Storm damage turns into debt when the repair bill lands in a part of the loss the policy was not set up to pay: a wind and hail deductible written as a percentage, a roof settled at its depreciated value, water that came up through a floor drain, or a tree that fell without hitting the house. Each of those gaps is written into the policy long before the storm arrives, so the cheapest time to find one is before the storm, not after it.
A national survey released this month puts numbers on how often that happens. Hippo, a home insurer, published its third annual Extreme Weather Report on October 6, based on a survey of 1,047 U.S. homeowners that the research firm Centiment conducted in July 2026, and Insurance Journal covered it the next day. Among the findings:
- About half of homeowners paid out of pocket for weather damage in the past three years.
- Of those who paid, 21% spent $2,000 or more and 9% spent $5,000 or more.
- 22% of those who paid are still carrying debt from the damage, and 71% of that group has carried it for two years or longer.
- 39% had assumed something was covered and learned it was not, and 19% of everyone surveyed said that mistake cost them money.
- 55% could not name their deductible without looking it up.
- 85% watch local weather alerts, but only 21% reviewed their insurance coverage in the past year.
That last pair says a lot. Most households watch the radar far more closely than the policy that decides who pays for what the radar shows.
Why It Hits Close to Home in Illinois This Year
Illinois has had a year that makes those numbers feel local. The state broke its record for tornadoes in a single year by June, and by August it had more than 200 confirmed tornadoes, well past the 142 recorded in 2024, according to reinsurance broker figures reported by Insurance Business. The derecho that crossed the Midwest from August 9 to 12 brought straight-line winds near 90 mph to Chicago’s south suburbs and northwest Indiana and caused more than 1.1 million power outages across Illinois, Indiana and Ohio.
Nationally, the first half of 2026 brought 12 weather and climate disasters that each caused at least $1 billion in damage, and eight of them were severe storms, according to Climate Central, which took over the billion-dollar disaster database NOAA discontinued in 2025. The year before set a record with 21 billion-dollar severe storms.
In northern Illinois, the storms that do the most damage to homes bring wind, hail and heavy rain. Wind is also the weather homeowners say they are least ready for: 58% named high winds in the same survey, more than any other kind of weather. And wind and hail are exactly where many policies now put their largest deductibles.
Six Places the Out-of-Pocket Money Comes From
When a storm leaves a homeowner with a large bill, it usually traces back to one of six places. None of them are hidden. They are printed on the declarations page or in the endorsements attached to it, and most people have not looked at those pages since the policy was bought. The table shows where common storm losses are usually paid from and where the gaps tend to be, and the sections below take the six gaps one at a time.
| Storm loss | Usually paid by | Where the gap is |
|---|---|---|
| Wind or hail damage to the roof or siding | Homeowners policy | A percentage wind and hail deductible, a roof settled at depreciated value, or a cosmetic damage exclusion |
| Rain through an opening the storm made | Homeowners policy | Leaks from wear, old flashing or put-off maintenance are usually excluded |
| Tree falls on the house | Homeowners policy | Hauling the tree away is capped, and a tree that hits nothing is usually not covered |
| Water backs up through a drain or sump | Water backup endorsement | Not on many policies unless added, and limits can be low |
| Surface water flows in from outside | Flood policy | Excluded from homeowners policies, and new flood policies usually wait 30 days |
| Food spoils in a long outage | Endorsement on some policies | Outages that start away from your property are often excluded |
| Hotel and meals during repairs | Loss of use coverage | Pays only when the damage itself is covered |
| Code upgrades during repairs | Ordinance or law coverage | Often limited to 10% of the dwelling limit |
1. A Wind and Hail Deductible Written as a Percentage
Many homeowners policies in Illinois now carry two deductibles. One is a flat amount, often $1,000 or $2,500, for most kinds of losses. The other applies only to wind and hail and is written as a percentage of the dwelling limit, commonly 1% or 2%, and sometimes more.
The percentage is where the surprise comes from. On a home insured for $450,000, a 2% wind and hail deductible is $9,000. The homeowner pays the first $9,000 of a roof claim, so a hailstorm that does $8,000 of damage produces no claim payment at all. Someone who remembers “a $1,000 deductible” may be remembering the wrong line.
A higher deductible can be a sensible trade for a lower premium, as long as the household could pay it without borrowing. Our guide to high deductible home insurance covers that trade-off, and our article on roof insurance in Chicago explains how roof and hail deductibles work.
2. A Roof Settled at Its Depreciated Value
Replacement cost coverage pays what it costs to put on a new roof of like kind and quality. Many policies now treat roofs differently once they pass a certain age, either paying actual cash value, which subtracts depreciation, or paying a declining share of the cost on a schedule tied to the roof’s age.
