The Southeast is still cleaning up from last year's Hurricanes Helene and Milton, and the 2025 hurricane season is already underway.
Now is the time for homeowners to review their insurance policies, according to Mark Friedlander, Insurance Information Institute spokesman. “The beginning of the season is the time to prepare. This is financial preparation.”
The National Oceanic and Atmospheric Administration has predicted that 2025 will be a busier-than-usual hurricane season. Their models suggest a 60% chance of above-average activity.
The agency forecasts between 13 and 19 named storms that reach sustained winds of more than 39 mph. Up to 10 of those are forecast to reach hurricane strength (winds of 74 mph or higher), with three to five hitting at least a Category 3 (with winds of 111 mph or more).
Check for coverage gaps
Insurance companies will not let homeowners change their policies once storms hit, so Friedlander recommended finding the trouble spots early. It's important to know what’s covered and what will come out of pocket.
“We recommend for all consumers to do an annual checkup with your agent,” Friedlander said. This means placing a call or accessing an online chat to review your coverage, deductibles and limits.
The biggest gap people have is typically in the replacement cost coverage, sometimes known as "dwelling coverage," Friedlander said.
Replacement costs rose 55% between 2020 and 2023, according to the institute. “Because of inflationary trends, we have seen many people’s coverage is not up to date,” he said.
Friedlander said this was a major issue for homeowners during the Los Angeles wildfires.
“Some policies automatically update every year,” he said, “but you don’t want to find out after a hurricane that you weren’t covered enough.”
Don't forget the deductibles
Wind coverage usually carries a deductible of up to 5% of a home’s value, according to Friedlander. For a $500,000 home, that means $25,000 out of pocket for repairs.
“A lot of times, the damage would be less than the deductible,” Friedlander said of hurricane-hit homes.
Floods can happen anywhere
The next crucial step, according to Friedlander, is to make sure you have flood insurance. And before you think you’re too inland for it to matter, remember that nearly 4,000 homes were destroyed or suffered major damage from Hurricane Helene in mountainous Asheville, North Carolina, according to the institute.
“If people live inland, they think they’re immune to flooding, but it can hit anywhere,” he said.
What many people, even in hurricane-prone states such as Florida, often don’t realize is that flooding is not covered under a typical homeowner’s policy. It must be added as a separate policy.
The government offers subsidized insurance for people in flood zones under the National Flood Insurance Program. However, coverage is still available from private carriers even if you don't live in a high-risk area.
“And the good news is, if you live in a lower-risk area, your cost is very reasonable,” Friedlander said, about $40 to $50 per month.
He pointed out that 90% of natural disasters include flood damage. In February, the Federal Emergency Management Agency announced it had borrowed more than $2 billion to pay flood claims for Helene and Milton.
And storms are reportedly dropping more water. A study by Stony Brook University and the Lawrence Berkeley National Laboratory indicated that climate change was responsible for a 10% increase in rainfall from Hurricane Ian in 2022.
“They’re becoming wetter events,” Friedlander said.
Act quickly, he said, because flood insurance typically takes 30 days to go into effect.
Your car is at risk, too
In Hurricane Ian, more than 100,000 cars were destroyed by flooding, according to the institute.
Comprehensive coverage is required to replace a car destroyed by a natural disaster. A typical accident liability policy does not cover it.
“They can add that on instantly,” Friedlander said.
Be prepared. Even a storm without a name can do major damage.