By David Clausen • Flood Insurance
Updated August 8th, 2025 • 7 min read
Avoid These Home Insurance Mistakes In 2025
As the 2025 Atlantic hurricane season ramps up, homeowners throughout the U.S., particularly in hurricane-prone coastal states, are once again confronted by the growing threat of stronger and stronger storms. Per the National Hurricane Center, 2025 hurricane frequency and intensiveness continue to increase, as long-term patterns related to climate change and warmer ocean temps continue to hold true. Indeed, NOAA’s latest seasonal forecast calls for an “above-normal” number of named hurricanes, hurricanes, and major hurricanes during 2025, exposing millions of homes to increased flood threat.
At Coastal Insurance Solutions, we have witnessed firsthand how small mishaps may have expensive repercussions. From overlooking updating insurance coverage to underestimating the time needed for evacuations, even seasoned homeowners make common errors.
If you live near the coast, or even several miles inland, now is the time to double-check your plan, review your coverage, and learn from the most common hurricane prep pitfalls. Below, we break down the top 6 hurricane season mistakes to avoid in 2025, and how to protect your home, your finances, and your family before the next storm hits.
1. Not Replacing or Repairing Your Roof
It’s no secret that hurricanes can damage roofs. Older or already damaged roofs are the most vulnerable when a wind storm rolls in. Homeowners are often lulled into a false sense of security because their roof doesn’t leak when it rains. However, high winds, flying branches, and debris seen with hurricanes put older or damaged roofs to the test, a test they often fail.
Many insurers now inspect roofs using drones or similar aerial imagery. Again, numbers are at the heart of it. Insurers know the claims associated with a worn roof can be much costlier than the cost of replacing the roof itself. This is also true for the homeowner because the homeowner pays a deductible for claims. Wind and hail claims often use a separate deductible. Hurricane claims also use a percentage-based deductible.
The costlier deductible for this type of claim, combined with the potential for increased premiums following a claim, makes replacing an older roof—before there is a claim—a more prudent choice. If your home has a 30-year roof, don’t wait until it’s 29.5 years old to consider replacement. Inspect your roof regularly and have a trusted contractor inspect inaccessible areas. The old saying, “The only way to be on time is to be early,” applies to roof replacement as well.
2. Choosing High Deductibles
Policy structures can vary slightly based on state or region. This is particularly true for deductibles. In simple terms, the deductible is the part of the claim paid by the insured. The deductible amount is ‘deducted’ from the claim settlement, making it an out-of-pocket expense for the homeowner if you have a loss.
Many insurers offer a fixed deductible for most claim types but use a percentage-based deductible for wind and hail claims as well as hurricane damage and damage caused by a named storm.
For example, you might have a $1,000 deductible for most claims but a 2%, 5%, or 10% deductible for wind, hail, or hurricane claims. A fixed deductible is easy to understand, but percentage-based deductibles are based on the rebuild cost of your home. The rebuild value creeps up over time as the cost of labor and materials increases. As a result, a higher deductible can be extremely costly if you have a loss.
For example, if your home has a rebuild value of $400,000, a 2% deductible means you’ll pay $8,000 of the claim. This structure, while expensive if you have a loss, is common. However, let’s consider a 5% deductible for the same home. Now, a loss results in a $20,000 out-of-pocket expense for the homeowner. A 10% deductible results in out-of-pocket costs that simply don’t fit the budget in some cases.
Review your deductibles with your agent to ensure that the numbers are realistic for your budget. In many cases, the premium savings may not justify the risk. Also, consider building a separate savings account to cover deductibles and other out-of-pocket expenses.
3. Not Enough Loss-of-Use Coverage
Loss-of-use coverage, also called additional living expense (ALE) coverage, is triggered if you have a physical damage claim that forces you to leave your home while repairs are completed. Following a hurricane, you might have a home with a fallen tree branch sitting in the living room or roof damage that allowed water to enter your home. In these situations, you’ll need to relocate temporarily while the insurer inspects and repairs the damage.
However, local building codes and the availability of materials can delay repairs. In addition, hurricanes cause damage throughout the affected region, which delays adjuster inspections and repair efforts.
The additional costs of hotels and eating out or renting a temporary space can add up quickly. Many policies use a default 10% ALE coverage. On a home with a $300,000 rebuild value, this means you’ll have $30,000 in coverage.
Discuss the loss-of-use premium costs with your agent. You might find that stepping up to a higher level of coverage fits your budget and is well worth the investment.
4. Mismatched Personal Property Coverage
When we think of hurricanes, we often think of roof, window, and siding damage. However, your belongings inside your home can also be at risk. The thing to consider in this case is the real value of your belongings and whether your policy reflects your coverage priorities.
In most households, personal property falls into two categories: valuables and used belongings. It often makes sense to insure valuables to their full replacement value, but your coverage for other personal property may not align with the true value. If many of the items in your home are older, you may be able to reduce your premiums by adjusting your coverage.
Personal property coverage typically uses a fixed percentage of your home’s rebuild value as a maximum coverage amount. In other words, it’s a largely arbitrary number. You also have a choice of replacement cost coverage or actual cash value coverage with many policies. The latter is more affordable because it pays based on a depreciated value based on age.
Talk to your agent to discuss your personal property coverage. You may be overinsured, or you may want to fine-tune your coverage to focus on the things most valuable to you. Often, the savings in one coverage area can pay for upgraded coverage in another area of your policy.
5. Not Adding Law and Ordinance Coverage
The dwelling coverage for your home is based on the cost of rebuilding your home from the ground up using like materials. Insurers use software to calculate the rebuild cost based on square footage, features, quality of materials, and local labor costs. What’s often unknown (until you have a loss) is which new building codes now apply. Your township or municipality may have enacted new building codes that can add to the rebuild cost of your home, a cost that isn’t reflected in your dwelling coverage amount.
