A Complete Guide on Why You Need Windstorm Insurance Coverage.
Your home is not just where your heart is, but also where you invest your hard-earned money. And so it’s only right that you should protect your property with homeowners insurance.
But have you ever thought about what would happen if a tornado or hailstorm were to strike? You never can tell when that may happen. After all, it’s just some random season in the middle of April or May when you are busy enjoying your weekend or vacation time away from work.
You may think that your homeowners insurance policy quote will suffice but let me tell you that even the best of homeowners insurance will not pay for damage caused due to wind storms or hurricanes.
So what sort of insurance should you get then?
If you are coastal homeowners where windstorm and hurricane damage are common then knowing what your homeowner’s insurance will cover is the key to finding the right kind of windstorm insurance policy.
Let’s go ahead and learn:
What exactly is the Windstorm Insurance Coverage?
Your homeowner’s insurance policy will take care of damages like broken air conditioning units and windows, cracked walls, collapsed roofs due to heavy snowfall or fallen trees, etc. but not for any damages caused by windstorms.
That’s where a wind insurance policy comes in. Windstorm coverage is basically an extra type of homeowners insurance that primarily protects home and property owners from damage due to windstorms.
It also provides flood protection and other types of natural disasters and even covers the loss or damages caused by wear and tear, deterioration, and poor construction.
It is generally best suited for people living in coastal areas where windstorms are common.
What does a Windstorm Insurance Policy Cover?
A windstorm insurance Texas policy provides protection against damages and losses caused due to:
- Hurricane/Typhoon/Tropical Storm
- Thunderstorms, including lightning damage
- High Winds (at least 58 mph)
- Hail/Debris Damage
You must get separate windstorm coverage for your home to be protected against these natural disasters. It may cost you a little more than your homeowner’s insurance but the coverage is definitely worth it. A single windstorm policy can cover up to one hundred percent of the total insured value of your house, contents, and any additional buildings like sheds, garages, etc.
It can also protect you from financial loss in case you are unable to make use of the property due to any damage caused by natural disasters. It also covers the living expenses if you can’t stay at your home due to damages caused by the storm.
What does a Windstorm Insurance Policy not cover?
Although windstorm insurance covers up to 100 percent of your home or business, it does not cover everything. For example, a severe storm damages the roof of your house, and your personal belongings get ruined due to water pouring from the roof. You can file a claim for roof repair but it will not cover water damage.
Here are some exclusions usually found in most windstorm insurance policies:
- Loss due to Flooding
- Wear and Tear/Deterioration
- Improper or Deficient Construction
In order to cover these additional risks, you may have to buy separate flood insurance coverage and commercial property insurance policies respectively which will cost you an extra buck or two.
Also do remember that if you’ve already insured your house under a standard homeowner’s insurance policy then windstorm coverage will only add extra protection and will be subject to windstorm deductible charges. So the next time you plan to buy a windstorm insurance policy make sure to check with your agent on what all is not protected by this kind of coverage deal.
How do I claim my windstorm coverage?
The process to file a claim for your windstorm insurance policy is exactly the same as you make claims on your regular homeowner’s insurance. The only difference is that instead of getting compensation for damages caused due to landslides, earthquakes, heavy rains, etc. you’ll get it for damages caused by windstorms and other natural disasters like hurricanes or typhoons.
How much do windstorm insurance plans cost?
Windstorm insurance plan costs vary depending on the region you live in. For example, an average three-bedroom house in New York would cost approximately $500 when fully insured while the same type of home in Florida would require extra protection against hurricanes and will pay up to $2000 when fully insured. Get in touch with reliable homeowners insurance companies to get the right quote.
What is the average premium cost of windstorm insurance?
The total expected windstorm insurance premiums you’ll pay on an annual basis can be calculated by multiplying your home’s replacement (replacement cost which includes the insured value of a home, belongings, and any additional buildings) with some percentage i.e. 1.75 percent according to average Florida rates.
For example, if your home replacement cost is $300,000 then you would pay 1.75 percent of that which works out to be $5,250 per year for windstorm coverage. However, if you live in Arizona where windstorms are considered rare then the rate will go down even further and may only require an extra $500-$1000 to be paid per year for windstorm coverage.
What are the extra costs involved?
Although windstorm insurance comes with an average price tag, there are various charges you need to consider before buying this type of coverage plan.
Here’s a list of some additional costs that you’d have to bear in mind:
- Certificate of Insurance Charges – You’ll have to pay an extra fee for this policy document.
- Taxes – Windstorm insurance cover is treated as a property rather than a casualty kind of coverage so you’ll have to pay taxes on it just like any other real estate transaction.
- Inspection Costs – To protect both sides, most windstorm coverage plans require the insurer to make an inspection of your insured property prior to making any claim. This can cost you some extra bucks depending upon the carrier and plan you’ve selected.
- Actual Cash Value Charges – Although windstorm coverage provides an actual cash value (ACV) replacement for your belongings, it does not compensate for any improved value that was added after you’ve bought the items. This includes any kind of improvements you made to a particular property. For example, if you’ve spent an extra $1,000 for installing a brand new security system then that amount will not be included in ACV coverage and is deemed as a lost investment.
What will my windstorm deductible be?
You can choose your own windstorm deductible charges based on the coverage you want to implement. For example, if you opt for a deductible of 1,000 then you’ll have to pay this much amount from your own pocket before the insurance company pays the remaining loss. This will reduce your premium cost but make sure that you can afford it because in case of a loss you’ll have to pay this much amount from your own pocket.
Do I really need a Windstorm Insurance Policy?
A windstorm policy is a very important type of insurance cover that should be considered by anyone living in a high risk area where windstorms are common. If you already have a homeowners insurance Texas policy then add windstorm coverage to it for enhanced protection against such disasters.
Contact your insurance provider today and get a homeowners insurance quote to protect you and your family from unforeseen natural calamities.