Hurricanes: Windstorm Insurance Claims

Hurricane insurance doesn't exist as a specific, separate type of policy. Instead, it refers to a hurricane deductible on a homeowner's insurance policy, which is an extra amount that must be paid before the insurer covers hurricane damage. This is common in 19 hurricane-prone states and Washington, D.C. Hurricane insurance can also refer to special types of catastrophe insurance that cover flooding or extreme winds. In high-risk hurricane states, such as Florida and Texas, these policies are typical and sometimes required.

In addition to hurricane insurance, homeowners in coastal areas may need to purchase separate windstorm insurance, as their homeowner's insurance policies may not cover windstorm damage. Windstorm insurance covers damage from any strong wind, not just hurricanes, and is often offered as a rider on a standard casualty insurance policy.

Hurricane insurance is a combination of flood and windstorm insurance

Hurricane insurance is a combination of insurance policies that can be purchased to protect your home from hurricane damage. This includes flood insurance, windstorm insurance, and home insurance.

Home insurance policies typically cover damage caused by heavy winds, such as shingles or siding being ripped off by hurricane winds. However, in some states, such as Louisiana, Texas, and Florida, you may need to purchase an additional windstorm insurance policy to be covered for wind damage.

Flood insurance covers damage to your home and possessions caused by an external flood, such as rising floodwater from a hurricane. This is separate from damage caused by a burst pipe, for example.

In addition to these, there may be a hurricane deductible that needs to be paid before you can claim reimbursement for hurricane damage. This is separate from your regular insurance deductible and is typically between 2% and 5% of what your home is insured for.

Therefore, hurricane insurance is a combination of flood and windstorm insurance, with the possibility of an additional deductible.

Home insurance policies in hurricane-prone areas may not cover wind damage

Windstorm insurance is a type of property-casualty insurance that protects policyholders from property damage caused by gales, winds, hail, and other gusty hazards. It is usually offered as a rider on a standard casualty insurance policy.

Windstorm insurance covers physical damage to the property and personal belongings. Many policies also include coverage for detached structures, such as garages and sheds.

Windstorm insurance covers excessively gusty events, such as hurricanes and cyclones, that are often considered too major and are therefore excluded from standard homeowners insurance policies. Residents of coastal and midwestern states, where hurricanes and tornadoes are relatively common, typically need to purchase this additional coverage.

Where can I get windstorm insurance?

If you are unable to purchase windstorm insurance from a private insurer, you may be able to get coverage from a state-run insurance pool or program. Here are some examples:

• Alabama Insurance Underwriting Association
• Coastal Market Assistance Program (Connecticut)
• Citizens Property Insurance Corporation (Florida)
• Georgia Underwriting Association
• Louisiana Citizens Property Insurance Corporation
• Maryland Joint Insurance Association
• Massachusetts Property Insurance Underwriting Association
• Mississippi Windstorm Underwriting Association
• New Jersey Insurance Underwriting Association
• New York Property Insurance Underwriting Association
• Rhode Island Joint Reinsurance Association
• South Carolina Wind and Hail Underwriting Association
• Texas Windstorm Insurance Association
• Virginia Property Insurance Association

Windstorm insurance can cost approximately $2,000 per year in coastal or high-risk areas. However, the cost can vary depending on the size of the home, its location, and the insurer.

Hurricane deductibles are separate from regular home insurance deductibles

A standard homeowners insurance policy deductible is a fixed dollar amount. This means that if you have a house fire, you pay the amount of your regular deductible toward repairs. For example, if your deductible is $1,000, you pay $1,000 toward repairs.

However, hurricane deductibles are usually a percentage of your home's insured value. So, if your home is insured for 300,000 and you have a 5% hurricane deductible, you would pay $15,000 toward repairs.

Hurricane deductibles first came about after Hurricane Andrew in 1992, which caused massive damage in South Florida and inflicted major losses on homeowners insurance companies. They became more widespread after Hurricane Katrina in 2005.

Hurricane deductibles are triggered when the U.S. National Weather Service, National Hurricane Center, or National Oceanic and Atmospheric Administration name a hurricane, tropical storm, or windstorm. The specific trigger varies depending on the insurance company and state. For example, in Florida, a hurricane deductible is triggered when the National Hurricane Center of the National Weather Service issues a hurricane watch or warning for any part of the state.

It's important to note that hurricane deductibles are separate from windstorm deductibles, which apply to damage from any kind of high wind, including hurricanes, tornadoes, and other storms. Windstorm deductibles can be lower than hurricane deductibles, sometimes as low as 1% of the property's insured worth.

Windstorm insurance covers damage from any strong wind

Windstorm insurance is a type of property-casualty insurance that covers damage to your home and possessions caused by strong winds and other gusty hazards, such as gales, hail, and cyclones. It is usually offered as a rider on a standard casualty insurance policy or as part of a homeowner's insurance policy.

Windstorm insurance typically covers physical damage to your property and personal belongings inside your home caused by strong winds and other gusty events. This includes damage to detached structures, such as garages and sheds, as well as damage caused by rain and debris that may accompany high winds.

Who Needs Windstorm Insurance?

Homeowners in areas prone to strong winds, such as coastal regions and the Midwestern states, may need to purchase windstorm insurance in addition to their standard homeowner's insurance policy. In some cases, mortgage lenders may require windstorm insurance for homes in high-risk areas.

The cost of windstorm insurance can vary depending on factors such as the size and location of your home, and the insurer. In coastal or high-risk areas, windstorm insurance can cost approximately $2,000 per year.

To file a windstorm insurance claim, policyholders should act quickly and take the following steps:

• Record the date of the storm and save news articles as proof.
• Assess and document all damage with pictures and/or videos.
• Have at least two reputable contractors inspect the property and provide written estimates for repairs.
• Contact the insurance company's claims department and request a visit from a claims adjuster.
• If the claim is denied, request another evaluation. Policyholders are typically entitled to meet with up to three different insurance adjusters.

Flood insurance is required to cover hurricane-induced flooding

Hurricane insurance is not a specific, separate type of policy. Instead, it is a combination of insurance policies that protect your home from hurricane damage, including flood insurance, windstorm insurance, and home insurance. Flood insurance is required to cover hurricane-induced flooding, as standard homeowners insurance policies do not cover floods, including water from a storm surge.

Flood insurance covers damage to the contents of your home, including personal belongings, and pays out based on the items' actual value after depreciation. However, you can purchase replacement cost coverage, which replaces lost property with new property without considering depreciation. Flood insurance is typically purchased through the National Flood Insurance Program (NFIP) or from a private insurer.

In addition to flood insurance, homeowners in hurricane-prone regions may need to supplement their coverage with windstorm insurance. Windstorm insurance covers damage caused by gusty events, such as hurricanes and cyclones, which are often excluded from standard homeowners insurance policies. Windstorm insurance can be purchased as a separate policy or as an endorsement to a standard casualty insurance policy.

It is important to note that there may be a separate, higher hurricane deductible for windstorm or flood damage claims. This deductible is typically a percentage of the home's insured value and is triggered by a hurricane watch or warning issued by the National Weather Service.

By combining flood insurance, windstorm insurance, and homeowners insurance, individuals can ensure they have adequate coverage for hurricane-induced flooding and other types of hurricane damage.

Frequently asked questions