Does hazard insurance cover wind damage?

What hazard insurance means

Lenders require "hazard insurance" to protect the house that secures the loan. In practice, it is the dwelling coverage in your homeowners policy. There is usually not a separate product. Your lender is typically listed as mortgagee, which is why its name appears on claim checks.

Wind and hazard coverage

• Wind, including tornadoes and severe thunderstorm gusts, is a standard covered peril.
• The wind and hail deductible, often a percentage of the dwelling limit in Georgia, applies. See percentage deductibles.
• Some coastal policies exclude wind, which then needs separate coverage.
• Flood is never part of hazard insurance; it requires a separate flood policy, which lenders require in designated flood zones.

Claim checks and your lender

Because the lender is named on the policy, wind damage payments are often made out to you and the lender. Lenders may endorse smaller checks quickly and hold larger ones in a loss draft account, releasing money as repairs progress. See mortgage company insurance checks.

Watch your escrow

If premiums are paid from escrow, make sure the policy stays active. If coverage lapses, lenders can buy force placed insurance, which is usually more expensive and may protect only the lender's interest.

For the wind claim itself, see wind damage roof claims.