The Essentials of Windstorm Insurance

​Windstorm insurance is a particular type of property insurance that provides protection for policyholders from property damage that windstorms may cause. Windstorm insurance is typically offered as an endorsement on a standard property policy.

Most windstorms are cyclones or hurricanes. They are usually not covered in standard insurance policies for homeowners, especially for those who live in places that are susceptible to this kind of peril. Therefore, they have to be purchased as an extra coverage. People who live in the midwest where tornadoes are common or in coastal regions where hurricanes are common will typically find specialty coverages for these perils.

Windstorm hazard is the risk that a property may sustain tremendous loss because of high wind. A storm insurance policy or endorsement, as well as windstorm insurance, generally takes care of the losses that came from hail and excessive winds. A lot of homeowner's insurance policies do not include coverage for losses that occur from windstorms. If you want to have coverage, you should purchase a separate endorsement or windstorm insurance coverage.

There are several legal cases involved in years of appeals after Hurricanes Rita and Katrina. It became evident that consumers need more information about the need for different policies in flood and wind peril. Insurance companies took into consideration the addition of wind danger to their flood insurance policies. They added the overflow problem to standard systems for homeowners, required stricter building codes in regions near the coast and floodplains, and made improvements to the NFIP or National Flood Insurance Program. The policy notifications for new and renewal homeowners include data about the absence of flood coverage in standard policies as well as the need to take this type of coverage into consideration.

Property owners near the coast have high exposure to hail and windstorm losses, which is why they need property insurance. There is a beach plan designed to cover the losses that regular homeowners do not have in their insurance policy. It may have a separate deductible like $5,000. Some beach projects have a percentage deductible depending on the insured value of the home.

If your home has a value of $250,000 and the deductible of your beach plan is at 5%, you'll need to pay $12,500 before your insurance policy pays for anything. Insurance companies may not afford to offer the beach plans if they do not have these high deductibles. Losses in windstorm may be highly expensive for insurers because they create a lot of damage and affect lots of policyholders at the same time.

At the Brad Spurgeon Insurance Agency Inc. we take pride in making sure our clients are well protected at prices they can afford. To learn more about how we can help you please contact our agency at 1-409-945-4746 or Click Here to request a free quote.