Although early forecasts suggest the 2026 hurricane season may be below historical averages, the risk of severe storms remains significant. Even relatively quiet seasons can produce major (Category 3+) hurricanes that make landfall along the Atlantic coast.

Forecasts illustrate this continued exposure. Colorado State University projects 13 named storms, including six hurricanes—two of which may reach major strength—while AccuWeather expects three to five storms to directly impact the United States. Storms that make landfall typically drive the most significant losses, with the average economic loss for a Category 3+ storm ranging from $50 billion to $200 billion. Importantly, because of uninsured flood risks and storm surge differences, insured losses generally capture only a fraction of the total economic toll.

Against this backdrop, proactive insurance planning is critical. Securing a well-structured program with appropriate limits, sublimits, and endorsements before a storm strikes can materially impact recovery. Inadequate coverage can leave policyholders exposed to denied or underpaid claims, while a properly structured program can help ensure full recovery and business continuity following a major loss.

Below are five policy pitfalls to avoid that could severely impact recovery following a hurricane and three key steps to take if and when a storm disaster strikes your home or your business. 

Common Insurance Policy Pitfalls to Avoid or Mitigate Before a Tropical Storm Makes Landfall

Consider the following potential policy issues when reviewing your current insurance program to ensure you are prepared for a hurricane.

1. Available Coverages.

Procuring flood or windstorm coverage is a critical first step—but it is often not enough. Businesses must carefully assess all policy terms, conditions, and limitations to understand the true scope of coverage and whether it will support a full recovery after a storm loss.

Property insurance typically falls into several categories, including homeowners, commercial all-risk property, flood, and windstorm policies. However, standard homeowners and commercial property policies often exclude or sublimit coverage for flood and windstorm risks, particularly in storm-prone regions. As a result, despite an otherwise robust insurance program, businesses may face little or no coverage for hurricane-related losses, or recovery that falls well short of actual repair costs.

To address these issues, businesses may need to procure standalone flood or windstorm coverage. In some cases, insurers or lenders require separate flood insurance based on a property’s location, proximity to water, or designation within a high-risk flood zone.

Even then, not all policies are created equal. Coverage depends on the specific policy language, including how terms are defined and how exclusions, limitations, and conditions are applied. These provisions can materially affect whether—and to what extent—a hurricane-related loss is covered.

Policy language—not just the type of policy—controls coverage. For that reason, policies should be reviewed annually and evaluated as part of the broader risk mitigation program. Although many commercial property policies are written on an “all-risk” basis, insurers often interpret that term narrowly. Policyholders should confirm that anticipated storm-related risks are expressly covered under their specific policy wording, rather than assuming coverage based on policy labels or titles alone.

2. Gaps in Coverage.

Identifying coverage gaps before a loss occurs is critical to avoiding uninsured exposures.

For example, business interruption coverage can replace lost income and cover ongoing operating expenses while a property is repaired or rebuilt. However, such coverage is often subject to important limitations, including caps on the period of indemnity (sometimes referred to as the period of restoration) and restrictions on contingent business interruption tied to supply chain disruptions or the loss of critical customers.

Similarly, businesses with perishable inventory—such as restaurants, grocery stores, or specialty food operations—face heightened exposure. If inventory is lost during a hurricane, spoilage coverage may be critical, as these losses may otherwise fall outside standard property or flood coverage. Another example is damage to natural improvements, like landscaping. This damage may not be covered in a standard commercial property or homeowners policy without endorsements that modify conventional insuring language. Or, natural improvements may be covered under a standard policy but precluded in the event the loss is due to a hurricane or storm peril. 

Policyholders should consider the scope of their business to ensure that they have appropriate and comprehensive coverage in place to avoid potential coverage gaps when a specific loss occurs. Consider consulting with counsel or your insurance broker to evaluate existing coverage and determine whether enhancements are advisable.

3. Uncovered Expenses.

Flood insurance often does not cover every aspect of hurricane-related loss. Certain uncovered or sublimited expenses can include, for example:

• Replacement cost (often limited to actual cash value)
• Debris removal (often sublimited)
• Extra expense (often sublimited)
• Preservation of property (often sublimited)

Because coverage for post-loss expenses differs significantly by policy, it is essential to review your insurance carefully to understand which of these expenses is covered.

