What is a wind deductible buy-down?
It is coverage that reduces the high percentage wind, hurricane, or named-storm deductible on a commercial property policy to a lower retained level, so the owner pays less out of pocket when a covered storm loss occurs. Coverage is governed solely by the terms of the issued policy.
Why are coastal wind deductibles so high?
Insurers use high percentage deductibles on wind and named-storm losses to manage catastrophe exposure in hurricane-prone regions. Because the deductible is a percentage of insured value, it becomes a large dollar figure on a sizable property.
How much can I reduce my deductible?
Illustratively, a buy-down might reduce a 5% deductible toward 1%. The available floor, limits, and eligibility depend on the specific property and are governed solely by the terms of the issued policy. Buy-downs are generally not designed to reduce the deductible to zero.
Does the buy-down replace my property insurance?
No. It works alongside the underlying commercial property policy, targeting the wind or named-storm deductible rather than replacing the primary coverage.
Which deductibles can be bought down?
Depending on the property and policy, a buy-down can target the named-storm deductible, the hurricane deductible, or the all-other-wind and hail deductible. Which applies to a given loss depends on the underlying policy wording.
Is flood covered?
No. A wind deductible buy-down addresses wind-related deductibles, not flood. Flood is a separate peril handled through the NFIP or a private flood or DIC placement.
What types of property are eligible?
Wind-exposed commercial property in coastal states, including shopping centers, hotels, apartment and multifamily buildings, office properties, and industrial or warehouse space. Eligibility depends on the property and is subject to appetite.
Is it available in my state?
It is written across coastal wind-exposed states. See the states page for the coverage map. Availability varies and is governed solely by the terms of the issued policy; it is not offered nationwide.
How is this different from parametric coverage?
A buy-down is indemnity-based: it reduces what you retain on your actual covered loss. Parametric pays a set amount when a storm meets defined triggers regardless of actual damage, which is faster but carries basis risk.
How fast can I get a quote?
Property-specific quotes are typically delivered quickly once the property details are provided. Some risks require an underwriting referral. To start, get a quote and tell us about your building.