Hurricanes: Homeowners should seek financial shelter
By Bankrate.com

Are you ready for a hurricane? While forecasters make predictions on this season's storms, homeowners need to figure out how to protect themselves.

While a standard homeowners policy typically covers tornado damage, people living in certain coastal areas along the Gulf of Mexico or the Atlantic Ocean should be aware they may need additional "windstorm'' protection for hurricanes and general hurricane damage.

The states of Florida, Mississippi, Texas, Alabama, Louisiana, and North and South Carolina all have some form of windstorm protection in place, says Ruth Gastel, a spokeswoman for the Insurance Information Institute. Residents there can buy insurance from state plans or through other special arrangements because individual companies have the right to opt out of covering such damage in high-risk areas.

The cost varies widely depending on location, from less than $200 to over $2,000.

Coastal residents also need flood insurance, which means they could find themselves spending more than $1,000 annually on premiums to guard against nature.

The problem? Hurricane Andrew in 1992.  At the time, it was the worst natural disaster in U.S. history as measured by damage claims, which totaled $15.5 billion. That led insurance companies to seek ways to protect themselves against excessive losses.

Homeowners should check with their state's Department of Insurance or a comparable agency for specific details on what types of coverage insurance companies are required to provide in their state.