Everything starts with understanding why insurance companies cover storm damage on homes.
Insurance covers storm damage to homes because such damage is typically considered a “covered peril” under standard homeowners insurance policies. Here’s why:
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Risk Pooling: Insurance is based on the principle of pooling risk. Many homeowners pay premiums into a shared fund, and when a storm causes damage to one or more homes, the insurer uses that fund to cover the losses. This makes unexpected, potentially devastating expenses manageable for individuals.
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Contractual Agreement: When someone purchases homeowners insurance, they enter into a contract that lists what kinds of damages are covered. Storms—like wind, hail, lightning, or fallen trees—are commonly included unless specifically excluded (e.g., flood damage, which often requires separate coverage). Not all policies cover wind/hail either. Most policies that are in place because of a mortgage require this but not all.
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Protection of Property Value: Storms can cause major structural damage, or damage that can cause further damage in the future, that threatens the livability and value of a home. Insurance ensures that repairs can be made without forcing homeowners into financial ruin. In most cases damage that is not repaired leads to further damage in the home and the insurance company is trying to reduce the amount of damage that incurs so they cover important things like roofs, siding, etc..
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Regulatory Requirements: In many areas, mortgage lenders require borrowers to carry homeowners insurance to protect the investment in case of storm-related losses. When a home is damaged in a storm it leaves the home at risk for further damage. A mortgage lender requires insurance anytime a mortgage is pulled so they are guaranteed the asset is protected and they are not at risk of a loss because of it. Under most mortgages conditions, the homeowner is required to keep the home in good standing which means repairing storm damage that can cause further issues to the home. If a homeowner does not correct these issues that are required they can and will be in default of the mortgage conditions (this can even lead to foreclosure in worse case situation and loss of the home)
