Storm damage insurance coverage typically protects homeowners against losses caused by wind, hail, lightning and the weight of snow or ice, but standard policies commonly exclude flooding and other forms of water damage.
The protection available depends on the cause of the damage, the terms of the policy and the deductible that applies. In some areas, homeowners may also need separate cover for hurricanes, windstorms, sewer backups or floods.
What storm damage is usually covered?
Wind damage caused by tornadoes, hurricanes and winter storms is generally covered by standard home insurance. This can include damage to roofs, siding and other parts of a property, as well as losses caused by objects blown into the home.
However, policies in coastal areas may carry a separate hurricane or windstorm deductible. Some insurers may exclude windstorm damage altogether, requiring homeowners to buy a separate policy or add an endorsement.
Hail damage is also usually covered. Repairs may be paid for when hail dents, cracks or punctures siding or other parts of a property, although separate wind and hail deductibles may apply. Some insurers also restrict cover for older roofs.
Lightning strikes can lead to cover for fire, smoke and power-surge damage. Repairs or replacements for electrical items such as televisions and refrigerators may be included, depending on the cause of the surge and the policy wording.
A healthy tree or branch brought down by wind or lightning may be covered if it damages the home. The same protection generally does not apply to dead or rotting trees that should have been maintained or removed.
Tree removal is usually covered only when the fallen tree has damaged the house. A tree blocking a driveway may also qualify, while removal after a tree falls without causing damage to the property is generally the homeowner’s responsibility.
Heavy snow that causes part of a roof to collapse may be covered, as may damage caused by a pipe freezing and suddenly bursting during a winter storm.
Storm damage insurance coverage and common exclusions
Flooding is not normally covered by standard home insurance, even when it follows heavy rainfall from a storm or a hurricane. Separate flood cover may be available through the National Flood Insurance Program or private insurers.
Sewer backups are also commonly excluded. Water entering through drains, toilets or sump pumps may require an additional sewer-backup endorsement before repair costs can be claimed.
Earth movement, including landslides and earthquakes, is generally excluded as well. A separate Difference in Conditions policy may provide cover for landslides, mudflows, earthquakes and floods.
Insurers are unlikely to cover gradual deterioration or poor maintenance. For example, a leak from an old roof with previously damaged shingles may be rejected if the storm merely exposed an existing problem.
Roof and water damage after a storm
Roof damage caused by wind, hail, lightning or falling objects such as tree branches and garden furniture is usually covered, subject to the policy’s exclusions and deductible. Flooding, wear and tear and poor maintenance may be excluded, while some policies also rule out windstorm damage in particular locations.
Water entering through a newly damaged roof or window may be covered when the opening was caused by an insured event, such as a fallen tree. Damage from a frozen pipe that bursts during a winter storm is also typically covered.
Water that rises and floods a property is generally excluded without separate flood insurance. Water backing up through an outside sewer or drain is usually excluded unless additional cover has been purchased.
Hurricane and tornado damage is often covered when it results from wind or wind-borne objects. Flooding caused by either type of storm is normally outside standard cover, and homeowners in areas at higher risk may face a separate hurricane or windstorm deductible.
How storm deductibles work
A storm deductible is the amount a homeowner must pay towards an eligible claim before insurance contributes. It may be a fixed sum or a percentage of the insured value of the property, typically between 1% and 10%, and can be higher than the standard deductible.
For example, a home insured for 300,000 dollars with a five per cent hurricane deductible would leave the homeowner responsible for the first 15,000 dollars of covered hurricane damage.
A hurricane deductible may apply only when damage is caused by a named storm or when the storm reaches a specified intensity. A windstorm deductible can apply to any wind-related damage.
Separate storm deductibles are used in 19 states and Washington DC, although not every policy in those areas includes one. Homeowners should check the declarations page of their policy or contact their insurer to find out which deductible applies.
Making a storm damage insurance claim
Once it is safe to inspect the property, homeowners should photograph and film all damage and make a detailed record of damaged belongings. The insurer should then be contacted to begin the claims process.
Receipts for emergency repairs should be kept and submitted with the claim. If the property becomes uninhabitable, receipts for hotels, meals and other temporary living costs may be needed for a loss-of-use claim.
Written estimates should be obtained from reputable, licensed contractors. Homeowners should also be cautious of contractors offering repairs after a storm and research them before agreeing to work.
Where an insurance adjuster visits, the homeowner should co-operate with the investigation and accompany the adjuster around the property to explain the damage. Copies of all documents, receipts and communications should be retained until the claim is settled.
The deadline for making a claim is commonly one year after the storm, but it can range from 30 days to two years depending on the insurer, policy and state law.
Any payment for a new roof will depend on the extent of the damage, the deductible and whether the policy pays replacement cost or the roof’s actual cash value. A claim may or may not affect future premiums, depending on the claim and the insurer.
Checking cover before the next storm
Homeowners should review their policy to ensure the dwelling cover is sufficient to meet the property’s replacement cost. They should also check whether a separate storm deductible applies and how much they could have to pay themselves.
A home inventory can help record personal possessions, speed up the claims process and show whether personal-property cover is adequate. Flood, sewer-backup and other optional protections may also be worth considering where standard insurance excludes them.
Comparing quotes from several insurers can help homeowners identify the cover they need at a lower premium, while checking exclusions in advance can reduce the risk of unexpected repair bills after severe weather.
