Most Texas homeowners never have to think about wind insurance, it’s included with their home policy. When you see the wind / hail deductible listed with an amount or percentage next to it, this indicates your home policy covers it. Those Texans who own homes along our Gulf Coast, however, do need to think about wind insurance. Many home insurance companies don’t include wind coverage so those homeowners have to look elsewhere for this coverage.
Coastal homeowners whose home policies don’t include wind coverage are able to procure that through the Texas Windstorm Insurance Association (see www.twia.org). Wind insurance is designed to cover homes in the event they are damaged by any type of wind event including straight line, tropical storm, hurricane or tornadoes. It also covers damage caused by hail. Wind coverage is similar to flood insurance in two respects; there are two parts or types of coverage.
Structure: The first type of coverage provided by a Texas wind insurance policy is for the home or structure. This applies to damage to the roof, siding, or any part of the home that’s damaged by any kind of wind or hail. Deductibles may be stated as a percentage of the dwelling amount (1%, 2%, etc.) or as a dollar amount ($1,000, $2,500, etc.). Wind coverage on the structure is required coverage by any mortgage company when the location of the home is located along the Texas coastline.
Contents: The second type of coverage is for contents or personal property including furniture, appliances, clothing, electronics, etc. Coverage for contents is not required by mortgage companies and will have a separate deductible from the home or structure.
Coverage for contents is needed in the event the home’s compromised in such a way that allows a homeowner’s personal property to be damaged by wind, rain, or hail. If contents coverage is not elected, then the damage is not covered and your home insurance policy won’t coverage personal property if damaged as a result of a wind related event.
One of the things to keep in mind if you’re buying a primary or secondary home in a coastal county is the cost of insurance. Many buyers are surprised to learn they need wind and possibly flood insurance in addition to home insurance. The cost can quickly add up and be much more than the buyer anticipates. It’s always better to find out before an offer is made what the home policy will cover, what additional insurance may be needed, and the combined cost of all policies than when trying to come up with extra funds for a closing.
What do you think? Share your questions, comments,, and experiences with me on my Facebook, Google +, and LinkedIn pages. I’d love to hear from you!