Windstorms can cause devastating damage to property and personal belongings. Thus, windstorm insurance protects the physical structure of a property and even its detached structures. It is an addition you can add to the homeowner’s insurance policy. But how does payment for windstorm insurance work?
- The insurance company requires the policyholder to pay a deductible.
Before reimbursing, the insurance company requires the policyholders to pay a deductible. It is often a percentage of the insured value of the property. It usually ranges from one to five percent. For instance, the insurer has to pay $13,500 if the property’s value is $450,000 with a three percent deductible. - The value of deductibles often depends on the state.
The laws in each state are specific about events that qualify as deductible. For example, in Florida, if the National Weather Service declares a hurricane warning in Florida, insurers charge for a windstorm deductible. In Texas, a dollar amount deductible is charged for wind damage. In Alabama, insurers should offer discounts to policyholders who strengthen their homes against windstorms. - There is an option of paying higher premiums for traditional deductibles.
The policyholder might be able to pay a higher premium in exchange for a fixed $5,000 deductible. The policyholder may also be able to lower premiums for a higher fixed deductible, like $15,000. But this depends on how close the property is to the shore. Consequently, if the policyholder lives in high-risk coastal areas, insurers could not have this option. - Some insurers charge a specific dollar amount for windstorm deductibles.
Insurers charge a specific dollar amount, usually to a standard home insurance deductible. In this case, the policyholder may lower their windstorm deductible by upping their annual premium.
Conclusion
Windstorm insurance costs depend on the property’s location, condition, size, and even replacement cost. Homeowners who live in high-risk coastal, tornado, and hurricane regions will pay the highest premiums. Even though windstorm insurance could be pretty expensive, it is still significantly cheaper than paying to repair damages.
At Brad Spurgeon Insurance Agency Inc., we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (409) 945-4746 or Click Here to request a free quote.