Windstorm & Hurricane Coverage
For homeowners in hurricane-prone or coastal areas, securing windstorm and hurricane coverage is essential to protect against potential damage from high winds, flying debris, and storm surges. Standard Homeowners Insurance policies often exclude windstorm and hurricane damage, making separate coverage crucial for comprehensive protection.
This article will explain how windstorm and hurricane insurance works, who needs it, and what to consider when selecting coverage.
Why Windstorm & Hurricane Coverage is Important
High winds and hurricanes can cause extensive damage to homes, and standard homeowners insurance often excludes this Peril, especially in high-risk areas:
Protects Against Wind Damage: Windstorm coverage protects your home’s structure and roof from damage caused by high winds, hurricanes, and tropical storms.
Covers Structural Damage: It includes damage from fallen trees, flying debris, and roof failures, which are common during severe storms.
Meets Mortgage Requirements: In hurricane-prone areas, lenders often require windstorm or hurricane insurance to protect their investment in the property.
Understanding Windstorm & Hurricane Insurance
Windstorm and hurricane insurance policies are designed to cover damage caused specifically by strong winds and hurricanes. These policies are typically offered in one of two ways:
Windstorm Coverage Endorsement
An endorsement can be added to a standard homeowners Policy to cover windstorm damage. This is common in areas where wind damage is a potential risk but not frequent enough to require a standalone policy.
Covers wind damage to the home’s structure, roof, and Personal Property.
Standalone Windstorm Insurance
In states where wind damage is a significant risk, homeowners may need a separate windstorm insurance policy.
Covers damage to the home’s structure, roof, and personal property, similar to a standard homeowners policy but specific to wind damage.
Policies vary by state, with some states requiring standalone coverage in high-risk zones (e.g., coastal areas).
Hurricane Deductible
In addition to standard deductibles, some homeowners insurance policies in hurricane-prone states include a separate hurricane deductible.
Hurricane deductibles are often higher than standard deductibles and are based on a percentage of the home’s insured value, ranging from 1% to 10%.
What Windstorm & Hurricane Insurance Covers
Windstorm and hurricane insurance typically covers:
Damage to the Home’s Structure
Protects against wind damage to the roof, Siding, windows, doors, and Foundation.
Includes damage from fallen trees, flying debris, and structural failures caused by high winds.
Detached Structures
Covers detached structures like garages, sheds, and fences that may be damaged by high winds.
Personal Property
Covers personal belongings, including furniture, electronics, and appliances, damaged by wind or water entering through wind-damaged openings.
Additional Living Expenses (ALE)
Provides coverage for temporary housing and related expenses if the home is uninhabitable due to wind damage.
What Windstorm & Hurricane Insurance Does Not Cover
While windstorm and hurricane insurance covers a broad range of wind-related damage, there are some exclusions:
Flood Damage
Does not cover flood damage, including storm surge or flooding caused by rising water. Separate Flood Insurance is required for this protection.
Wind-Driven Rain
Some policies may exclude wind-driven rain unless it enters through an opening caused by wind damage (e.g., broken windows).
Landscaping
Damage to landscaping, such as fallen trees, shrubs, or gardens, may not be covered unless it damages a covered structure.
Who Needs Windstorm & Hurricane Coverage?
Homeowners who should consider windstorm and hurricane insurance include:
Coastal Residents
Homeowners in coastal areas, particularly in states like Florida, Texas, Louisiana, and the Carolinas, where hurricanes are common.
Residents in Windstorm-Prone Areas
Those living in areas prone to tornadoes or strong winds, such as parts of the Midwest and Great Plains, may need windstorm coverage.
New Homebuyers
Buyers of new homes in high-risk areas should ensure windstorm or hurricane coverage is in place, as lenders may require it as part of the mortgage agreement.
State-Specific Windstorm & Hurricane Programs
In high-risk states, there are specific programs and policies designed to provide windstorm and hurricane coverage:
1. Florida Citizens Property Insurance Corporation
Florida’s state-backed insurer of last resort offers windstorm and hurricane coverage to homeowners who cannot obtain it from private insurers.
Policies cover wind and hurricane damage, including damage from wind-driven rain if it enters through storm-created openings.
