Windstorm Hazard

DEFINITION of 'Windstorm Hazard'

The risk that a property will sustain losses due to strong winds. Windstorm insurance, or storm insurance policy or endorsement, generally covers losses resulting from excessive wind and/or hail. Most homeowner's insurance policies exclude coverage for losses arising from windstorms, and if coverage is desired, a separate windstorm insurance policy or endorsement must be purchased.

BREAKING DOWN 'Windstorm Hazard'

Following several legal cases involving years of appeals after Hurricanes Katrina and Rita, it became evident that consumers require better education regarding the need for separate flood and wind peril policies. Insurance companies considered adding the wind peril to flood insurance policies, adding the flood peril to standard homeowners' policies, making improvements to the National Flood Insurance Program (NFIP), and requiring more strict building codes in coastal and floodplain regions. Currently, new and renewal homeowner's policy notifications include information regarding the absence of flood coverage in standard policies, and the need to consider this type of coverage.

RELATED TERMS
  1. Windstorm Insurance

    A special type of property-casualty insurance that protects policyholders ...
  2. Beach Plan

    Property insurance for coastal property owners who have a high ...
  3. Named Perils Insurance Policy

    A home insurance policy that only provides coverage on losses ...
  4. Flood Insurance

    A financial instrument that protects real property owners from ...
  5. Difference In Conditions (DIC) ...

    An insurance policy that provides expanded coverage for some ...
  6. Blanket Additional Insured Endorsement

    An insurance policy endorsement that automatically provides coverage ...
Related Articles
  1. Insurance

    Homeowner’s Insurance Gaps to Watch Out For

    Wind and flood damage. Sewer backups. Sinkholes. What coverage are you missing that could cost you a bundle in repairs?
  2. Insurance

    Find The Best Homeowners' Insurance

    Don't wait for the next Hurricane Sandy to find out if your homeowners' insurance really protects you. Test your insurance savvy now and get what you need.
  3. Entrepreneurship

    Insurance Coverage: A Business Necessity

    Don't go to work without this policy in place - especially if your work is in your home.
  4. Insurance

    How Much Homeowners Insurance Should You Carry?

    This breakdown of coverage into its component parts will provide the answer.
  5. Home & Auto

    The Importance Of Property Insurance

    Property insurance is important, but there's a lot you need to learn in order to get the proper coverage.
  6. Insurance

    Insurance Tips For Homeowners

    Use these simple ideas to save money and get better coverage for your house.
  7. Options & Futures

    For Top-Notch Insurance Coverage, Compare Quotes

    Find out how to use and compare policy options to get the best coverage at the best price.
  8. Savings

    4 Reasons Why Waiting To Buy Life Insurance Is a Bad Idea

    Understand the benefits of applying for and securing life insurance coverage while you are young and healthy, and learn the cost of waiting to get coverage.
  9. Insurance

    15 Insurance Policies You Don't Need

    Learn how to save money by saying "no" to unnecessary coverage.
  10. Insurance

    The Best Way to Insure Your Jewelry

    What you need to know to keep those baubles, bangles and beads safe.
RELATED FAQS
  1. Does renters insurance cover flooding?

    Learn how flooding from external factors is not covered under a renters insurance policy but how flooding from within the ... Read Answer >>
  2. What are some examples of industries that practice price discrimination?

    Understand the various types of insurance coverage offered in the insurance marketplace, and learn why each policy should ... Read Answer >>
  3. Does renters insurance cover water damage?

    Learn how renters insurance provides personal property coverage for items damaged by water only if the water is the result ... Read Answer >>
  4. Can my insurance company refuse me coverage?

    Insurance isn't always as straightforward as other products. Insurers can deny coverage in many different instances:Non-Renewal ... Read Answer >>
  5. Does renters insurance cover storage units?

    Learn how renters insurance coverage extends to a storage unit but is usually limited to a percentage of the total contents ... Read Answer >>
  6. How does the 80% rule for home insurance work, and how do capital improvements affect ...

    The 80% rule refers to the fact that most insurance companies will not fully cover the cost of damage to a house due to the ... Read Answer >>
Hot Definitions
  1. Physical Capital

    Physical capital is one of the three main factors of production in economic theory. It consists of manmade goods that assist ...
  2. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  3. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  4. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  5. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
Trading Center