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What does hurricane coverage exclude?

On Behalf of | Mar 15, 2021 | Firm News |

A hurricane could bring forth enormous property damage, which is why home and business owners invest in applicable insurance. Louisiana remains a state that faces risks of hurricane catastrophes. So, many residents choose to purchase insurance that covers hurricane losses. However, assuming that any policy will cover all losses could turn out to be a disastrous mistake. Policyholders must determine what is and isn’t covered long before filing any claims.

Coverage for losses

Different policies present individual coverage provisions. Homeowners’ insurance could cover wind damage and losses related to leaks. Floods, however, require flood insurance unless the homeowners’ policy covers floods. Separate sewer backup coverage might be necessary, as well.

Businesses may file claims for physical property damage and, possibly, other expenses. The additional costs might include business interruption dealing with revenue disruption claims.

Ultimately, policyholders must review their insurance contracts to determine what coverage is in place. A policyholder can’t file a claim against an excluded peril.

Exclusions and limitations

If the policy states it won’t cover losses to a home the owner left unoccupied for 60 days, filing a claim for a hurricane that occurred on the 64th day may lead to a denial. Insurance contracts commonly detail exclusions in clear terms, so reviewing a contract thoroughly seems wise. Perhaps the review may lead to purchasing additional insurance to expand coverage.

Policies might come with deductibles, which involve the insured paying out of pocket. Wind damage could come with a significant deductible, something that might catch a policyholder by surprise. Again, reviewing terms is essential.

Personal injury issues could arise. A personal injury suit could follow if a homeowner the wind carried objects cluttering a yard and injured someone. The insurer may try to avoid paying on such a claim. In such disputes, a policyholder may need to consult with an attorney.