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🌀 '''Wind insurance''' is a form of [[Definition:Property insurance | property insurance]] that specifically covers physical damage caused by wind events, including hurricanes, tornadoes, severe thunderstorms, and other high-wind occurrences. While standard [[Definition:Homeowners insurance | homeowners]] and [[Definition:Commercial property insurance | commercial property]] policies often include wind as a covered peril, the term "wind insurance" most frequently surfaces in coastal and hurricane-prone markets where [[Definition:Insurance carrier | carriers]] exclude or sublimit windstorm coverage, requiring property owners to obtain standalone wind policies from state-backed [[Definition:Residual market | residual market]] mechanisms such as the Texas Windstorm Insurance Association (TWIA) or Citizens Property Insurance Corporation in Florida.

📋 Standalone wind policies function much like standard property coverage but are scoped exclusively to the [[Definition:Named peril | wind peril]]. The insured selects coverage limits for the structure and contents, and the policy pays out when wind — including wind-driven rain that enters through openings created by the wind — causes covered damage. [[Definition:Deductible | Deductibles]] are typically structured as a percentage of the dwelling or building limit (often 2% to 5%), reflecting the [[Definition:Catastrophe risk | catastrophic]] nature of the exposure. [[Definition:Underwriting | Underwriting]] eligibility frequently depends on the property meeting specific [[Definition:Building code | building code]] and [[Definition:Wind mitigation | wind mitigation]] standards — inspectors may verify the presence of hurricane straps, impact-resistant glazing, and reinforced roof-to-wall connections before coverage is bound.

💡 Separating wind from the broader property policy allows the insurance market to price and manage this volatile peril with greater precision. For [[Definition:Reinsurance | reinsurers]] and [[Definition:Insurance-linked securities (ILS) | ILS]] investors, isolated wind exposure is easier to model and trade than bundled multi-peril portfolios, promoting more efficient [[Definition:Risk transfer | risk transfer]]. However, the split also creates coverage coordination challenges for policyholders — damage from a single storm may involve both wind and [[Definition:Flood insurance | flood]] perils, requiring claims under separate policies with different insurers, deductibles, and adjustment processes, a friction point that has spawned significant [[Definition:Wind versus water dispute | wind-versus-water litigation]].

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Wind damage]]
* [[Definition:Hurricane deductible]]
* [[Definition:Residual market]]
* [[Definition:Windstorm insurance]]
* [[Definition:Wind versus water dispute]]
* [[Definition:Catastrophe risk]]
{{Div col end}}

Definition:Wind insurance - Revision history

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