Habitational Insurance Wind/Hail Buydown

As a property owner, you know that protecting your investment is a top priority. While there are many things you can do to guard against damage, sometimes the unexpected happens. That’s why it’s essential to have insurance. In some cases, it may be worth your while to buy down your wind/hail deductible. 

In this blog post, we’ll take a closer look at what habitational insurance wind/hail deductible buydown is and whether or not buying down your deductible is right for you. So if you’re wondering whether or not wind/hail insurance is worth it, keep reading!

What is a wind/hail deductible buydown?

A wind/hail deductible buyback policy is purchased to reduce the wind/hail deductible should you have a wind/hail property claim.

For example, let’s say your property insurance policy has a 2% wind/hail deductible, and let’s assume the value of your property is $5 million. Thus you would have a 100,000 wind/hail deductible. You may want to consider purchasing a $7,500 wind/hail buyback policy. Now if your business has a loss you would only be responsible for the first $25,000 of damage. 

The cost of a wind/hail deductible buyback policy has to be considered but is often worth the added coverage and peace of mind. 

When does it make sense to buy down your deductible?

A few situations when buying down your wind/hail deductible may make sense.

1. If you live in an area prone to severe weather, such as severe storms or tornadoes, purchasing a policy upgrade may be worth your while. The likelihood of making a claim is much higher, and the cost of repairs increases.
2. If you have recently made improvements or additions to your property, such as a new roof or deck, it may be a good idea to buy down your deductible. The cost to repair or replace these items can be high, and you may not want to subject your company to a huge wind/hail deductible.
3. If you are concerned about being able to afford the deductible in case of a claim, buying down your policy may give you peace of mind. With a lower deductible, you will have to pay less out-of-pocket if you do have to make a claim.

What are the benefits?

There are several benefits to buying down your wind/hail deductible.

● Protect you from paying a large amount of money out-of-pocket in case of a claim.

● Peace of mind knowing that you have some protection in place in severe weather.

● Help you budget for repairs or replacement costs if damage does occur.

● Saves money in the long run by protecting your business property from potentially costly damage.

Final thoughts: Habitational insurance wind/hail buydown

Buying down your wind/hail deductible may be a good idea if you live in an area prone to severe weather, have made recent improvements to your home, or are concerned about being able to afford the deductible in case of a claim.

While there is an upfront cost to purchase a wind/hail deductible buyback policy, it could save you significant money in the long run if you have to make a claim.

If you have questions about buying down your deductible or whether or not it is suitable for you, give us a call. We will help you understand the coverage and ensure you have the protection you need.