Windstorm insurance is an essential form of property-casualty insurance that protects policyholders against damages from high winds associated with storms, including hurricanes, tornadoes, and severe gales. This article delves deeper into windstorm insurance, its workings, coverage parameters, and the steps to effectively file a claim.
Key Takeaways
- Windstorm insurance protects against property damage from extreme wind events like hurricanes and tornadoes.
- It covers physical damage to both property and personal belongings within the home.
- Windstorm insurance is often an addition to standard homeowners' insurance policies.
- Policyholders must adhere to deadlines for filing claims for windstorm-related damages.
How Windstorm Insurance Works
Windstorm insurance is often necessary for homeowners residing in areas vulnerable to severe wind events. Standard homeowners insurance policies generally exclude coverage for these catastrophic events, which makes windstorm insurance a crucial financial safeguard. This additional coverage is particularly pertinent for residents of coastal regions and the Midwestern United States, where the frequency of such weather phenomena is considerably higher.
Individuals with a mortgage loan who live in these high-risk areas might find that their lenders require them to maintain a windstorm insurance policy as part of their mortgage agreement.
Coverage Details
Windstorm insurance usually encompasses:
- Property Damage: Coverage for physical damage to the structure of the home and personal possessions.
- Detached Structures: Most policies extend coverage to include detached structures like garages and sheds, which can also suffer damage from wind events.
- Additional Repairs: If wind damage is compounded by rain and debris entering the home, policies typically cover essential repairs following the initial damage.
Exclusions from Coverage
While windstorm insurance provides significant coverage, it is essential to be aware of what it does not cover:
- Flood Damage: Flooding caused by storm surges following a windstorm is not covered. Homeowners need separate flood insurance, which often requires a 30-day waiting period before it becomes effective.
- Vehicle Damage: Damage to vehicles caused by wind-related incidents (such as trees falling due to high winds) is not covered by windstorm or homeowners insurance. Comprehensive auto insurance is necessary for vehicle protection.
Filing a Windstorm Insurance Claim
In the event of windstorm damage, timely action is crucial for policyholders. Here are steps that should be taken immediately after a windstorm:
- Documentation: Record the date of the windstorm and gather news articles or reports about the storm as evidence.
- Damage Assessment: Examine your property thoroughly and document the damage with photos and/or videos.
- Seek Professional Estimates: Have at least two reputable contractors evaluate the damage and provide written repair estimates.
- Contact the Insurance Provider: Reach out to the claims department of your insurance provider, providing all the gathered information, and request an evaluation from a claims adjuster.
- Presence During Inspection: If possible, have one of the contractors present during the insurance adjuster’s assessment to ensure an accurate evaluation.
- Challenge Denied Claims: If your claim is denied, you have the right to request a re-evaluation. You may consult up to three different adjusters if necessary.
Frequently Asked Questions (FAQs)
What is the difference between homeowners insurance and windstorm insurance?
Homeowners insurance provides comprehensive coverage for structural damage, theft, and liability, which may include wind damage. However, in high-risk areas, homeowners policies may not cover wind damage extensively, making windstorm insurance necessary.
Are you required to get windstorm insurance?
Generally, windstorm insurance is not mandatory. However, homeowners in coastal regions with mortgage loans may be required by their lenders to maintain such coverage.
How much does windstorm insurance cost?
The cost of windstorm insurance can be around $2,000 per year in high-risk areas, but this can fluctuate based on factors like the insured property's size, location, and the specific insurance provider.
The Bottom Line
Windstorm insurance is a vital resource for property owners in areas susceptible to extreme wind events, ensuring protection from extensive damages often excluded from standard homeowners insurance. Although it provides significant coverage, it does not extend to flood-related damages, underscoring the need for separate flood insurance. By understanding the nuances of windstorm insurance, homeowners can adequately prepare to safeguard their investments against nature’s unpredictable forces.