What Is Windstorm Insurance?
Hi. I’m Jerry, from Barbary Insurance, and I’m here to talk to you about windstorm insurance. Now, for many places in the country, windstorm is simply included in special form coverage, so it’s included in your homeowner’s policy or your renter’s policy. But, in a lot of states, particularly, in the Gulf region, windstorm is a special peril. Those states are prone to hurricanes, cyclones, things that can be unpredictable and catastrophic, and so it’s not really possible for an insurance company to absorb that under a normal policy. In those states, the states have set up state-backed windstorm insurance. So, the insurance is, actually, partially funded by the state and is there to help in the event of a catastrophe. In Florida, for instance, there is a catastrophe fund and that can be, you know, people buy their windstorm insurance from the State of Florida. Windstorm insurance is a little different in the way that it’s adjusted compared to other types of coverage, mostly because the deductible can be very different. The deductible on a windstorm is frequently two to three percent of the property value, not simply a flat dollar amount. So, if you’re in a state that is prone to heavy windstorms, you need windstorm insurance and you should probably buy it in conjunction with flood insurance if storm surge is an issue as well. And, that’s the basics of windstorm insurance. I’m Jerry Becerra, with Barbary Insurance. You can find out more about me and coverage at www.BarbaryInsurance.com.