Windstorm insurance: how it works and who needs it

What is windstorm insurance?

Windstorm insurance pays for damage to your home caused by high winds, which frequently damage roofs, siding, soffits and gutters. Standard HO-3 policies and most other home insurance types automatically include wind as a covered peril. However, homeowners insurance companies can exclude or limit this coverage in areas at high risk of frequent wind damage.

Do I need windstorm insurance?

While home policies may include some level of coverage for wind damage, you may need a separate policy or endorsement for certain windstorm events if you live in a high-risk area. Homeowners in coastal states and areas prone to hurricanes, as well as homeowners in areas prone to tornadoes and strong thunderstorms, may want to consider confirming how wind damage is covered in their homeowners insurance policies.

Additionally, some policies include a “named storm” deductible. This means that general wind damage could be covered with a traditional flat deductible (such as $1,000), but if a storm has been given a name — as is common with hurricanes and tropical storms — the deductible is typically a percentage of the total dwelling coverage amount (such as 2 percent). If your policy has a named storm deductible, you will want to understand how the percentage-based deductible will impact your budget in the event of a hurricane or tropical storm.

Currently, 19 states and Washington, D.C. permit home insurance companies to add hurricane deductibles, according to the National Association of Insurance Commissioners (NAIC):

• Alabama
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Louisiana
• Maine
• Maryland
• Massachusetts
• Mississippi
• New Jersey
• New York
• North Carolina
• Pennsylvania
• Rhode Island
• South Carolina
• Texas

How to purchase windstorm insurance

If you already have a homeowners insurance policy, talking to your agent can help you determine how wind damage is covered on your policy.

The options to buy windstorm insurance vary from state to state. For example, in Florida, with its high hurricane risk, insurance carriers are required by law to offer homeowners windstorm coverage. While homeowners can choose to decline coverage, windstorm-only policies are typically only available through Citizens Property Insurance Corporation for condos, renters and mobile homes. In coastal areas of Texas, the Texas Windstorm Insurance Association (TWIA) is a source of windstorm coverage for homeowners where wind damage is excluded.

When to buy windstorm insurance

There are certain restrictions that many carriers impose that limit the timing for buying windstorm insurance. Many insurers impose “insurance moratoriums” 24 to 48 hours before a major hurricane or another significant weather event occurs. These moratoriums prevent the company from selling new policies in the designated area during the specified timeframe.

The purpose is to prevent people from simply buying this insurance immediately before a disaster and canceling once the storm passes. "Like with most types of property insurance," says Natalie Todoroff, Bankrate insurance analyst, “it’s best to have wind insurance well before you actually need to use it."

How much does windstorm insurance cost?

The national average premium for home insurance is $2,258 per year for a policy with dwelling coverage of $300,000. This average rate is for an HO-3 policy with wind coverage and a 2 percent hurricane deductible, or whatever is the closest available option in the state.

Windstorm coverage on an existing homeowners policy will sometimes have a separate deductible that is higher than your underlying homeowners policy deductible if the storm is a named storm (e.g., a hurricane or tropical storm).

The cost of a stand-alone windstorm policy will vary depending on several factors, like the age of your home, your home’s rebuilding cost, the likelihood of damage in your area and if you have taken any damage-mitigating measures like installing hurricane shutters. Texas is a good example of how the need to purchase a separate wind policy can impact the cost of insuring a home. The average cost of a TWIA policy is about $2,300 per year, which homeowners pay in addition to their regular home insurance policy.

Windstorm insurance can be expensive, particularly if you live in an area that is prone to catastrophic weather events. In the states where these events are a threat, rates for wind insurance can vary from county to county depending upon each area’s history of storm damage. Homes on the coast will generally be more expensive to insure than those built in areas inland. It is important to review all your options with your agent and seek out quotes from several companies to compare coverage and prices.

How to file windstorm insurance claims

The damage that windstorms cause can be devastating. Approximately one out of every 35 homeowners will make a wind- or hail-related insurance claim each year according to Triple-I. If your home has been damaged by a windstorm, you may choose to file a homeowners insurance claim to help pay for the cost of repairs. Here is a snapshot of how to make a successful claim:

1. Review your policy: Review your applicable deductible levels on your policy. Ask your carrier how and when these are to be paid. Read your policy carefully for coverage levels and exclusions. Doing this prior to a storm may help you to be more prepared for the claims process if your home is damaged.
2. File promptly: As soon as it is safe to do so, examine your property for damage after a storm and file your insurance claim. Most companies allow policyholders to file claims by phone, or you may be able to file online or through an app. Make sure you note the day the storm occurred, as that will be the “loss date” when you file the claim. Most home insurance companies allow claims to be filed for months or even a year after the damage occurred but will question the reason for the delay. Additionally, because windstorms can cause widespread damage, filing your claim as soon as possible may help speed up the process.
3. Document the damage: Keep a timeline of the events before, during and after a storm. Be sure to keep documentation of all damage, such as photographs or receipts for emergency repairs.
4. Schedule repairs: If you need to have repairs done immediately, such as having a tarp put onto your roof to prevent further damage, keep the receipt so that your insurance company has the necessary information to reimburse you. You can schedule the final work to be done, but wait until your claim handler has authorized the repairs before beginning.
5. Ask questions: If you have any questions during the claim process, talk to your agent or claim processor for clarification.

Having a damaged home is stressful, but your homeowners insurance is designed to help cover its restoration to the state it was in prior to the damage.

Frequently asked questions