Property claims glossary
What is a wind/hail deductible?
A wind/hail deductible is a separate deductible for wind and hail losses, usually set as a percentage of the dwelling limit rather than a flat dollar amount. It matters because the percentage is taken of the dwelling limit, not the size of the loss, so it is often far larger than the all-perils deductible.
Worked example · fictitious claim
A home has a $400,000 dwelling limit, a $1,000 all-perils deductible and a 2% wind/hail deductible. On a $25,000 hail claim, the wind/hail deductible is 2% × $400,000 = $8,000, so the payment before depreciation is $25,000 − $8,000 = $17,000. Applying the $1,000 deductible by mistake would overpay by $8,000 − $1,000 = $7,000.
How it affects a settlement
On wind and hail losses the percentage deductible applies in place of the all-perils deductible, and it reduces the check directly. Applying the wrong one, or calculating it on the loss instead of the dwelling limit, is a common settlement error.
In practice
A separate deductible for wind and hail losses, typically a percentage of the dwelling limit rather than a flat dollar amount. A 2% deductible on a $500,000 dwelling is $10,000. Applying the standard deductible instead is a four-figure error, per claim.
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Deductible · CAT event · AI property claims review · property claims glossary