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.

RELATED TERMS
  1. Windstorm Hazard

    The risk that a property will sustain losses due to strong winds. ...
  2. Beach Plan

    Property insurance for coastal property owners who have a high ...
  3. Rider

    A provision of an insurance policy that is purchased separately ...
  4. Use and Occupancy Insurance – U&O

    A type of insurance that covers against the loss of use of machinery ...
  5. Casualty Insurance

    A broad category of coverage against loss of property, damage ...
  6. Vandalism Endorsement

    An optional type of coverage that can be added to a basic hazard ...
Related Articles
  1. Insurance

    Hurricane Insurance Deductible Fact Sheet

    If you're a homeowner with property in a high-risk hurricane area, you need to understand the special details of your hurricane insurance deductible.
  2. Insurance

    Do You Need Casualty Insurance?

    Find out how different types of coverages can protect you and which policy is right for you.
  3. 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.
  4. 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?
  5. Insurance

    Homeowner's Insurance Guide: A Beginner's Overview

    Everything new homeowners need to know about insurance to protect their residence.
  6. Insurance

    How to Protect Your Income No Matter What

    What does it mean to insure your income? Here are a variety of ways to do it and some insights into when it might make sense to invest in income insurance.
  7. Managing Wealth

    6 Insurance Policies That Protect the Wealthy

    Here are six types of insurance that the wealthy use to protect their assets.
  8. Insurance

    Insurance Coverage: A Business Necessity

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

    Is Loan Protection Insurance Right For You?

    This coverage can keep you from defaulting on your loans when you're in financial trouble.
  10. Insurance

    The Beginner's Guide To Homeowners' Insurance

    Discover everything new homeowners need to know before they sign on the dotted line.
RELATED FAQS
  1. What is the average return on total revenue for the insurance sector?

    Learn about the three main segments of the insurance industry, and find out what the average return on revenues is for the ... Read Answer >>
  2. 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 >>
  3. What's the difference between casualty insurance and disability insurance?

    Casualty insurance is often called "property casualty insurance", and it provides insurance protection for your property ... Read Answer >>
  4. 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 >>
  5. How does the insurance sector work?

    Learn more about the insurance sector, a historically safe place for equity investors and the home of some of the largest ... Read Answer >>
  6. What are some examples of when insurance bundling is a bad idea?

    Learn about situations where insurance bundling may not be a favorable option. Bundling insurance is often a good idea, but ... Read Answer >>
Hot Definitions
  1. Trumponomics

    Trumponomics is a term for the economic policies of President Donald Trump.
  2. Universal Health Care Coverage

    An organized healthcare system that provides healthcare benefits to all persons in a specified region. Many countries, such ...
  3. Davos World Economic Forum

    The annual meeting of the World Economic Forum hosted at Davos—a small ski town in Switzerland—in January each year is among ...
  4. Smart Home

    A convenient home setup where appliances and devices can be automatically controlled remotely from anywhere in the world ...
  5. Efficient Frontier

    A set of optimal portfolios that offers the highest expected return for a defined level of risk or the lowest risk for a ...
  6. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
Trading Center