Understanding Hurricane & Wind Damage
Property insurance policies typically cover direct physical damage caused by windstorms. If the damage is obvious, such as entire roofs or walls blown away, determining coverage is easy, and the primary concern for property owners becomes the cost of repair or replacement to restore the property to its pre-damage condition.
Business owners may experience downtime, leading to the need to document business interruption losses. Homeowners may need to find alternative living arrangements while their homes are being repaired. However, windstorm damage insurance claims may also involve losses related to business inventory and personal property damage, in addition to building damage.
Approach and Recommendations
But what about water damage caused by windstorms? The policy language of the loss in question must be examined. Typically, if a windstorm causes a break in the building envelope, such as the roof or walls, and water enters the building through that breach, coverage will apply. This includes damage to the building itself, such as drywall damage, particle board expansion, electrical damage, and mold, as well as damage to contents.
Wind-driven rain can also be problematic, as many insurance companies may not pay unless there is a breach or opening in a structure. During a declared state of emergency in Florida, public adjuster fees are capped at 10% of the loss amount.
Is exterior paint covered on my home/structure if damaged by a windstorm?
Prior to the 2004/2005 hurricanes their was a section of Florida primary in the then high wind zone of Dade Broward Monroe and Palm Beach counties where there was a wind/paint exclusion. After 04/05 we stared to see these endorsement added to all coastal areas. This can be big expense particularly to large structures like condo towers. It is very likely that your policy has a provision that will not allow you to use this excluded cost to apply as an offset for the large hurricane deductible. This is added insult to injury in our opinion.
We had a thunderstorm at our home recently that included some high winds that caused severe damage. Following that, I noticed some leaks on my ceiling that were not there before. Am I covered?
It depends. If an inspection of your building reveals a breach in your roof membrane that allowed water to enter the building, for example, you should have coverage. If on the other hand, it is determined that you have a wear and tear or maintenance-type problem not caused by a windstorm, then typically your policy will exclude this type of loss.
