What Does Wind and Hail Insurance Cover?
Now that we’ve covered what windstorm insurance entails, let’s talk about the costs. The cost of windstorm insurance is influenced by several factors such as:
As you might expect, insurance rates can vary significantly based on your home’s location, even at the county level, reflecting the local history of storm damage. And don’t forget about ‘named storm’ deductibles – these typically come into effect during hurricanes or tropical storms and are a percentage of the dwelling coverage amount.
But can these costs be understood and managed more effectively? Let’s uncover the methods.
Understanding Your Deductible
When it comes to wind and hail damage, you might have to deal with a separate deductible, which could be set as a percentage of the home’s insured value, usually ranging from 1 to 5 percent. This means that after storm damage, you may face increased out-of-pocket expenses due to these deductibles, especially if there’s a ‘named storm’ deductible involved, which is calculated differently than traditional flat deductibles.
To manage deductibles effectively, homeowners in windstorm-prone areas should regularly review policy changes and consult with their insurance agents. Opting for a higher deductible can result in lower insurance premiums, which can help you integrate the cost of wind and hail insurance into your budget more comfortably.
Discounts and Savings Opportunities
Who doesn’t love a good discount? Homeowners who pass a wind mitigation inspection are eligible for discounts offered by insurance companies. This can help reduce the cost of coverage for their homes. Even bundling home and auto policies from the same insurer can result in discounts, potentially reducing the overall cost.
If you’re in a high-risk area, exploring the option to purchase windstorm insurance through private insurance instead of government plans may provide more cost-effective solutions. So, remember to explore all avenues of savings when budgeting for your windstorm insurance cost.
