Do I need separate wind and hail insurance for my apartment building?

In most parts of the country, wind and hail damage is covered under your standard commercial property policy. However, in coastal areas, hurricane-prone states, and some tornado-prone regions, insurers may exclude wind and hail from the base property policy or offer it only with a high percentage deductible.

When wind is excluded, apartment owners must purchase a separate wind-only or wind and hail policy to fill the gap. In some states, a state-sponsored wind pool or plan of last resort is the only option for coastal properties. These wind pools provide necessary coverage but may have higher premiums, lower limits, or fewer coverage features than the standard market. Examples include the Texas Windstorm Insurance Association (TWIA, governed by Tex. Ins. Code Chapter 2210), Citizens Property Insurance Corporation in Florida (created by Fla. Stat. § 627.351), and the Louisiana Citizens Property Insurance Corporation. Properties insured through TWIA must meet the Texas Department of Insurance's windstorm building code requirements (28 TAC § 5.4001 et seq.) and obtain a WPI-8 certificate of compliance.

Wind and hail deductibles in storm-prone areas are typically expressed as a percentage of the insured value (commonly 2% to 5%), rather than a flat dollar amount. On a $5,000,000 building, a 2% wind deductible means the owner pays the first $100,000 of wind damage. This is significantly higher than the typical $5,000 to $25,000 flat deductible for other property perils. Understanding whether wind is included in or excluded from your property policy, and the applicable deductible structure, is critical for apartment owners in storm-exposed regions.