Wind and Hail Deductibles
A wind and hail deductible is a separate, often percentage-based deductible that applies specifically to windstorm and hail damage claims on a commercial property policy, rather than the flat dollar deductible that applies to other covered perils on the same policy. The Allen Thomas Group flags these deductibles for clients in hail-prone and coastal regions, because they can turn what looks like a modest overall deductible into a much larger out-of-pocket cost for the type of claim most likely to actually happen.
How the Percentage Works
Rather than a flat number, wind and hail deductibles are commonly set as a percentage, typically 1% to 5%, of the building's insured value. That percentage applies per occurrence, not once a year across all claims.
A Concrete Example
On a building insured for $3,000,000 with a 2% wind and hail deductible, a single storm claim carries a $60,000 deductible before the policy pays anything, compared to a flat $2,500 deductible that might apply to a fire claim on that same policy.
Why This Matters
A business in a region with frequent hailstorms or hurricanes can face a real-world deductible far higher than the number that first catches the eye on the declarations page. Understanding the actual dollar exposure matters for budgeting a reserve, since storm damage is often the most likely claim a property owner in these regions will ever file.
How The Allen Thomas Group Can Help You
We'll help you understand exactly how wind and hail deductibles affects your coverage and cost, then shop your policy across 15+ A-rated carriers to find the right fit.
Get a Precise Quote