Hurricanes are a fact of life in The Bahamas. In 2019, Hurricane Dorian – a catastrophic Category 5 storm – pummeled the islands and caused about $3.4 billion in damages (roughly one-quarter of the nation’s GDP). It was the strongest hurricane on record to hit the country. Disasters like this highlight why comprehensive hurricane coverage is crucial for Bahamian homeowners. Having the right insurance means you can rebuild and recover financially even after the worst storms.
Major Hurricane Risks in The Bahamas
The Bahamas lies in the Atlantic “hurricane belt,” so it faces hurricane threats every year. Major hurricanes bring two primary dangers: wind and flooding. Wind gusts can rip off roofs and knock down walls, while storm surges and torrential rain can inundate entire communities. Much of the destruction from big storms comes from water damage – nearly 17% of Bahamian residents were left homeless after Hurricane Dorian when their homes were destroyed by wind and flood waters.
Without proper insurance, these hurricane impacts could spell financial ruin for homeowners. Hurricane coverage provides a vital safety net, so you aren’t left paying the full cost of recovery.
How Hurricane Coverage Protects Your Home
Hurricane coverage (usually part of a home insurance policy) helps pay for damage to your property caused by a storm’s high winds and rain. If hurricane-force winds tear shingles off your roof or flying debris breaks through a window, a homeowners policy with hurricane coverage will cover the repairs to your home (and even replace personal belongings) up to your policy limits.
However, it’s crucial to understand what hurricane insurance doesn’t cover. Standard home insurance covers hurricane wind damage but not flooding – even if the flood is caused by the hurricane’s storm surgekellerswan.com. To be protected from flood waters, you would need a separate flood insurance policy in addition to your homeowners insurance.
Ensuring You Have Adequate Storm Coverage
To ensure your coverage is adequate, follow these steps:
- Review your policy each year: Confirm that hurricane (windstorm) damage is covered; if flood coverage is not included, consider adding flood insurance.
- Know your hurricane deductible: Hurricane policies often have a special deductible – commonly 2–5% of your home’s insured value. For example, a 2% hurricane deductible on a $500,000 home means you must pay the first $10,000 of any hurricane claim. Be prepared for that out-of-pocket cost.
- Carry enough coverage: Make sure your coverage limits reflect the full cost to rebuild your home. If you underinsure the property, you could receive only a partial payout after a major disaster.
By taking these precautions, you can head into hurricane season confident that your insurance will cushion the financial blow of any storm. Indigo Insurance offers comprehensive hurricane coverage with clear terms and a smooth claims process, helping homeowners rebuild quickly after a storm.
Get a quote from Indigo today to storm-proof your Bahamas home this hurricane season.
Frequently Asked Questions
Is hurricane insurance mandatory in The Bahamas?
No. Hurricane insurance is not legally required in The Bahamas. However, lenders will require it if you have a mortgage, and due to the hurricane risk, it’s strongly recommended for all homeowners.
Does my home insurance cover hurricane flooding?
Standard homeowners insurance will cover hurricane wind damage, but it won’t cover flood damage from storm surge or heavy rainfall. Flooding is excluded and must be covered by a separate flood insurance policykellerswan.com. If a hurricane floods your home, that water damage would only be covered if you have a flood policy in addition to your home insurance.
What is a hurricane deductible?
A hurricane deductible is the portion of a storm damage claim you must pay out-of-pocket before insurance covers the rest. It’s usually a percentage of your insured home value (often around 2–5%). For example, a 2% hurricane deductible on a $300,000 home means you would pay the first $6,000 of repair costs, and your insurance would cover the remaining damage above that amount.
How can I prepare my insurance for hurricane season?
To get your insurance ready for hurricane season:
- Review your coverage: Make sure your policy includes hurricane (wind) coverage, and add flood insurance.
- Check deductibles and limits: Know your hurricane deductible and ensure your coverage limits are high enough to rebuild your home.
- Update your documents: Keep your insurance papers and an inventory of your home’s contents in a safe place.
When is hurricane season in The Bahamas?
The Atlantic hurricane season runs from June 1 through November 30 each year publicadjuster.com. Be sure to have your hurricane coverage in effect before the season begins, as insurers won’t issue new policies once a storm is imminent.