Hurricane Insurance Explained
Windstorm insurance is typically purchased as an add-on to homes insurance. It protects you in the event that a windstorm, like as a hurricane, destroys your house or personal belongings.
While conventional homeowners policies usually cover basic windstorm damage, customers who live in particular areas may be compelled by their mortgage lender to acquire additional coverage through a windstorm insurance policy.
More information regarding this sort of insurance, including who needs to buy it, may be found here.
Definition and Examples of Windstorm Insurance
You may add windstorm insurance to your current homes insurance policy as a supplementary coverage. This sort of policy, often known as hurricane insurance, can cover you if your house is damaged by a strong windstorm, hailstorm, or hurricane. Mortgage lenders generally need it as a condition of the loan for property owners who live in specified areas, such as along the Gulf Coast of the United States or in specific coastal states.
NOTE: Homeowners insurance coverage do not cover every hazard or natural calamity. You may need to acquire supplemental hurricane, windstorm, and flood insurance depending on where you reside. You may also acquire supplemental earthquake coverage, albeit it isn't required by law.
Because windstorm insurance may not cover flooding or storm surges caused by a windstorm, it's a good idea to get a flood insurance policy as well. In fact, if you reside in a location where both windstorms and flooding are common, your lender may require you to obtain both forms of insurance. As a result, your house will be safer against more natural calamities.
Let's imagine you reside along the Florida shore, where windstorm insurance is necessary. The roof of your house is blown off by a hurricane. The rain that comes in damages your second floor significantly. A wave of water rushes into your home as a result of the storm, flooding the basement and main level.
Let's imagine you reside along the Florida shore, where windstorm insurance is necessary. The roof of your house is blown off by a hurricane. The rain that comes in damages your second floor significantly. A wave of water rushes into your home as a result of the storm, flooding the basement and main level.
The physical damage to your home would be covered by your windstorm insurance. The items on the second level that were damaged by the rain that poured in after the roof was blown off may also be covered by your insurance. To be sure, double-check your policies.
The flood damage in your basement and main floor, however, would not be covered unless you had a separate flood insurance because the storm surge was not directly caused by wind damage to your property.
Hurricane insurance is another term for it.
How Does Windstorm Insurance Work?
Damage caused by windstorms is covered by windstorm insurance. If your house is damaged by an included danger, you must file a claim with your insurance company to begin the recovery process. Take video and photographic documentation of the damage before filing the claim. You'll also need confirmation of the storm, so gather any authoritative news sources that can back up your claims. Claims may be subject to a time restriction, so make sure you file them as soon as possible.
Windstorm insurance plans often contain deductibles for both wind and hurricane damage. Others also have a named-storm deductible. The deductible you pay is determined on the type of storm that damaged your house. Hurricane deductibles, for example, usually apply to damage caused by a named storm. Your insurance representative will be able to assist you in navigating the differences.
TIP: It's crucial to remember that windstorm insurance deductibles are often determined as a proportion of your home's entire insured value, regardless of the storm type. Although your insurance provider may have various methods, you normally get to choose a percentage between 1% and 5% for your deductible.
Here's an illustration: Your home is insured for $250,000. You choose to have a 2% deductible. The amount of your deductible would be $5,000. So, if a storm caused $30,000 in damage to your home and belongings, your insurance company would send you a check for the authorized amount minus your deductible, or $25,000.
Generally speaking, the bigger your deductible, the cheaper your premium. You can save money by choosing a larger deductible. However, if your house is destroyed, you will have greater out-of-pocket payments.
What Does Windstorm Insurance Cover?
Windstorm insurance covers both the inside and outside of your home in the event that it is damaged by high winds. This includes your personal items, the physical structure of your home (roof, windows, walls, and so on), and any other structures on your land.
It does not, however, cover damage caused by floods or storm surges. Both wind and water damage can occur during a severe wind event, such as a hurricane. Water damage in your house caused by windstorm insurance would only be covered if it was a direct result of the wind damage.
Do You Need Windstorm Insurance?
Windstorm insurance is likely to be provided as part of conventional homes insurance for those who live in low-risk locations. Residents in coastal cities and other high-risk areas, on the other hand, may need to acquire a separate insurance to be protected.
IMPORTANT: You may not be able to get windstorm insurance until after a significant storm has passed. There may be a period of time before you may add this coverage to your homeowners insurance. Purchase this coverage far ahead of hurricane season to guarantee that you are covered.
Your mortgage lender may also require you to carry windstorm insurance as a condition of your loan. If you reside in a location prone to windstorms, hurricanes, tornadoes, or other wind-related calamities, even if you aren't obliged, it's a sensible investment. To find out if this coverage is good for you, talk to your insurance agent.
Key Takeaways
Wind and hail damage may be excluded from your basic homeowner insurance coverage depending on where you reside.
If your insurance excludes this type of damage, you'll need to acquire an add-on coverage to protect your house from wind-related damage.
Storm-surge damage is not covered by windstorm insurance, and flooding induced by wind damage may or may not be covered. If you're at danger for these disasters, you may also require flood insurance.
Deductibles for windstorm insurance are normally a proportion of the entire insured value of your house.
