What does hurricane insurance cover in Sint Maarten: wind, flood or storm surge?

Key facts

What is the difference between wind, rain, flood and storm surge?

They are different ways a storm damages property, and insurers may treat them differently. The National Hurricane Center describes hurricane-force winds as 74 mph or more, which can destroy buildings. It describes storm surge as an abnormal rise of water generated by a storm, over and above the predicted tide. Intense rainfall can cause flash flooding, which NHC defines as a rapid rise in water levels. Which of these your policy pays for depends on its wording, not on the cause being a hurricane.

How do deductibles work after a hurricane?

A deductible is the part of a covered loss that you pay yourself, and the insurer pays the rest up to the limit. Some policies use a fixed amount for ordinary losses and a separate named-storm deductible for a named storm, often a percentage of the sum insured. A percentage can be much larger in dollars than a fixed amount, so ask for it as a figure. As an illustration only, not a quote: if a property is insured for $200,000 and the named-storm deductible is 2% of the sum insured, the first $4,000 of a covered storm loss is yours to pay. Ask your insurer for the real figure. The deductibles article explains the idea in more detail.

What is usually excluded or limited?

The wording decides, but these are points that people often find limited or excluded, and so are worth checking:

• Flood or storm surge, if not listed as covered.
• Wear and tear, poor maintenance and damage that was there before the storm.
• Outdoor items such as fences, pools, docks, awnings, signs and landscaping.
• Contents in a garden, on a balcony or in a boat or vehicle.
• Income lost while a business is closed, unless an extension was bought.
• Losses where a condition was not met, for example about shutters, mooring or haul-out.

When is the right time to review hurricane cover?

Before the season, because insurers may restrict changes when a named storm is forecast. The Atlantic hurricane season runs from June 1 to November 30, according to the National Hurricane Center. A review before June is a practical step: check the sum insured against current rebuilding costs, the deductible against what you could pay, and the exclusions against the property you own. The hurricane season preparation checklist covers the practical side.

What should a landlord, renter or business owner check?

Each has a different interest. A homeowner insures the building and contents. A renter usually insures their own contents and liability, while the landlord insures the building. A business owner also has stock, equipment and lost income to think about. The homeowners and renters, property and marine insurance pages describe each, and the hurricane insurance page covers the main terms.