Living in South Florida means we know the rhythm of hurricane season—stocking up on batteries and bottled water, checking the generator, and hoping each tropical wave keeps spinning harmlessly offshore. But there’s one kind of preparation that can’t wait until a storm is brewing: your insurance coverage.
Once the National Weather Service issues a tropical storm or hurricane watch or warning for any part of Florida, most insurers suspend the issuance of new policies and coverage increases. That generally means you can’t raise your coverage limits, lower your deductibles, or add new protection until the storm has passed. These “binding suspensions” are standard practice for Florida insurers and often happen several days before landfall.
This blog provides practical tips to help you review your insurance coverage before hurricane season peaks. That way, you’re not caught off guard when the next storm approaches.
What Standard Homeowner’s Insurance Does—and Doesn’t—Cover
Most homeowner’s policies cover wind damage (subject to your deductible) but not flooding.
Flooding—from storm surge, heavy rain, or rising water—requires a separate flood policy, either through the National Flood Insurance Program (NFIP) or a private insurer.
Florida’s Hurricane Deductible: Know Your Number
Florida has a special deductible for hurricanes, and it’s different from your regular deductible. State law requires insurers to offer options of $500, 2%, 5%, or 10% of your home’s insured value.
That percentage can result in a significant out-of-pocket cost when a storm hits. For example, on a $500,000 home, a 2%–5% hurricane deductible equals $10,000–$25,000 that you would have to pay before insurance coverage begins.
Also, remember that the hurricane deductible applies when the National Weather Service has issued a hurricane warning for any part of Florida. It ends 72 hours after the last watch or warning is lifted.
Make sure you know exactly what your policy says and that you can afford the deductible you’ve chosen.
Flood Insurance: Don’t Wait
If you need flood coverage, don’t wait until the forecast gets exciting. NFIP flood insurance generally has a 30-day waiting period before it goes into effect, unless you’re buying it as part of a new mortgage or another limited exception applies.
Because flood damage is not covered under most homeowner’s policies, this coverage is essential in South Florida, where heavy rain and storm surge can cause significant losses even outside designated flood zones.
Cars and Hurricanes
If your car is parked outside, ensure that your auto policy includes comprehensive coverage.
This type of protection covers damage from flooding, wind, and falling objects—like tree branches or debris—minus your deductible.
Collision coverage alone won’t help if your car is flooded or damaged in a storm.
Consider Umbrella (Liability) Coverage
An umbrella policy provides an extra layer of liability protection above your homeowner’s and auto insurance. It’s designed to cover large claims and lawsuits once your underlying policy limits have been exhausted.
If you’re found legally responsible for property damage or injury—for example, a tree on your property damages a neighbor’s home—an umbrella policy can step in to cover costs that exceed your standard limits.
Other Smart Financial Steps Before Hurricane Season
Insurance is just one part of financial preparedness. These additional steps can make recovery smoother if a storm strikes:
Update your home inventory. Walk through your house with your phone and record each room, closet, and valuable item. Store those files in the cloud and a waterproof container. A current inventory can facilitate faster and more accurate insurance claims.
Protect important documents. Keep copies of IDs, insurance policies, deeds, and financial records in a waterproof and fire-resistant container, and store digital backups securely online.
Review your rebuilding coverage. Construction and rebuilding costs have risen in recent years and remain elevated. Make sure your dwelling coverage reflects current reconstruction costs in the Fort Lauderdale–Miami area.
Maintain an emergency fund. Even with good insurance, it can take time to receive payments. Florida insurers generally have up to 60 days to pay or deny a claim, and temporary expenses can add up quickly. A cash cushion helps bridge the gap for repairs, lodging, or deductibles.
The Bottom Line
In South Florida, timing matters. Once watches or warnings go up, it’s generally too late to make changes to your insurance coverage. The best time to review your policies is before hurricane season ramps up—ideally in the spring, long before the first storm forms in the Atlantic.
Take an hour to look over your coverage limits, deductibles, and exclusions. Ask yourself:
Can I afford my hurricane deductible?
Do I have flood coverage?
Would my current policy cover rebuilding at today’s costs?
If any of those questions give you pause, we recommend a review.
At Northstar Financial Planners, we help clients integrate risk management into their overall financial strategy—objectively and without commissions. As fiduciaries, we advise clients on how to protect themselves, including reviewing insurance policies and making recommendations. Because when hurricane season arrives, the goal isn’t just to safeguard your property—it’s to protect your financial stability and peace of mind.
Schedule a chat with a fee-only, fiduciary financial advisor.
This material was written in collaboration with artificial intelligence (ChatGPT) derived from sources believed to be accurate. This information should not be construed as investment, tax, or legal advice.