Here is how that plays out. Suppose a roof costs $18,000 to replace and the insurer treats it as 60% depreciated. An actual cash value settlement starts at $7,200, and the deductible comes off that figure. With a $2,500 deductible, the check is $4,700, and the rest of the $18,000 is the homeowner’s to cover. Some policies also exclude cosmetic hail damage, such as dents in metal roofing, gutters or siding that do not let water in. Our guide to replacement cost vs. actual cash value roof coverage explains how the settlement is figured.
3. Water That Came From Below or From Outside
Homeowners insurance sorts water damage by where the water came from. Rain that blows in through an opening the storm tore in the roof or a wall is usually covered. Water that backs up through a floor drain or overflows the sump pit is covered only if the policy has a water backup endorsement, and that endorsement has its own limit, sometimes only a few thousand dollars unless a higher amount was chosen. Surface water that flows in from outside is flood, which homeowners policies exclude and a separate flood policy covers.
One heavy rain can produce all three in the same basement, and each part of the damage is judged by its own source. Our article on sewer backup vs. flood insurance walks through how that sorting works. Timing matters for flood coverage in particular: a new National Flood Insurance Program policy generally takes effect 30 days after purchase, so a policy bought when the forecast turns is usually too late for that storm.
Winter adds its own version of the problem. Water from an ice dam that backs up under the shingles is generally covered as interior damage, while removing the ice itself is not. Our ice dam guide covers prevention and claims.
4. Trees That Fall Without Hitting Anything
When a tree falls on the house, the damage to the house is handled like any other wind loss, subject to the deductible. Hauling the tree away is another matter. A widely used policy form pays a limited amount for tree removal, $1,000 per storm and no more than $500 per tree, and only when the tree damaged a covered structure or, on some policies, blocks the driveway.
A tree that comes down across the yard without hitting anything is usually the homeowner’s to remove, and trees and landscaping themselves are generally not covered for wind damage. After a derecho, when tree crews are booked for weeks, removing one large tree can cost more than the policy’s entire tree allowance.
5. Spoiled Food, Hotel Bills and the Days In Between
A long outage brings smaller costs that add up. Food lost when the power fails somewhere other than your property is often excluded, or covered only by an endorsement with a small limit. Loss of use coverage, also called additional living expense, pays reasonable extra costs when a covered loss makes the home unlivable. It follows the main coverage, though: if the damage itself is not covered, such as surface flooding with no flood policy in place, the hotel bill is not covered either.
6. Code Upgrades on Older Homes
Many homes on the North Shore and in Chicago were built long before current building codes. When storm damage forces a repair, the village or city may require the repaired portion to meet today’s code, which can mean new roof decking, updated wiring in a damaged wall, or replacing more than the damaged area. Ordinance or law coverage pays for those required upgrades, and many policies include only a modest amount, often 10% of the dwelling limit. Owners of older homes often need more, as our guide to insuring older homes on the North Shore explains.
Why Disaster Aid Is Not a Backup Plan
Some homeowners count on government help to fill the gap after a big storm. Federal help for homeowners depends on a federal disaster declaration, and much of it comes as loans. SBA disaster loans can lend up to $500,000 to repair a primary home and up to $100,000 to replace belongings, at low rates over long terms. That help is valuable, but it is still debt, which is the outcome the survey describes.
The household side of the math is tight as well. In the Federal Reserve’s most recent survey of household finances, 63% of adults said they could cover a $400 emergency expense with cash or its equivalent. A $9,000 wind deductible is a different kind of problem, and only 22% of the homeowners in the weather survey said they were financially prepared for an unexpected weather repair.
A Pre-Storm Policy Check
Finding these gaps does not require shopping for a new policy. It requires knowing what the current one says before the next storm season, not after the next storm. Here is the check we suggest, in order:
- Find both deductibles. Look for an all-other-perils deductible and a separate wind and hail deductible. If the wind and hail deductible is a percentage, multiply it by your dwelling limit and write down the dollar figure.
- Check how the roof is valued. Look for an actual cash value roof endorsement or a roof payment schedule, and confirm that the roof age your insurer has on file is right.
- Check water backup coverage. Confirm it is on the policy and that the limit would pay to clean up and restore a finished basement, not just pump it out.
- Decide about flood coverage early. With the usual 30-day wait, the decision has to be made well before rain is in the forecast.
- Check ordinance or law and loss of use limits. These matter most for older homes and for households that would need somewhere else to live for months.
