Understanding your wind/hail percentage deductible is important.
Windstorm and Hail loss severity and frequency has increased.
There are on average 3,000 hailstorms in the U.S. every year. In 2015 alone, there were over 5,000 major hailstorms. The National Weather Service has reported hail caused approximately $1.29 billion in annual damage.*
Damages have been escalating in recent years. According to a 2014 study by Verisk, from 2000-2013, there were almost 9 million claims for hail losses, with 70% of those losses occurring in the most recent years.
The landscape is changing
As a result, Wind/Hail Percentage Deductibles have become more common in Community Associations policies leading to more complexity.
What is a deductible?
The amount you're responsible for paying in the event of a covered loss. Once the deductible is met, your insurance will cover costs up to your policy limits. Below are two types of deductibles – Set Dollar and Percentage deductibles:
Set Dollar Deductible
- Predetermined fixed amount
- Typically applied per loss event
Percentage Deductible for Wind/Hail
- A percentage of the value of the property limit that is applied per damaged building
- Applies to loss caused by wind or hail
To cover the cost of a deductible, or cost of a covered loss that falls below a deductible, many Community Associations will assess their unit owners.
How the assessment is conducted will be governed by the Community Association's By-Laws.
Wind/Hail Deductible Buy Back
Is an insurance product available to Community Associations which covers the cost of a wind/hail deductible under a separate insurance policy.
This additional wind/hail buy back policy exclusively covers wind/hail damage and it serves to pick up the cost of a policy holder's percentage deductible.
All Access Insurance provides agents who can work with you on risk mitigation measures to help reduce your Community Association's loss exposures.
We'd be happy to go over this with you in detail.
Keeping you protected.
All Access Insurance in Littleton, CO, who represents multiple insurance companies as a “Broker” and provides products for auto, home, commercial, workers compensation, and much more! Call us today for a free quote at (303) 932-1700.