Those in search of cheap hurricane insurance will find their options limited by due to the strong storms that hit the Gulf of Mexico during the 2005 hurricane season. Though Florida and Louisiana were the hardest hit, Texans are still facing repercussions from the storms with many insurers pulling out and not renewing policies. AllState, for example, is no longer writing new policies in 14 Texas counties. There are, however, still options for those looking for insurance that won’t break the bank or leave you high and dry. You just have to know what to look for.

Basic Policies

Cheap can be a bit of a relative term when shopping for hurricane insurance in high risk areas. Rising real estate costs and increased construction along coastlines have driven up the cost of any kind of policy. The most basic homeowner policies will cover damage done by hurricanes. Of course, this damage is generally limited to what is done by the winds associated with the storm, leaving those with homes destroyed by floodwaters or waves without any coverage at all. This has been a particular point of contention for many homeowners who made claims with insurers in the wake of hurricane Katrina.

Many policies sold in high risk areas will have accompanying high deductibles. Generally, the higher your deductible, the cheaper your premiums, so it’s up to you to determine what kind of risk you’re willing to take with your insurance for cheaper rates up front. Often, these deductibles are hurricane-specific, meaning they’re not related to your other coverage, and aren’t always disclosed up front, so make sure to ask when purchasing a new policy. New deductibles can run as high as 10% of your home’s value, passing the burden of rebuilding on to you, instead of the insurance company.

It’s important to find out just what your policy covers before it becomes an issue you’ll have to deal with in reality. Most basic hurricane policies cover wind damage, resulting fire or vandalism, debris removal and repairs, and cash or replacement value of damaged property. Some policies will also cover additional living expenses if your home is rendered unlivable and you have to take up residence in a hotel, but many do not, and it’s always a good idea to check before getting stuck with a large hotel bill. You should also find out what the limits are on up front replacement costs if your home is destroyed, otherwise you could be out of a home for an extended period while you find the financial resources to cover the repairs.

Additional Flood Insurance

Because most policies won’t cover your home in the event it’s destroyed by storm surge or flooding, you’ll need to find additional flood insurance if you want to be fully covered for hurricanes. The US government offers coverage through The National Flood Insurance Program, but those in the highest risk areas may not be eligible and those with high value properties won’t be fully covered, as policies are limited to $250,000.

Flood insurance policies, just like any others, should be checked to see just what it is they cover. Most should cover damage done from storm surge and environmental flooding, but if you want additional coverage to help clean up moisture damage like mold, it’s likely to be at an additional cost. Flood insurance will usually pay out to repair or replace the structure of your home and everything in it, but most policies don’t include provisions for paying for an alternate residence. If you feel this will be an issue, get additional insurance or prepare to pay the costs out of pocket.

Texas-Specific Issues

The state of Texas provides windstorm insurance for those whose insurance has been discontinued or dropped by an insurer. Those left out in the cold by an insurer can purchase hurricane coverage through the Texas Windstorm Association, though these policies do not cover damage done by fire or theft. Additionally, those not able to obtain insurance from other private carriers can apply for a FAIR plan, which will provide hurricane insurance as well as traditional home insurance. These may be last resort coverages, but they can also be more inexpensive than privately funded insurance policies.

With the damage from Katrina and Rita, Texas has faced a bit of an insurance crisis, with insurers pulling out and leaving, making hurricane insurance hard to come by in risky areas. You can increase your chances of getting reasonably priced insurance by making use of the state’s Windstorm Inspection Program. This program encourages buildings be retrofitted or constructed with hurricane resistant materials. It can be a good investment, as it can get you insured as well as make your home safer in general.

Though Texas wasn’t nearly as hard hit by the violent storms of 2005 as Florida and Louisiana, the devastation was enough to create instability in the insurance market. Good insurance isn’t impossible to come by, even with pullouts and rate hikes. Learn what your hurricane risk is, your rights as a consumer, and what kind of coverage you need, and there’s bound to be something out there that will work for you.