- Photograph the house and its contents now. A dated record of the roof, siding, basement and belongings makes a storm claim easier to document. Our home inventory guide explains how.
- Set aside the real deductible. Size the emergency fund to the wind and hail deductible, not the smaller one.
- Do the inexpensive prevention. Clean gutters and downspouts, trim limbs over the roof, test the sump pump and add a battery backup, and before replacing a roof, ask whether your insurer gives a credit for impact-resistant shingles.
After a Storm: What Illinois Law Says About Contractors
Big storms bring door-to-door roofers, and the Illinois Home Repair and Remodeling Act sets specific rules for them:
- No deductible deals. A contractor may not advertise or promise to pay or rebate any part of your insurance deductible to win the job, and that includes a discount or allowance against the price.
- A written contract first. For home repair work over $1,000, the contractor must give you a written contract or work order stating the total cost before work begins, along with the state’s “Home Repair: Know Your Consumer Rights” pamphlet.
- A roofing license number. Contracts, bids and advertisements for roofing work must show the contractor’s Illinois roofing license name and number.
- A way out if the claim is denied. If you sign a contract to be paid from insurance proceeds, you can cancel it in writing before midnight on whichever comes first: the fifth business day after your insurer tells you in writing that all or part of the claim is not covered, or the thirtieth business day after the insurer receives your completed proof of loss.
Beyond the law, the practical order after a storm is simple: make the house safe, stop further damage with temporary repairs and keep the receipts, photograph everything before cleanup, and report the claim before signing a repair contract. Our guide on when to file a claim and when to pay for it yourself covers the deductible decision, and our article on having an agency in your corner after a storm covers the claim itself.
Where an Independent Agency Fits
One more finding stands out. Only 12% of homeowners in the survey count their insurance agent among their two most trusted sources of storm advice, far behind local meteorologists at 65% and friends and family at 31%. An agent cannot tell you when the storm is coming. An agent can tell you, from your own policy, what the storm would cost you, and that conversation is most useful before the storm.
Longmeadow is an independent agency, so a review does not stop at explaining one company’s policy. If a deductible, a roof settlement provision or a water backup limit is out of line with what your household could absorb, we can compare how other insurance companies would handle the same home. Call or text 847.242.1040 to set up a review.
Frequently Asked Questions
Does homeowners insurance cover storm damage in Illinois?
Generally yes, for the main storm causes. A standard homeowners policy typically covers damage from wind, hail, lightning and trees blown onto the house, subject to the deductible and the policy’s terms. Surface flooding is excluded and needs a separate flood policy, water that backs up through drains needs a water backup endorsement, and roof settlements can be reduced by depreciation on some policies.
What is a wind and hail deductible?
It is a separate deductible that applies only to wind and hail losses. Many Illinois policies write it as a percentage of the dwelling limit, often 1% or 2%. On a home insured for $450,000, a 2% deductible means the homeowner pays the first $9,000 of a wind or hail claim.
Who pays to remove a tree that fell in a storm?
If the tree damaged the house or another covered structure, getting it off the structure is generally part of the covered repair, and many policies pay a limited amount to haul it away, often $500 per tree and $1,000 per storm. If the tree fell in the yard without damaging anything covered, removal is usually the homeowner’s cost, although some policies pay when a fallen tree blocks the driveway.
Can a roofer pay my deductible in Illinois?
No. Under the Illinois Home Repair and Remodeling Act, a contractor may not advertise or promise to pay or rebate any part of an insurance deductible to win the job, and that includes offering a discount or allowance against the price.
How long does a new flood insurance policy take to start?
A new National Flood Insurance Program policy generally takes effect 30 days after purchase. There are exceptions, such as a policy bought in connection with getting or renewing a mortgage, but in most cases flood coverage has to be in place well before a storm is forecast.
Will a storm claim raise my homeowners premium?
It can. Insurers look at claim history when they price and renew policies, and they treat different kinds of claims differently. A claim that barely exceeds the deductible may not be worth filing, while a large roof or water loss usually is. Our guide on when to file a claim walks through that decision.
What should I check on my policy before storm season?
Five things: the wind and hail deductible in dollars, how the roof is valued, whether water backup coverage is on the policy and what its limit is, whether a flood policy makes sense for the property, and the ordinance or law and loss of use limits.
This article provides general educational information, not a coverage determination or legal advice. Deductibles, roof settlement terms, endorsements, limits and exclusions vary by insurance company and policy, and coverage and claim payment depend on the applicable policy and the facts of the loss. Survey and storm figures are as reported by the sources linked above.
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