Many property owners focus on their insurance limits but pay less attention to one important detail – their wind and hail deductible.
If your homeowners or commercial property policy includes a percentage-based deductible, you could be responsible for paying thousands of dollars before your insurance coverage begins.
That’s why Pierce Insurance Group is excited to offer Deductible Buyback Coverage, a product designed to reduce your out-of-pocket responsibility for covered wind and hail losses.
Understanding Percentage Wind & Hail Deductibles
Unlike a fixed-dollar deductible, a percentage deductible is calculated based on your property’s insured value.
For example:
- Property insured for $600,000
- Wind & hail deductible: 2%
- Deductible: $12,000
In this example, the primary insurance policy would not begin paying for a covered wind or hail loss until the $12,000 deductible has been satisfied.
For many property owners, that can represent a significant financial responsibility.
What Is Deductible Buyback Coverage?
Deductible Buyback Coverage is designed to reduce the amount you pay toward your wind and hail deductible.
Eligible properties may qualify to reduce their deductible to:
- As low as $2,500 for residential properties
- As low as $5,000 for commercial properties
This coverage is available for single residential and commercial buildings.
How Does It Work?
Let’s use the same example.
A property insured for $600,000 has a 2% wind-and-hail deductible, resulting in a $12,000 deductible.
With Deductible Buyback Coverage:
- Your selected self-retention may be as low as $2,500 for eligible residential properties.
- Your primary insurance policy continues to apply its $12,000 deductible.
- The Deductible Buyback Policy covers the portion of the covered loss that exceeds your selected self-retention amount, up to the primary policy’s deductible, subject to the terms and conditions of the policy.
This allows eligible property owners to reduce their out-of-pocket responsibility after a covered wind or hail loss.
Who Should Consider This Coverage?
Deductible Buyback Coverage may be worth discussing if you own:
- A residential property with a percentage wind and hail deductible
- A commercial building with a percentage wind and hail deductible
If you’re unsure what deductible applies to your current policy, reviewing your coverage can help you better understand your financial responsibility following a covered claim.
Why Talk to Pierce Insurance Group?
Insurance products can be complex, and deductibles are often overlooked until a claim occurs.
The team at Pierce Insurance Group can review your current policy, explain how your wind and hail deductible works, and help determine whether Deductible Buyback Coverage is available for your property.
Understanding your deductible today can help you make informed coverage decisions before you ever need to file a claim.
Learn More About Deductible Buyback Coverage
If your property has a percentage wind and hail deductible, Deductible Buyback Coverage may help reduce your out-of-pocket responsibility after a covered loss.
Contact us today to learn more about this coverage and find out whether it’s a good fit for your property.
Call Pierce Insurance Group at (469) 252-8001 to speak with our team.
Request a Quote
Frequently Asked Questions (FAQs)
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What types of properties are eligible for Deductible Buyback Coverage?
The program is available for eligible single residential and commercial buildings.
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Does this policy replace my homeowners or commercial property insurance?
No. It works alongside your primary insurance policy and is designed to reduce your wind-and-hail deductible.
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How low can my deductible be reduced?
Eligible residential properties may reduce their deductible to $2,500, while eligible commercial properties may reduce theirs to $5,000.
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How can I find out if my current policy has a percentage wind-and-hail deductible?
Pierce Insurance Group can review your policy and explain how your deductible applies.
