Windstorm insurance coverage: Does homeowners cover wind damage?

What is windstorm insurance?

Windstorm insurance is coverage that pays for damage to your home from a wind event such as a tornado, hurricane or other named storm. It's usually included in standard homeowners insurance policies, but in high-risk areas, it may be excluded and must be added as an endorsement or a separate policy.

If you live in an area with a higher likelihood of tornadoes or hurricanes and other named storms, such as some parts of the South, then there’s a higher likelihood you’ll need to add wind damage insurance to your standard homeowners insurance policy.

Windstorm insurance covers events such as hurricanes and tornadoes in areas where homeowners insurance does not provide this coverage. Verify the coverage on your policy by reviewing the covered perils and exclusions sections to confirm whether windstorms are covered or excluded. Even windstorm coverage doesn't cover all possible damage from a storm; coverage for floods from hurricanes, for example, requires separate flood insurance.

Is wind damage covered by homeowners insurance?

Yes, wind damage is covered by homeowners insurance in most states, but in areas that have a higher risk of wind damage, such as parts of Florida and Texas, you may need to buy wind damage insurance as an endorsement or a separate policy to fill in gaps that your homeowners insurance doesn’t cover.

Additionally, in 19 states and the District of Columbia, even if wind damage coverage is part of your homeowners insurance policy, you may have a separate hurricane or windstorm deductible. This deductible is usually a percentage of your dwelling coverage.

“Windstorms and named storms are something that agents and insureds need to pay close attention to. You have to make sure you understand the deductible the carrier may put in place,” says Jeffrey Camara, managing partner at Vargas & Vargas Insurance in Massachusetts.

Most carriers base windstorm deductibles on a percentage of your dwelling coverage. For example, if your dwelling coverage is $500,000, and you have a 2% hurricane deductible, your deductible would be $10,000. You'll have to pay that amount before insurance pays anything.

“This is important as many people don’t look at deductibles until they have a loss,” Camara says.

What does windstorm insurance cover?

Windstorm insurance covers wind damage from events such as extreme winds, tropical storms, hurricanes, tornadoes and hail, whether as part of your homeowners insurance policy or as an endorsement or standalone policy. Separate windstorm policies often offer higher coverage limits and more specialized coverage than what's included with a standard policy, and you may have more deductible options to choose from.

“To determine the value of separate windstorm insurance, homeowners should consider the frequency and severity of windstorms in their area. If their location is prone to high winds or hurricanes, separate coverage may offer more comprehensive protection than a standard policy,” says Gregg Barrett, CEO of WaterStreet Company, an insurance software provider.

“Homeowners should compare the coverage limits, deductibles, and exclusions of both types of policies. Separate windstorm insurance might cover a broader range of wind-related damages and provide higher limits, which could be crucial for homeowners in high-risk areas. Regular homeowner's policies might offer some protection but can be limited and not as specialized for windstorm-related claims,” he adds.

What isn’t covered by windstorm insurance?

Windstorm insurance doesn't cover overland flooding, even if it's a direct result of a covered storm, such as a storm surge or a flash flood from heavy rain. Some windstorm policies exclude coverage for hail damage, so it’s important to check the specifics of any policies you’re considering.

Also, windstorm insurance generally does not cover most water-related damage from storms, like flooding caused by a hurricane. Standard homeowners insurance also generally does not cover flood damage from these events.

If a storm “produces heavy rains and groundwater enters your home, that would not be covered on your policy,” says Camara.

How much does windstorm insurance cost?

Windstorm insurance costs vary by location and home type. In Texas, for example, the average windstorm insurance residential policy costs around $2,000 per year, according to the Texas Windstorm Insurance Association.

The amount of coverage you need and your deductible also affect windstorm insurance costs; a higher deductible results in lower rates, and more coverage increases costs.

Do I need windstorm insurance in my state?

You likely need to buy windstorm insurance if you live in a high-risk area, such as a coastal part of your state, either as an endorsement or a separate policy. In extremely high-risk areas, homeowners may need to turn to state-sponsored windstorm insurance plans. The states with these plans are:

Alabama: Alabama Insurance Underwriting Association (AIUA)
Florida: Citizens Property Insurance Corporation (provides wind-only policies)
Louisiana: Louisiana Citizens Property Insurance Corporation
Mississippi: Mississippi Windstorm Underwriting Association (MWUA)
North Carolina: North Carolina Joint Underwriting Association (NCJUA) / Coastal Property Insurance Pool
South Carolina: South Carolina Wind and Hail Underwriting Association
Texas: Texas Windstorm Insurance Association (TWIA) (14 coastal counties and part of Harris County)

If you have a hurricane deductible on your homeowners insurance policy, that generally means coverage is provided; not having one doesn't automatically mean it's excluded. Read your policy to be sure. In these 19 states (and in Washington, D.C.), insurers can add a hurricane deductible to your policy:

Alabama
Connecticut
Delaware
Florida
Georgia
Hawaii
Louisiana
Maine
Maryland
Massachusetts
Mississippi
New Jersey
New York
North Carolina
Pennsylvania
Rhode Island
South Carolina
Texas
Virginia
Washington, D.C.

How and when to file a windstorm claim

File a windstorm claim as soon as possible after the damage occurs. Contact your insurance company immediately, whether that's your homeowners insurance company or your windstorm insurance company, to file the claim. The process is similar in both cases: report the damage and provide photos and any documentation the insurer requests, and then work with an adjuster to evaluate the damage and calculate a settlement.

You may be able to file your claim online, or you may need to phone your insurance company or agent directly. Refer to your policy for claim filing instructions, or visit your carrier's website.

What does wind mitigation mean in insurance?

Wind mitigation in insurance means taking protective measures that reduce the risk of wind damage. For example, reinforcing your roof and adding storm-resistant doors and windows are forms of wind mitigation. These steps reduce the likelihood of wind damage, making your home more insurable and your insurance cheaper.

How much does a wind mitigation report save on insurance?

A wind mitigation report can earn you a discount of up to 88% in Florida, but the discount varies by location and insurance company, as well as the type of mitigation efforts you've completed, such as a reinforced roof, storm-resistant doors and storm shutters.

If you live in a windstorm-prone area, confirm whether your homeowners insurance covers windstorms or whether you need to purchase separate coverage, either as an endorsement or a separate policy. You can reduce the cost of windstorm insurance by shopping around with various carriers and raising your deductible; however, be sure you can afford to pay it if you have to.

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