Connect the policy to the property
A percentage deductible may be applied to a stated value, location value, building value, or another basis defined by the policy. The dollar amount can be much larger than a flat deductible. Wind, hail, named storm, flood, earthquake, and convective-storm provisions should be reviewed separately.
Risks to review
- Percentage deductibles misunderstood as a percentage of the claim
- Different deductibles or sublimits by location and cause of loss
- Roof age, condition, surfacing, or cosmetic-damage restrictions
- Multiple buildings or locations affected by one catastrophe
Information to prepare
- Statement of values by building and location
- All peril, wind, hail, named-storm, and catastrophe deductibles
- Roof ages, types, updates, inspections, and warranties
- Loss scenarios, liquidity, lender requirements, and prior catastrophe losses
Frequently asked questions
Is a 2% deductible always 2% of the loss?
Often it is not. The policy may apply the percentage to a building, location, or scheduled value. The deductible clause must be read carefully.
Are wind and named-storm deductibles interchangeable?
No. Definitions, triggers, territories, time periods, and deductible bases can differ by policy.
Coverage descriptions are general. Eligibility, availability, limits, deductibles, valuation, exclusions, and policy terms vary. Actual policy documents control.