Wind-Only insurance coverage may be needed depending upon where a property is located. While most dwellings on the Florida mainland are able to be covered by policies that insure against a list of perils like wind, fire, lightning, etc. (multi-peril insurance), dwellings on Florida’s barrier islands and certain other coastal areas require two separate policies. They still must secure a multi-peril insurance policy, but that policy specifically excludes damages caused by windstorm (thunderstorms, tropical storms, hurricanes, high wind, etc.). A Wind-Only policy is then used to make sure that the home or condominium is protected in the event of loss due to wind.
Did you know that Florida was among the first states where a percentage based wind deductible came into widespread use? A percentage deductible differs from a traditional deductible in that it doesn’t have an assigned dollar value like $500 or $1000. Instead, it is typically expressed as 2%, 3% or 5% of the “building” coverage amount. So, if a home costs $250,000 to rebuild in the event of a total loss and it has a 2% Wind Deductible, that deductible is $5,000, or 2% of $250,000.