Question: Business Insurance - Where can I get Wind Insurance for my Business?
The United States is a coastal country. Many businesses are located in areas considered "high risk" coastal areas by private insurers. These areas are "high risk" because they area is subject to flooding, rain, or wind damage. Businesses in these areas struggle to find affordable insurance.
Answer:
Many large commercial insurers have dropped out of the wind insurance market in many coastal states.
Finding a private insurer will be difficult and the premiums may be cost prohibitive. But, there is hope in the form of state sponsored "FAIR" plans or pooled windstorm coverage.
Seven coastal states (AL, FL, LA, MS, NC, SC, TX) offer some form of state-sponsored windstorm insurance pool. These secondary pools act as insurance of last resort for businesses and home owners who cannot secure insurance in the private market.
Note that we are discussing wind insurance in this article. Wind damage is generally considered as wind or hail damage. It is a separate coverage in some areas particularly affected by tropical storms and hurricanes. Businesses still need coverage for other losses such as fire, theft, and flood.
Each windstorm program is different. For example, the Texas Department of Insurance windstorm program applies only to certain coastal communities and requires an inspection of the property to be insured. Check with your state's department of insurance to determine what programs are available.
In addition, information on specific programs can be found at these links:
If your business is in another state, check with your state department of insurance for assistance. The departments often have comparisons and contacts to different commercial insurers with the state.
The United States is a coastal country. Many businesses are located in areas considered "high risk" coastal areas by private insurers. These areas are "high risk" because they area is subject to flooding, rain, or wind damage. Businesses in these areas struggle to find affordable insurance.
Answer:
Many large commercial insurers have dropped out of the wind insurance market in many coastal states.
Finding a private insurer will be difficult and the premiums may be cost prohibitive. But, there is hope in the form of state sponsored "FAIR" plans or pooled windstorm coverage.
Seven coastal states (AL, FL, LA, MS, NC, SC, TX) offer some form of state-sponsored windstorm insurance pool. These secondary pools act as insurance of last resort for businesses and home owners who cannot secure insurance in the private market.
Note that we are discussing wind insurance in this article. Wind damage is generally considered as wind or hail damage. It is a separate coverage in some areas particularly affected by tropical storms and hurricanes. Businesses still need coverage for other losses such as fire, theft, and flood.
Each windstorm program is different. For example, the Texas Department of Insurance windstorm program applies only to certain coastal communities and requires an inspection of the property to be insured. Check with your state's department of insurance to determine what programs are available.
In addition, information on specific programs can be found at these links:
- Alabama Insurance Underwriting Association
- The Citizens Property Insurance Corporation(Fla.)
- Louisiana Citizens Property Insurance Corporation
- Mississippi Windstorm Underwriting Association
- North Carolina Insurance Underwriting Association
- South Carolina Wind and Hail Underwriting Association
- Texas Windstorm Insurance Association
If your business is in another state, check with your state department of insurance for assistance. The departments often have comparisons and contacts to different commercial insurers with the state.
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