It's time to rethink windstorm insurance coverage

What is a windstorm? That might sound like a question with an obvious answer. And for the National Weather Service, it is.

But in New York, there isn't a single answer — there are many. More than 100, in fact. And it all depends on your homeowners insurance policy. And even then, the answer might not be so clear.

This might not seem like a big deal, but it is. Which definition your policy uses could impact the amount you have to pay out of pocket if a windstorm damages your property. And really, none of the options are cheap.

A lack of a standard definition ultimately affects windstorm deductibles. If the wind speed doesn't meet the definition of a windstorm outlined in your policy, you will likely see your standard deductible — anywhere between $500 and $2,000.

But if you have a policy where wind speeds match its definition of a windstorm, say goodbye to that standard deductible, and instead look at opening your wallet to pay a percentage of your home's value, typically 5 percent. That means if your home is worth $500,000, forget paying $500 or even $2,000. You'll be on the hook for $25,000.

All while your neighbors might be paying much less, for the same storm. All because they have different policies than you.

It's a roulette wheel of coverage — the kind where the odds remain in favor of the house. You know, the insurance companies.

New York isn't the South, which is prone to storms like hurricanes. But that doesn't mean our homes aren't susceptible to wind damage. Hurricane Sandy may have taken place a decade ago, but there have been other storms since then that, while smaller, could still trigger the much higher deductible, and make it nearly impossible for many homeowners to afford the repairs they most desperately need after a storm.

This is hardly a new problem, and there is a solution: Establish a standard definition for windstorms that would apply to all homeowners policies with a windstorm deductible.

Defining windstorms for the purposes of insurance coverage would not upend the underwriting of coastal homeowners policies. Instead, it would make it easier for New York homeowners to understand when a windstorm deductible might apply.

Albany has tried to solve this problem since long before Sandy, but simply hasn't gotten anywhere. Bill after bill has been introduced in the Legislature, and bill after bill has died there. Last session, a bill standardizing the definition of a windstorm passed the Assembly, but couldn't make its way out of the Senate.

This session, lawmakers are trying again. Assemblywoman Stacey Pheffer Amato and Sen. James Sanders Jr. have companion bills that are seeking a path to Gov. Kathy Hochul's desk. A.2866 and S.4199 would require insurance companies to make clear how much financial exposure a homeowner would have to windstorm damage.

It's easy to mistake a 5 percent deductible as meaning a homeowner would have to pay 5 percent of the overall cost of repairs — not 5 percent of the home's total value, which would be much more.

The bills would also standardize the "trigger" — the event that activates the policy in the first place. Uniform standards would make it easier for homeowners to compare different insurance offerings, and get the coverage they expect, and need. It's something both New Jersey and Connecticut have recently accomplished, and it would also help make sure deductibles are reasonable, and not something that's going to make the pain of dealing with a damaged home even worse.

Ask your elected officials if they will be a part of the solution. In the meantime, call your insurance agent and make sure you understand what triggers your windstorm deductible, and how much you could be paying out of pocket.

It's a surprise — and an added expense — none of us needs.

Gary Slavin is president-elect of Professional Insurance Agents of New York State, and an agent with MassMutual in Massapequa.