Windstorm & Hail Insurance
For those of us in the coastal counties, windstorm and hail coverage on a home or building can be costly and hard to acquire. The conditions are improving, but the majority of us must rely on the Texas Windstorm Insurance Association, TWIA.
The TWIA has received a lot of unwarranted criticism. Most of the TWIA claim occurrences are large hurricanes, tornadoes or hail storms. These occurrences generate a large number of claims. Thousands of claims are much more difficult to service compared to the single claim occurrence like a home fire. Our agency had several hundred TWIA claims due to Hurricane Ike. The TWIA did a good job on all but a few claims and the troubled claims were resolved.
The problem is TWIA has odd underwriting guidelines and requirements. Just remember, if you do any repair or addition to the outside, you need to check to see if a windstorm inspection is required.
Our three biggest coverage recommendations are:
- Buy the indirect loss endorsement. The endorsement is called form 320. It provides for
wind drivenrain coverage. Wind drivenrain damage occurs when there is no damage to the outside structure, but the force of the wind pushes rain through window seals and etc. causing damage to the inside.
During Hurricane Ike, I witnessed wind blowing rain through a solid wood door. There would be no coverage for the water damage
- Consider the Increased Cost in Construction endorsement. Its form number is 431. This endorsement will pay you if the building codes have changed and the code changes generate an increase in the construction costs. You can purchase from 5% to 25% of your dwelling amount in 5% increments. If you have a carport or an older home, please consider this endorsement. It is kind of expensive, but at loss time, you will be glad you have it
. You also need to be aware that you will have a deductible on your home and a deductible on your personal property. So when you choose your deductible amount keepin mind that if you insureyour home for $200,000 and your personal property for $120,000, then with a 2% deductible; your combined deductibles could be $6,400.