Law and Ordinance coverage can boost your coverage amount, allowing it to expand up to an amount you choose if code compliance adds to the cost of rebuilding or repairing your home.
Review your Law and Ordinance coverage with your agent before hurricane season. Unexpected upgrades due to new building codes could cost thousands, particularly when repairing or rebuilding older homes.
6. Not Buying Flood Coverage
One of the largest risks from hurricanes centers on floods. We’ve all seen clips of flood waters rushing through streets and surrounding homes. Some of us have experienced the devastation floods can cause in person.
Average insurance claims amounts for floods are second only to fire claims, with the average flood loss reaching as high as $66,000 in some years. However, what many people don’t realize is that floods of this type are not covered by a standard home insurance policy. To protect against flood damage, you’ll need a separate policy.
FEMA and the National Flood Insurance Program (NFIP) use a specific definition for a flood when considering claims. In layman’s terms, you can think of a flood in this context as water that touches the ground before entering your home. By contrast, water damage from an inside source or caused by roof damage is covered by a standard policy in most cases.
Discuss your flood insurance needs with your agent. In many areas, private insurers have begun to offer flood policies or supplemental coverage for existing NFIP policies. In many cases, private insurers provide more cost-effective protection with fewer gaps compared to NFIP policies.
Review Your Policy Regularly With Your Agent
The best time to prepare your home for hurricane season is before it starts. While some aspects of preparedness center on maintaining the roof, siding, gutters, and nearby trees, it’s also essential to consider your coverage selections.
Most insurers recommend a full policy review with your agent once each year. Life changes, and our coverage needs often change as well. This periodic review gives you a chance to be sure your coverage meets your current needs and offers an opportunity to better prepare for the coming year.
Reach out to your agent to schedule a time for a review. The time invested in discussing your coverage could save you thousands if you have a covered loss.
FAQ: 2025 Hurricane Season Insurance & Preparedness
Does hurricane insurance include flood coverage?
No. Standard homeowners or hurricane insurance does not include flood coverage. Flood insurance must be purchased separately, either through the National Flood Insurance Program (NFIP) or a private flood insurance provider. At Coastal Insurance Solutions, we often recommend private options for faster claims, broader protection, and competitive pricing.
What is a windstorm deductible?
A windstorm or named storm deductible is a separate out-of-pocket cost that applies to damage caused by hurricanes or tropical storms. It’s typically calculated as a percentage of your dwelling coverage (e.g., 2% of a $500,000 home = $10,000). This deductible may apply before your standard homeowners insurance kicks in, especially in hurricane-prone states.
Can I buy insurance after a storm is forecast?
No. Once a storm is officially named by the National Hurricane Center, insurance companies often place a binding restriction or moratorium on issuing new policies or making changes to existing ones. It’s critical to secure or review your coverage early in hurricane season—preferably before June.
What if I live inland but still worry about flooding?
You’re not alone. FEMA reports that over 20% of flood claims come from low-to-moderate-risk zones. Hurricanes can cause flash flooding, river overflow, or backed-up drainage even dozens of miles from the coast. Flood insurance is strongly recommended, no matter where you live.
Will my policy cover evacuation costs or hotel stays?
If your home becomes uninhabitable due to covered damage (e.g., wind, fire, structural collapse), most policies include Loss of Use or Additional Living Expenses (ALE) coverage. This can help reimburse hotel stays, meals, and temporary relocation expenses. However, mandatory evacuations alone are not always covered—check with your agent to understand your limits.
How do I document damage after a storm?
Before the storm hits, create a digital home inventory using photos, videos, or an app like NAIC’s Home Inventory Tool. After the storm, take clear photos of all damage, don’t discard items until an adjuster sees them, and save receipts for emergency repairs or supplies. This speeds up the claims process significantly.
Are boats, cars, and outdoor structures covered?
Coverage varies:
– Boats require separate marine policies or boat insurance.
– Cars are not covered by homeowners insurance—only comprehensive auto insurance protects against storm damage.
– Outdoor structures like fences, sheds, and detached garages are often covered but may have sub-limits or exclusions for wind or flood damage.
Can I reduce my premium by storm-proofing my home?
Yes! Many insurers offer wind mitigation discounts for homes with features like:
– Impact-resistant windows and doors
– Hurricane-rated roofing systems
– Storm shutters or reinforced garage doors
– Roof tie-downs or secondary water barriers
Ask Coastal Insurance Solutions to review your current policy and inspect eligibility for discounts.
How can I tell if I’m in an evacuation zone?
Visit your state or county’s emergency management website or check tools like Ready.gov’s Evacuation Resources. You’ll often find color-coded maps or address lookup tools to determine your zone and route. Print or screenshot the info—you may lose internet access during a storm.
What’s the best time to review my insurance coverage?
The best time is before hurricane season begins—ideally in spring (March–May). If you’ve made home improvements, refinanced, or acquired valuables, update your coverage limits and endorsements to reflect your current risk exposure. Schedule a review annually with a Coastal Insurance advisor.
About the Author
David W. Clausen is the CEO of Coastal Insurance Solutions. With over 20 years' experience and over 1 billion insured, David and Coastal Insurance Solutions are the recognized leaders in high net worth insurance. For the fifth consecutive year, David Clausen has been awarded Top Producer by Insurance Business America. David is a trusted high net worth insurance expert who’s published more than 200 articles. His articles & press releases have generated over 500K pageviews and has been featured on blogs such as Google News, Yahoo Finance, CNBC, Market Watch, Fox, The New York Times, etc. David founded Coastal Insurance Solutions in 2001 after earning a BBA from the State University of New York College at Oswego.