2. Texas Windstorm Insurance Association (TWIA)
TWIA provides windstorm and hail coverage to homeowners in designated coastal areas of Texas where private insurance is not available.
Covers structural damage, personal property, and additional living expenses.
3. North Carolina Joint Underwriting Association (NCJUA)
The NCJUA offers windstorm and hail insurance for homeowners in coastal areas of North Carolina, including the Outer Banks.
Provides coverage for structural damage, personal belongings, and ALE.
4. Louisiana Citizens Property Insurance Corporation
Louisiana’s state program provides windstorm and hurricane insurance for homeowners who cannot obtain coverage through the private market.
Covers wind damage, including structural failures and personal property damage.
Factors That Affect Windstorm & Hurricane Insurance Costs
The cost of windstorm and hurricane insurance depends on several factors:
Location
Coastal properties, homes in high-risk wind zones, and areas frequently impacted by hurricanes will have higher premiums.
Home Construction & Materials
Homes built with hurricane-resistant features (e.g., impact-resistant windows, reinforced roofs) may receive discounts.
Building codes may also influence rates, with newer homes often receiving lower premiums due to improved construction standards.
Coverage Limits & Deductibles
Higher coverage limits will increase premiums, while higher deductibles (e.g., hurricane deductibles) can lower costs.
Consider the balance between coverage needs and deductible affordability when selecting a policy.
Home’s Elevation
Elevated homes may have lower premiums, as they are less susceptible to storm surges and flooding.
How to Mitigate Windstorm & Hurricane Risk
Implementing wind-resistant features can help reduce premiums and protect your home (see our book about Hardening Your Home for a more extensive list of ideas):
Install Impact-Resistant Windows & Doors
Upgrade to impact-resistant windows, doors, and garage doors to prevent wind-driven debris from entering the home.
Reinforce the Roof
Use hurricane straps or clips to secure the roof to the walls, reducing the risk of roof failure.
Create a Windbreak
Plant wind-resistant trees or install fences that act as windbreaks to reduce wind impact on the home.
Seal the Roof Deck
Apply a waterproof membrane under the roof covering to prevent water intrusion from wind-driven rain.
How to Purchase Windstorm & Hurricane Insurance
Follow these steps to secure windstorm and hurricane coverage:
Consult with an Insurance Agent
Work with a licensed insurance agent to determine whether your existing policy includes wind coverage or if you need a separate policy.
Compare Coverage Options
Review coverage options, deductibles, and costs from different insurers to find the best fit for your needs.
Consider Bundling
If available, bundle windstorm coverage with other policies (e.g., homeowners, flood) to potentially reduce premiums.
Prepare Documentation
You may need to provide documentation of the home’s construction features, location, and elevation to determine coverage eligibility and cost.
How Windstorm & Hurricane Coverage Impacts Homeowners Insurance
Windstorm and hurricane coverage can work alongside homeowners insurance to provide complete protection:
Supplementary Coverage
Windstorm and hurricane insurance fills the coverage gap for wind-related damage, which is often excluded from standard homeowners policies.
Reduces Financial Exposure
By covering structural and personal property damage from wind and hurricanes, it reduces out-of-pocket expenses after a storm.
May Be Required by Lenders
For homes in hurricane-prone areas, lenders typically require proof of windstorm or hurricane insurance as part of the mortgage agreement.
Additional Resources
Insurance Information Institute (III): Offers resources on windstorm and hurricane insurance options and mitigation strategies. Visit III for more information.
FEMA Hurricane Preparedness Guide: Provides tips on preparing your home for hurricanes and reducing windstorm damage. Visit FEMA for guidance.
Florida Division of Emergency Management: Offers resources for Florida homeowners on hurricane insurance and preparation. Visit Florida DEM for details.
Wrap-Up
Windstorm and hurricane coverage is essential for homeowners in coastal or wind-prone areas. Understanding the coverage options, state-specific programs, and mitigation strategies can help you make informed decisions about protecting your home.
Consult with an insurance agent to explore the best coverage for your location and risk level, ensuring comprehensive protection in the event of severe storms or hurricanes.