What is a fire and wind insurance policy?
Short answer. A fire and wind policy is a basic property policy, usually a dwelling fire form, that covers a home against fire and lightning, with windstorm and hail added as extended coverage, instead of the broad protection of a standard homeowners policy. Landlords, owners of vacant homes, and homes that cannot qualify for regular coverage often carry one, and roof claims on these policies are commonly paid at actual cash value.
Dwelling fire forms in brief
- Basic form: named perils, starting with fire, lightning and internal explosion. Windstorm and hail are often added as extended coverage. Losses are typically paid at actual cash value.
- Broad form: adds more named perils, such as falling objects, weight of ice and snow, and some water damage, and may pay replacement cost on the building.
- Special form: covers the building on an open perils basis, closer to a homeowners policy, usually at replacement cost.
What it usually lacks compared with homeowners insurance
- Personal liability, unless added.
- Theft coverage and broad contents coverage.
- Generous water damage and additional living expense coverage.
What it means for a roof claim
If the policy includes windstorm and hail, storm damage to the roof is covered. But on an actual cash value basis, depreciation is subtracted and never paid back, so an older roof may net only a fraction of the replacement cost after the deductible. If the policy covers only fire and lightning, a hail or wind claim is not covered at all. Check whether extended coverage is listed on the declarations page.
Who should look closely
- Landlords with single-family rentals.
- Owners of inherited or vacant homes. Many forms limit coverage after the home has been vacant for a set period, often 60 days, so read the vacancy clause.
- Homeowners placed with a state FAIR plan or a nonstandard insurer.
More: ACV vs RCV and wind damage claims.