Wind Deductible Buyback

Given the coastal proximity of many of our clients, Wind and Hurricane deductibles can be common on most Commercial property insurance policies. These deductibles are typically stated as a percentage, and it is not uncommon for these policies to carry a 2, 3 or even 5% Wind Deductible (in some rare instances, even higher). Unfortunately, at times there can be a misunderstanding that these percentage deductibles are calculated on the actual incurred Wind loss when in reality they are actually applied to the total insured value of the property in question at the time of loss. Given today’s soaring values, these small percentages can turn into substantial dollars at the time of a Wind loss.

To address this concern, the insurance industry has developed Wind Deductible Buyback coverage, which serves as additional insurance to reduce the deductible on a primary property insurance policy specifically for losses caused by wind or hail, essentially allowing policyholders to lower their out-of-pocket expenses if they incur a Wind or Hail loss to their property. The Wind Deductible Buyback coverage essentially "buys down" the Wind deductible, either to a lower percentage or a specific dollar amount.

For example, if your primary policy has a 2% wind deductible and you own a $2,000,000 property, your Wind deductible would be $40,000. A Wind Deductible Buyback policy would allow you to reduce that deductible significantly, reducing your financial burden in the event of a windstorm claim.  The cost of the Wind Deductible Buyback coverage can vary based on factors such as building value, location, roof age, and loss history, among other factors.

If you would like more information regarding Windstorm Deductible Buyback coverage, please reach out to us, your CRV insurance agent or account manager would be more than happy to discuss the options with you further.