Glossary
Wind and hail deductible, defined
A separate share the policyholder absorbs on claims caused by severe weather, set apart from the flat figure that applies to fire, theft and other losses. Where the standard deductible is a flat sum, this one is commonly a fraction of the dwelling limit, so it grows with the house.
In practice
Carriers introduced it as roof claims grew, and it is now routine in hail-prone areas and on older roofs. In the Southwest it is the one most relevant to monsoon season: microbursts, dust storms and hail in a single afternoon are exactly the losses it applies to. Roof schedules often travel with it, paying a roof at actual cash value after a certain age, so the two together can leave a homeowner with far less than the cost of a new roof. Because it is expressed as a fraction, the dollars change every time the dwelling limit is raised at renewal. The analysis states the current figure in dollars, checks whether a flat deductible is available for a different premium, and says which is the better buy for that roof.
A worked example
Suppose a home has a $350,000 dwelling limit, a $1,000 all-perils deductible and a two percent wind and hail deductible. A monsoon microburst strips shingles and a hailstorm the same week dents the gutters, $18,000 of damage in total. The claim is settled against a $7,000 deductible, and the policy pays $11,000. A kitchen fire the following month with $18,000 of damage would be settled against $1,000. Hypothetical figures.
Applies to: Home InsuranceMobile & Manufactured Home Insurance