The Need for Wind and Hail Insurance for Habitational Properties

As the Midwest steps into its stormy season, filled with windstorms and severe weather concerns, habitational properties, such as apartment complexes and townhome sites, need to be adequately protected with the coverage that is needed for habitational property. Clients in the habitational property field need coverage against the various elements that can rip through the region. Flood coverage is a must may be required and can be purchased, but since Illinois, Missouri, and Indiana all saw record storms this past summer, the need for wind and hail insurance is more critical now than ever before. Here’s a better look at this kind of habitational insurance protection and how it helps keep properties covered.

The Importance of Wind & Hail Insurance

The need to replace a roof that is either old or severely damaged is one of the largest expenses a property owner can take on. Roof loss leads to interior water damage and mold, which, in turn, cause loss of tenants and rental income. In addition to having property insurance to cover this hazard, property owners and managers need to conduct regular roof inspections and budget maintenance costs accordingly to prevent costly replacements.

All property owners should carry wind and hail insurance as they never know when and where damage from wind and hail will occur. In addition, properties in the Midwest—especially during the Spring and Fall—are much more prone to wind damage from tornadoes, increasing the importance of wind coverage.

What Brokers and Agents Selling Wind & Hail Insurance Should Know

It’s important to know that windstorm coverage and deductibles vary. There might be named storm deductibles in different regions in addition to a wind-hail deductible. These deductibles apply on a per location, per occurrence basis, a per building per occurrence basis, or a per-client per occurrence basis.

Currently, the windstorm market has hardened, meaning more insurance carriers have raised premiums, required higher deductibles or declined to offer wind coverage.   The market has been tougher in coastal areas, but in the Midwest, we are seeing similar issues with companies requiring anywhere from a  1%-5% Wind deductible.  Agents should be aware when reviewing renewal quotes that companies are applying these higher deductibles.

The Need for Wind & Hail Habitational Insurance for Apartment Owners

Certain areas in the United States have less wind than others, or less wind-related risks, and are therefore less prone to this type of damage. However, those locations should still plan to buy wind and hail insurance to protect against unplanned events.

About Mavon Insurance

At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed, and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (855) 248-1480.