Hurricane Insurance Rates

Oceanic view has always been the main attraction for people to have a residence nearby. The calm waves of the sea, the warm breeze, and all the natural luxury add to the beauty to allure people to stay put. However, hurricane Katrina has changed people’s mind about the beauty of living by the sea, and all were replaced with fear. To make matters worse, the severe hurricane has made hurricane insurance too costly to afford. The rates have risen by 100% or even it could be 200%. People living in the areas prone to disaster are in misery with the rocketing premium of Hurricane Insurance Rates.

The situation is worsened by the fact that the insurance rates for hurricane are a great deal higher than the rates for houses located on inlands. As an illustration, Florida’s hurricane homeowner insurance rates drastically rose and people easily backed out of real estate quickly. Another example is Mississippi where an increase of insurance rates was proposed by 397% for the homes with privilege, which then was reduced to 90%. However, there must be a schedule of rising price in the future.

One way or the other, Hurricane Insurance Rates are supposed be understood considering that the disaster may leave nothing for the homeowners. By having hurricane insurance, you can live your life comfortably. The rates for a home which is still newly constructed are different from an older home. The new home is assumed to be able to withstand winds and the older one is subject to destruction.

If you have hurricane mitigation improvements namely secondary water protection which is an additional layer of water proofing system between shingles and storm shutters, then the Hurricane Insurance Rates can be lower. Take Florida as an example where the annual premium of an old house that is insured for $150,000 falls anywhere between $3,000 and $8,000 with the assumption that there is no mitigation improvements plus a 2% hurricane deductible. However, if there is a mitigation improvement, the house’s insurance rate would only be $1,000 up to $3,500.

Since damages caused by flood are not covered in Hurricane Insurance Rates, homeowners are supposed to consider a separate flood insurance policy. Even if your house is only an inch away from the flood water, the damage can cost you $7,800. By having flood insurance policy, the National Flood Insurance Program points out that homeowners will sufficiently pay $540 annually.