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Do You Need Hurricane Insurance By Saen Higgins
If you live or own real estate in hurricane prone regions, you may or may not need a separate policy that covers hurricane damage. I wish real estate investing could be black and white, but just like so many other topics today’s has some grey areas. Typically a homeowners insurance policy will cover wind and wind driven rain damage (sometimes called ‘top down’ damage). But it is rare for a policy to also cover flood or storm surge damage (‘bottom up’ damage).
Hurricanes can cause a lot of flooding by raising tides and saturating the land, which can affect homes inland for miles. If you think your property is at risk of flood damage due to hurricanes or other storms, speak with your insurance policy holder as soon as possible about additional coverage. Flood coverage can take considerable time to take effect so don’t wait until a storm is on the horizon.
Take a moment to read your insurance policy and make sure that wind damage and wind driven rain damage is covered. While I did say this is typically covered, you never want to assume a policy covers anything; always confirm. If it is in fact excluded from the policy then you’ll need additional coverage, yet another reason to get on the phone with your policy holder as soon as possible.
The cost of hurricane damage can range from minor to extremely costly; there are ways to potentially reduce the cost of repairs (and the insurance premiums) by making a few improvements to the home. To name a few possibilities: storm shutters, impact resistant garage doors, and wind resistant shingles.
While making improvements can be costly, if you’re planning a rehab regardless it’s worth considering spending a bit extra to help protect the home… not to mention if you plan on listing it soon it will be more attractive in a market recently affected by storms.
Saen Higgins is the Co-Founder of US Tax Lien Association. He is one of the word’s foremost authorities on the subject of investing in Tax Lien Certificates and Tax Foreclosed Properties. He has been training and speaking internationally for over 25 years. Saen is passionate about sharing his philosophies on real estate investment and creating financial freedom. His extensive knowledge in the field of self-directed retirement accounts has changed the quality of life for thousands and the way they invest. Saen’s devotion to helping people creates true financial independence and is only matched by his business partner, Tony Martinez.