What Does Wind and Hail Insurance Cover?

Wind and hail insurance is a component of property insurance designed to protect homeowners from the financial impact of severe weather events. This coverage addresses damage caused by powerful winds, including those from hurricanes, tornadoes, and thunderstorms, as well as the destructive force of hailstones. It serves as a financial safeguard, helping property owners recover from unexpected damage to their homes and belongings.

Wind and Hail Coverage in Standard Homeowners Policies

Wind and hail damage is typically included in standard homeowners insurance policies, such as the widely used HO-3 or the more comprehensive HO-5 forms. These policies generally protect against direct physical loss to the dwelling (the main structure) and other structures on the property, including detached buildings like garages, sheds, or fences. This coverage extends to repair or replacement costs if these structures are damaged by windstorms or hail.

For the dwelling and other structures, HO-3 and HO-5 policies typically provide “open perils” coverage. This means they cover all causes of damage unless specifically excluded, including windstorms and hail.

Coverage also usually extends to personal property inside the home if it is damaged by a covered wind or hail event. For example, if wind damages the roof, leading to water intrusion that harms furniture, personal property coverage would generally apply. However, HO-3 policies typically cover personal property only for “named perils,” meaning the cause of damage must be specifically listed. HO-5 policies offer broader “open perils” coverage for personal property, covering any cause of loss unless specifically excluded.

Specific Types of Wind and Hail Damage Covered

Wind and hail insurance covers various physical damages that can occur to a property.

Roof Damage: Common claims include missing or cracked shingles, bruising, or punctures caused by hail impacts. Coverage extends to the underlayment, roof decking, and flashing, which helps seal the roof.
Exterior Components: Siding and trim (vinyl, aluminum, wood) are covered for dents, cracks, holes from hail, or detachment due to high winds. Damage to gutters and downspouts, important for water drainage, is also included.
Windows and Doors: Broken glass, cracked frames, or impact damage to sills are generally covered. Severe wind events may also cover structural damage to walls or foundations if these load-bearing elements are compromised, impacting the property’s overall integrity.
Debris Removal: Costs for fallen trees, branches, or other wind-blown debris that directly damaged a covered structure are often covered.
Interior Damage: If exterior damage (e.g., a hole in the roof, broken window) allows rain or snow to enter, resulting interior damage (e.g., water stains, damage to flooring or personal belongings) is generally covered as a direct consequence of the initial covered peril.

Key Exclusions and Policy Limitations

While wind and hail coverage is broad, certain scenarios and damage types are typically excluded.

Wear and Tear/Neglect: Damage resulting from normal wear and tear, deterioration due to age, or a lack of maintenance is not covered, as insurance is designed for sudden, accidental events. Insurers expect homeowners to maintain their property, and claims may be denied if prior issues or neglect contributed to the damage. Pre-existing damage that occurred before the policy’s effective date or prior to the specific wind or hail event being claimed is also generally excluded.
Flood and Earth Movement: Flood damage, which includes water rising from the ground, storm surge, or water backing up through sewers or drains, is almost always excluded from standard policies. Separate flood insurance, often obtained through the National Flood Insurance Program (NFIP) or private insurers, is required for this type of protection. Similarly, earth movement, such as damage from earthquakes, landslides, or sinkholes, is typically excluded and requires a specific endorsement or a separate policy.
Indirect Damage/Pests: Damage solely from a power outage is generally not covered unless directly caused by a covered peril. Damage from pest infestations, including rodents or insects, is also typically excluded, even if a wind or hail event exacerbated the issue. Some policies may differentiate between functional and cosmetic damage, covering only damage that impairs the structure’s integrity or performance, rather than purely aesthetic issues.
High-Risk Area Exclusions: In areas at higher risk for severe weather, such as coastal regions, specific wind and hail deductibles may apply, which are often higher than standard deductibles. These might be known as “named storm” or “hurricane” deductibles. In some high-risk areas, wind and hail coverage may even be entirely excluded from standard homeowners policies, requiring homeowners to purchase it as a separate, stand-alone policy, sometimes through state-run insurance pools.

Deductibles and Reimbursement Methods

Understanding deductibles is important, as this is the amount a policyholder pays out-of-pocket before the insurance company covers a claim. For wind and hail damage, deductibles can be:

Standard Dollar Deductible: A fixed amount, such as $1,000, that applies to a claim.
Percentage-Based Deductible: Common in high-risk areas, calculated as a percentage of the home’s insured value (e.g., 1% to 5%, sometimes up to 10%). For example, a 2% wind/hail deductible on a $300,000 home results in a $6,000 deductible ($300,000 x 0.02).

Policies typically use one of two reimbursement methods:

Actual Cash Value (ACV): Pays for repair or replacement minus depreciation, which accounts for the item’s age, wear, and tear. The payout reflects the item’s depreciated value at the time of loss.
Replacement Cost Value (RCV): Pays the cost to repair or replace damaged property with new materials of similar kind and quality, without deducting for depreciation, up to policy limits. RCV generally provides more comprehensive financial protection for the homeowner. For RCV policies, an initial payment is often based on ACV, with the remaining depreciation paid once repairs are completed and receipts are submitted.