Most homeowners’ policies will cover damage from windstorm, hurricane and hail, as well as fire and lightening Most homeowners’ policies will also cover “sudden and accidental water damage,” but not storm surge . In coastal areas, insurance companies have refused to write insurance coverage for wind, and instead created Texas Windstorm Insurance Association or TWIA to cover damage from wind and hurricanes. Wind policies provide coverage for wind driven rain, and for water that enters through a damage in the structure such as damaged roofs, windows and walls. Wind policies typically provide coverage for every type of damage except rising water or storm surge.
Flood insurance is much more limited. It covers losses from rising water and storm surge. Flood coverage is underwritten by the federal government through the National Flood Insurance Program, even though the private insurers may sell and manage this type of insurance. Following Hurricane Ike, flood insurance often paid policy limits or close to it, primarily because the private insurance, such as Texas Windstorm Insurance Association or TWIA, Allstate, Farmers and State Farm, attempted to shirk their responsibilities under wind policies and blame the loss on flood coverage so the government would pay. Often it requires an engineer to determine whether the loss resulted from flood as opposed to wind and hurricane.