Windstorm Insurance

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DEFINITION of 'Windstorm Insurance'

A special type of property-casualty insurance that protects policyholders from property damage caused by windstorms. Windstorm insurance is usually offered in the form of a rider on a standard casualty insurance policy through the extended coverage endorsement. It is one of the subsets of storm insurance.

BREAKING DOWN 'Windstorm Insurance'

Most types of windstorms, such as hurricanes and cyclones, are not typically covered in standard homeowners' insurance policies. Those who live in areas susceptible to this type of peril must therefore purchase this additional coverage in order to protect themselves. Residents of coastal states and midwestern states where tornadoes are common fall into this category.

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RELATED FAQS
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    In the United States, and most developed nations, regulators impose required statutory capital reserve ratios on insurance ... Read Full Answer >>
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    Like all equity investments, insurance companies present investors with market risk. Insurance companies, like banks, also ... Read Full Answer >>
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    The main factors that impact share prices in the insurance sector are interest rates, earnings and actuarial risk. In the ... Read Full Answer >>
  4. Why do insurance policies have deductibles?

    Insurance policies have deductibles for behavioral and financial reasons. Moral Hazards Deductibles mitigate the behavioral ... Read Full Answer >>
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    Partnership insurance is actually quite common. Most of the time, partners buy insurance to safeguard against the possibility ... Read Full Answer >>
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