Shelter from a Storm

By Sharon Epperson

The damage wreaked by Hurricane Charley on homes, businesses and personal property is expected to reach $7.4 billion, the worst toll since Hurricane Andrew in 1992, according to the Insurance Information Institute. The destruction serves as a reminder to homeowners to check whether their insurance will protect their property when disaster strikes. Especially if you live near the coast or another body of water, you may need several different policies to make sure your property is adequately insured. Among them:

BASIC HOME INSURANCE Windstorms are generally covered in basic homeowner policies. But you may want to tuck away some extra cash just in case, because if a hurricane hits, your deductible could be higher than you expect. In coastal areas prone to high wind exposure, your deductible may be based on a percentage of your home's value, usually 1% to 5%, instead of a flat $500 or $1,000 deductible. So, for example, if you have insured a $300,000 house that has a 2% deductible up front for any qualifying wind event, your out-of-pocket expenses would come to $6,000.

WIND AND HAIL POLICY In regions at high risk for severe wind and hail, insurance companies often exclude coverage for windstorm-related losses from homeowner policies. Don't despair: you can still insure your home. Several states, including Alabama, Florida, Louisiana, Mississippi, Texas, North Carolina and South Carolina, have set up a special state-run windstorm pool to fund policies.

FLOOD INSURANCE Standard home-insurance policies don't cover flooding, but the federal government does through the National Flood Insurance Program. Coastal residents aren't the only property owners who may face floods. "In fact, 25% of all claims that are paid after a flood are in areas that are not designated high risk for flooding," says Jeanne Salvatore of the Insurance Information Institute.

You may also want to get excess coverage, such as a personal-articles policy, to insure valuable possessions. Make sure you keep your insurance documents in a safe place outside your home in case a disaster hits. And if you have to evacuate, remember to take the name and number of your insurance agent with you.

Sharon Epperson is CNBC's personal-finance correspondent