Insurance without Wind in Alabama
Insurance without wind is also called fire only insurance, hazard only insurance, or ex-wind insurance. Hazard insurance provides fire, lightning, theft, and liability coverage (depending on the policy you purchase). If you would like an ex-wind quote from Heritage Insurance, request a quote!
- Insurance without wind
- Fire only insurance
- Hazard only insurance
- Ex-wind insurance
Why Drop Wind Coverage?
Wind insurance makes up 2/3 the price of hazard insurance. That means if you pay $500 in hazard insurance, wind insurance would probably cost $1000. It might be an ok option to get insurance without wind coverage, depending on your financial situation. It’s never a problem finding insurance without wind in Alabama. Alfa, Farmers, State Farm, and many other admitted carriers provide this. Usually, they add an additional policy from Alabama Insurance Underwriting Association AIUA. Few agents are willing to write ex-wind without an additional wind policy because there’s not much money in it. If you do not think wind is a serious risk, this is one way to go.
Why is Wind Insurance So Expensive in Alabama?
Simple! Higher risk means higher price. Wind is more likely to damage a home in Alabama than anything. In 2004, Hurricane Ivan hit. In 2005, Hurricane Katrina hit. Insurance companies were losing money. Instead of taking more risk, they stopped providing wind insurance. Those who stayed in the area created a “wind deductible”. In the past, all deductibles were around $1000. After Ivan and Katrina, they went about 5% * the dwelling coverage. As time has passed (2016 at the time of writing), no serious hurricanes have hit the gulf coast. Insurance companies have been starting to come back. Some have lowered prices. Some have lowered deductibles. Others use a hurricane deductible or named storm insurance deductible.
How to Get Cheaper Wind Only Insurance
The cost of wind insurance in Alabama is high, especially around the coast. Your price is determined by a few things:
- Location – the closer to the water you are, the more you will pay.
- Age of home – The older your home, the more you will pay.If you have a mortgage on your home, the mortgage company will force you to get wind insurance.
If you have a mortgage on your home, the mortgage company will force you to get wind insurance. If you only have fire insurance and need wind insurance, Heritage Insurance can provide wind only insurance. Buying a home? Check out home buying tips for insurance.