Standard homeowners, renters and business property insurance policies will cover wind damage from Hurricane Ike. Home and renters policies also include coverage for additional living expenses (ALE). This pays the additional costs of temporarily living away from a home if it is uninhabitable due to an insured disaster. ALE covers hotel bills, restaurant meals and other living expenses incurred while a home is being rebuilt. Many people living in Texas coastal counties will have their wind damage paid through their policy with the Texas Windstorm Insurance Association.

A hurricane deductible was applied to wind damage from Hurricane Ike in coastal areas. Depending on the policy, hurricane deductibles usually vary between 1 and 15 percent. They are calculated as a percentage of the dollar amount of coverage on the dwelling. The trigger for hurricane deductibles, or the point at which they apply, varies by company. In some policies, there may be a dollar deductible for wind which is higher than for other perils listed in the policy.

The most significant flood damage from Ike occurred as the result of the storm surge from the hurricane. Flood damage typically is excluded under standard homeowners, renters and business insurance policies. Flood coverage, however, has been available since 1968 in the form of a separate policy from the federal government's National Flood Insurance Program (NFIP), and from a few private insurers. Texas had the second-highest number of NFIP polices in effect in the U.S. as of June 30, 2008 (662,606). Florida was the only state with more NFIP policyholders. More details on national flood insurance facts and figures, as well as Texas-specific data, can be found in this Policy Statistics report.

Storm surge is generally defined as the rise of water beyond what would be expected by its normal movement due to tides. The NFIP routinely pays storm surge related claims. Virtually every federal and state court that has examined the issue of storm surge in recent years has ruled that losses incurred by storm surge are flood-related and are excluded from coverage under the standard homeowners policy.

The I.I.I. has produced a point of use video podcast on how to file a claim. It can be downloaded to a computer or a personal digital device so that you can play the information as you go through the claims process. The podcast can be accessed at: Six Steps to Follow When Filing a Claim. It is also available on iTunes in the podcast section by searching for "Insurance Information Institute."