North Carolina Excess Wind Insurance
Living in coastal North Carolina means your home is exposed to severe weather, especially strong winds and hurricanes. If you own a high-value home, protecting your property is a top priority. Your standard wind and hail insurance policy may only cover up to $750,000. But what if your home is worth more? That’s where an Excess Wind and Hail Insurance policy comes in.
At The Huneycutt Group, we help you secure the additional protection they need.
Why You Might Need Excess Wind And Hail Insurance
If your home’s replacement cost is over $750,000, your standard wind insurance policy may not be enough to cover the total cost of rebuilding after a windstorm.
In North Carolina, the NCIUA (North Carolina Insurance Underwriting Association), or beach plan, provides coverage up to $750,000, but what about the rest?
For high-value homes, mortgage companies often require excess wind insurance to safeguard their investment.
This extra coverage steps in where your standard wind and hail policy leaves off, providing you with peace of mind that your home is fully protected.
What An Excess Wind And Hail Insurance Policy Covers
An excess wind insurance policy covers the portion of your home’s replacement value that exceeds the limits of your primary wind and hail insurance. For instance, if it would cost $1.5 million to rebuild your home, your primary policy may only cover the first $750,000.
An excess wind policy will cover the additional $750,000, ensuring that you’re not left footing the bill following a catastrophic event.
In addition to structural damage, excess wind insurance may also cover detached structures on your property, such as garages, guesthouses, and sheds, depending on the policy.
Factors That Affect Your Rate
Location
Coastal homes are at higher risk, so expect higher premiums in areas prone to hurricanes and windstorms.
Home Replacement Value
The higher the value of your home, the more coverage you’ll need, which can increase your rates.
Claim History
If your property has a history of wind or storm damage, insurers may charge a higher premium to account for the increased risk.
Types Of Deductibles Available
With excess wind insurance, you’ll typically choose between two types of deductibles.
Percentage Deductible
A deductible based on a percentage of your home’s insured value. For example, if your home is insured for $1 million and your deductible is 2%, you’d be responsible for the first $20,000 of any wind damage claim.
Flat Deductible
A fixed dollar amount you agree to pay before your insurance kicks in. This option offers more predictability for homeowners when budgeting for potential damage.
Choosing the right deductible will depend on your financial situation and risk tolerance. The Huneycutt Group can help guide you through these decisions to find the best fit for your needs.
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Excess Wind Insurance NC FAQs
Does homeowners insurance cover wind and hail damage?
Yes, standard homeowners insurance policies often cover wind and hail damage. However, in areas that are prone to severe windstorms or hurricanes, such as coastal North Carolina, wind and hail coverage may be excluded from your standard policy and require a separate windstorm or wind and hail insurance policy.
How much wind insurance coverage do I need?
The amount of wind insurance coverage you need depends on the replacement value of your home and any structures on your property. For high-value homes, standard wind insurance typically covers up to $750,000 through the NCIUA (North Carolina Insurance Underwriting Association). If the cost to rebuild your home is higher than that, you’ll need excess wind insurance to cover the remaining value.
Is wind and hail insurance required in NC?
If your home is located in a high-risk area, mortgage lenders will typically require you to have wind and hail coverage as part of your insurance policy to protect their investment.