Businesses also should conduct a detailed inventory of property and operations to help anticipate potential post-loss expenses. This can help inform whether adjustments to coverage are warranted.

4. Inadequate Limits.

Policyholders should also assess whether their policy limits and sublimits are sufficient. Even where coverage exists, sublimits can significantly restrict recovery.

For example, a business may carry a $1 million per-occurrence general property limit, but if its operations depend on natural assets—such as fruit trees—and the policy imposes a $50,000 sublimit for “natural improvements,” recovery may fall well short of the actual amount of loss. Similarly, a homeowner who completes a significant renovation without notifying the insurer may find that an auto-renewed policy no longer reflects the property’s true replacement value, leaving a policyholder substantially underinsured.  

These risks underscore the need for a detailed, asset-specific evaluation. Structures, personal property, and business operations often carry different exposures and may be subject to different limits or sublimits.

Policy limits and sublimits—rather than headline policy limits alone—often determine the adequacy of recovery. Policyholders should periodically reassess property values and business exposures to confirm that limits are both high enough and appropriately structured to cover a catastrophic loss from a tropical storm or hurricane.

5. Uninsured Property.

Even the most expansive policy will not provide coverage if the damaged property is not included in the policy’s scope. Many policies cover only specifically scheduled locations.

Over time, a policy’s schedule of locations may become outdated. A schedule that was accurate when the policy was first bound may no longer reflect subsequent business expansion, new facilities, or improvements that were never reported to the insurer. In those circumstances, a carrier may deny coverage altogether—leaving the policyholder exposed to uninsured losses.

Policyholders should review their policies at least annually—and in advance of hurricane season—to confirm that all locations, properties, and improvements are accurately listed. Ensuring that schedules are current is a critical step in preserving coverage and avoiding unexpected gaps following a storm.

After a Storm Hits, Consider Taking the Following Steps to Maximize Recovery.

Promptly giving notice to the insurer, documenting the loss, and undertaking reasonable mitigation efforts can go a long way in the claims process and protecting your assets.

1. Notify your insurer and file a claim. 

Prompt notice to your insurer after a hurricane loss is critical. Most insurance policies impose notice requirements, and compliance with those requirements may be a condition of coverage. Notice deadlines vary widely by insurer and policy, and in some cases are informed or modified by applicable statutory law. Policyholders should understand those deadlines, but, whenever possible, should nevertheless provide notice well before any deadline approaches.

If your business works with a broker or has a risk management team, immediately notify them as well. Coordinating early with these professionals can help streamline notice and claims handling. In many cases, brokers offer claims‑related services in addition to placing coverage and may be able to assist with, or even submit, notice to the insurer on your behalf.

Your broker, attorney, or insurance professional can also advise you on the claims process. Work with them to determine the most prudent time to file a claim with the insurer for the damage you sustained after a hurricane or storm.

2. Document the damage.

Act early. Promptly document the damage with photographs and video so you are prepared to submit documentation upon request. The claims process can be comprehensive and involved. Sometimes it requires submission of a proof of loss. Having detailed and organized records and documentation is imperative to a timely and thorough claims submission. Early action also helps ensure that all damage and related expenses are identified and submitted for coverage. Do not assume that your insurer will account for costs that were not submitted—it is the carrier’s responsibility to try to minimize its claims costs and it is your responsibility, along with your coverage team, to exhaust all efforts to obtain coverage.

3. Mitigate your losses.

Policyholders often have a duty under their insurance policy to reasonably mitigate their loss after a hurricane. Other than documenting the existing, visible damage with photographs and video, mitigation efforts may include:

• Efforts to prevent further water damage, like using tarps or turning off water lines
• Connect with restoration companies or other vendors who can initiate remediation and clean up
• Maintain records and invoices of work performed and costs expended
• Communicate consistently and early with your carrier, vendors, consultants, attorneys, and risk management team

Mitigation efforts are often a critical component to an efficient and successful claims process. These efforts can help protect and preserve coverage under your insurance policy.

Sustaining a loss after a devastating tropical storm can be difficult. Hunton’s experienced coverage counsel can help you navigate the claims process and maximize your insurance recovery to get your home or business back on track. Hunton’s insurance lawyers have handled storm losses nationwide for decades. Hunton’s Hurricane Recovery Resource Center contains important advice and resources to help policyholders prepare for a hurricane and deal with the aftermath.