Major Differences Between Flood Insurance Claims & Hurricane/Windstorm Insurance Claims

Policyholders often confuse Flood Insurance Claims with Windstorm or Hurricane Insurance Claims. The damages covered and how the claims are handled are very different between Flood Insurance & Hurricane / Wind Insurance. Flood Insurance has a few standardized policies, whereas every Hurricane / Wind insurance policy is different. Each insurance policy must be carefully reviewed to understand how it works and what is covered.

Here are a few of the general differences between Flood and Hurricane / Wind policies:

Flood Insurance

• Flood Insurance is a special program managed by the Federal Emergency Management Agency (FEMA)
• Flood is defined as the overflow of inland or tidal waters, or the rapid accumulation of surface water from other sources (i.e. rain)
• Flood policies are very restrictive in nature, subject to the rules and regulations of National Flood Insurance Program (managed by FEMA)
• Flood insurance is not intended to make you whole after a Hurricane and only applies to damage caused by flood water
• Flood policies MAY or MAY NOT cover additional living expenses
• There are no attorney’s fees to recover when suing the Federal Government, which means you will be responsible for the costs of a lawyer if necessary
• Appraisal is a particular form of dispute resolution that is often ignored and not accepted by FEMA

Download the FEMA Claims Handbook

Hurricane / Wind Insurance

• Hurricane / Wind Insurance is purchased and run through private insurance carriers and will be required if you have a mortgage
• Hurricane / Wind Insurance generally covers direct damage resulting from a named Hurricane or Tropical Storm
• Interior damage MAY only be covered if water enters your property through an opening created by the storm
• Hurricane / Wind Insurance policies are generally not as restrictive as Flood policies, but it depends on what coverage was purchased
• Hurricane / Wind Insurance excludes coverage for damage caused by flood water
• Hurricane / Wind Insurance is intended to make you whole after your hurricane deductible is applied
• In Florida there are statutory attorney’s fee provisions that may allow the consumer to recover the costs of a lawyer if necessary
• Appraisal as a form of dispute resolution that may be allowed depending on the particular insurance policy