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. Use and Occupancy Insurance – U&O

    A type of insurance that covers against the loss of use of machinery ...
  5. First Dollar Coverage

    An insurance policy feature that provides full coverage for the ...
  6. Uninsurable Peril

    Events or situations that insurance coverage is not available ...
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

    What Is and Isn't Covered by Homeowners Insurance

    Understanding what your insurance covers can be confusing. Learn what almost all insurance policies have in common so you're prepared if disaster strikes.
  3. Insurance

    6 Types Of Insurance Coverage You Didn't Think You Needed

    These different types of insurance coverage can be beneficial, but they're often overlooked and misunderstood.
  4. Insurance

    5 Myths About Homeowner's Insurance

    Many homeowners believe their policies will cover them for any and all damages, but the reality can be an expensive surprise.
  5. Insurance

    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 for Millennials

    Four insurance must-haves – and one maybe – for Generation Y
  7. Insurance

    15 Insurance Policies You Don't Need

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

    What's That Home's Insurance Risk?

    If you're considering a new home, use these insider tips to ferret out its insurance risk before you buy.
  9. Insurance

    Insurance, Excess Insurance and Reinsurance: What's the Difference? (ALL)

    Understanding the differences might help you avoid being overinsured or underinsured.
RELATED FAQS
  1. 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 >>
  2. What are some examples of unexpected exclusions in a home insurance policy?

    Learn about commonly excluded perils with different standard insurance policies. Explore events that homeowners should consider ... Read Answer >>
  3. Can your insurance company cancel your policy without notice?

    Learn about your rights as an insured when it comes to your insurance policy being canceled, including how to access your ... Read Answer >>
Hot Definitions
  1. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations ...
  2. Index

    A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is a hypothetical ...
  3. Return on Market Value of Equity - ROME

    Return on market value of equity (ROME) is a comparative measure typically used by analysts to identify companies that generate ...
  4. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder ...
  5. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers ...
  6. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities ...
Trading Center