Coastal Home Insurance: Understanding Wind Exclusions in NC

Coastal Home Insurance: Understanding Wind Exclusions in NC

If you own a home along the North Carolina coast, from the Outer Banks down through Beaufort, Pamlico, and Carteret Counties, there is a good chance your homeowners insurance policy excludes wind damage. Wind exclusions are one of the most misunderstood aspects of coastal home insurance, and they catch homeowners off guard every hurricane season.

At Harbor Insurance Agency in Chocowinity, we help coastal homeowners navigate wind exclusions, the NC FAIR Plan, and windstorm riders. Here is what you need to understand about wind coverage on the North Carolina coast.

What Is a Wind Exclusion?

A wind exclusion is a provision in your homeowners insurance policy that removes coverage for damage caused by wind. This means if a hurricane, tropical storm, tornado, or severe thunderstorm damages your roof, siding, windows, or any other part of your home, your standard homeowners policy will not pay for the repairs.

Wind exclusions are common in coastal counties throughout North Carolina. After decades of hurricane losses, many private insurance carriers have decided that the risk of insuring wind damage along the NC coast is too high. Rather than stop writing homeowners policies entirely, they exclude wind from the coverage and let homeowners purchase wind coverage separately.

Which Counties Are Affected?

Wind exclusions are most common in North Carolina's 18 coastal counties. These include Beaufort, Bertie, Brunswick, Camden, Carteret, Chowan, Craven, Currituck, Dare, Gates, Hertford, Hyde, New Hanover, Onslow, Pamlico, Pasquotank, Pender, Perquimans, Tyrrell, and Washington Counties. However, wind exclusions can also appear in policies for homes in counties further inland, particularly after active hurricane seasons.

If you live in Beaufort County, including Chocowinity, Washington, Bath, Belhaven, and Aurora, your homeowners policy may or may not include wind coverage depending on your carrier. Some carriers still write wind coverage in Beaufort County but with higher deductibles. Others exclude wind entirely. The only way to know is to read your declarations page carefully or ask your agent.

The NC FAIR Plan (Beach Plan)

What the FAIR Plan Covers

FAIR Plan policies cover wind and hail damage only. They do not replace your homeowners insurance. Think of it as a companion policy: your standard homeowners covers fire, theft, liability, water damage from plumbing, and other perils, while the FAIR Plan covers wind and hail damage specifically.

FAIR Plan coverage includes damage to the dwelling, other structures (like detached garages and sheds), and personal property. It can also include additional living expenses if wind damage makes your home uninhabitable.

FAIR Plan Deductibles

The FAIR Plan uses percentage-based deductibles for named storms (hurricanes and tropical storms). Deductible options are typically 1, 2, 3, or 5 percent of the coverage amount. For a home insured for $300,000, a 2 percent deductible means you pay the first $6,000 of wind damage out of pocket.

For wind damage not caused by a named storm (such as a thunderstorm or tornado), a standard dollar deductible applies, usually $500 or $1,000.

FAIR Plan Eligibility

To be eligible for the FAIR Plan, your property must be in an eligible area (generally the 18 coastal counties and surrounding areas), and you must show that you have been unable to obtain wind coverage through the private market. Your agent handles the eligibility process when placing your coverage.

Windstorm Riders and Endorsements

Some carriers offer windstorm riders or endorsements that add wind coverage back to a homeowners policy that would otherwise exclude it. These riders vary by carrier and are not always available, but when they are, they can be more convenient and sometimes less expensive than purchasing a separate FAIR Plan policy.

Ask your agent whether a windstorm rider is available from your homeowners carrier. If it is, compare the cost and coverage with a FAIR Plan policy to determine which is the better option for your situation.

How to Check If Your Policy Has a Wind Exclusion

Check your homeowners insurance declarations page. Look for language about wind or windstorm exclusions, named storm exclusions, or hurricane exclusions. If you see any of these, your policy does not cover wind damage and you need separate wind coverage.

Also look at your deductible section. Even if wind is not excluded, you may have a separate, higher deductible for wind or hurricane claims. This is different from a wind exclusion but still affects how much you pay out of pocket after a storm.

If you are unsure, call your agent. This is too important to guess about. A single phone call can confirm whether you have wind coverage and what your wind deductible is.

Wind Mitigation Discounts

• Hurricane straps or clips connecting your roof to the walls
• Impact-resistant roofing materials (Class 4 shingles)
• Reinforced garage doors rated for high winds
• Storm shutters or impact-resistant windows
• Secondary water barrier on the roof deck

A wind mitigation inspection can document these features and help you qualify for lower premiums. The inspection typically costs $75 to $150 and can save you hundreds per year on wind coverage.

The Difference Between Wind and Flood Damage

During a hurricane, both wind and flood damage often occur simultaneously, and they are covered by different policies. Wind coverage (your homeowners policy or FAIR Plan) pays for damage caused by wind: roof damage, blown-off siding, broken windows from flying debris. Flood coverage (NFIP or private flood) pays for damage caused by rising water: storm surge, river overflow, standing water entering your home.

After a major storm, determining which damage was caused by wind and which was caused by flooding can be complicated and contentious. This is why it is critical to have both wind and flood coverage. Without both policies, you may find yourself in a coverage dispute where your wind insurer says the damage was caused by flooding and your flood insurer says it was caused by wind.

Review Your Wind Coverage Today

Do not wait until a storm is approaching to find out whether your homeowners policy covers wind damage. Review your policy now, before hurricane season, and make sure you have adequate wind coverage in place.

At Harbor Insurance Agency, we can review your current homeowners policy, identify any wind exclusions, and help you fill the gap with FAIR Plan coverage or a windstorm rider. Contact us today for a free policy review.