered peril, it's important to know the details of your policy. While deductibles vary by insurance company and state, some policies include a separate hurricane deductible that may be more than the standard deductible amount on your home insurance policy. When deductibles apply, the amount is deducted from what the insurance company pays you on your claim.

If you live in an area where hurricanes occur, rather than a specified dollar amount, the deductible you pay may be calculated as a percentage of your home's insured value, which can range from 1 to 10 percent. Percentage deductibles are often required in certain regions of the U.S., particularly if your home is located in a high-risk coastal area.

State insurance laws vary, but whether or not you must pay a hurricane deductible when you file a claim depends on whether the damage or loss is due to a named hurricane or tropical storm. If your home insurance policy offers set dollar deductibles, raising the amount of your deductible above the minimum dollar deductible an insurer offers can reduce the cost of your insurance premiums.

Coverage Limits

Coverage limits may also apply. The limit is the maximum amount your insurance company will pay you for a covered loss for which you file a claim. Although you'll pay more for a higher coverage limit, you need to consider how much it would cost to rebuild your home at current construction costs for the area where you live. Home building costs per square foot depend on the size of the home, architectural style, availability of building materials, and labor costs.

Coverage for Damage

Not all standard home insurance policies cover damage or loss caused by hurricanes. But that doesn't necessarily mean your home is unprotected. If your home insurance policy doesn't cover damage or loss related to direct wind damage, you may be able to purchase additional coverage by adding an endorsement to your existing policy.

You may also have coverage for hurricane-related damage or loss under your standard policy depending on how the damage occurred. If damage is caused indirectly by hurricane force winds that lead to another peril for which you have coverage, then your insurance company may pay the claim. For instance, your policy may cover if hurricane winds cause downed power lines or sparking in electrical wires that leads to a home fire, which is a covered peril.

All-Risk Policy

Unlike standard home insurance policies that cover only the perils named in the policy, an all-risk policy provides coverage for any peril that can cause damage unless the policy specifically excludes it. All-risk coverage is more expensive than a named perils policy but may be worth the cost if you live in an area at high risk of hurricane winds. Similar to a named perils policy, some all-risk policies exclude floods and earthquakes for which you need special policies.

For answers to your questions about home insurance, contact the the insurance representatives at American Quality Assurance Group.