Wind and Hail Deductible Increases

Today I want to talk about increasing homeowner’s insurance deductibles, specifically wind and hail deductibles. North Texas, is notorious for wind and hailstorms. In fact, most homeowners insurance claims in Texas are related to wind and hail. The average age of a roof in the North Texas area is 8 years old. Because of the losses associated with wind and hail here, carriers are increasing wind and hail deductibles to 2% or more. I’ve had already had conversations with many of our clients about the wind and hail deductible raise. Let me explain what that looks like for those just now hearing about it.

What is a Percentage Deductible?

For years the standard deductible in Texas has been a 1% wind and hail deductible. A percentage deductible is not a percentage of the claim amount; it’s a percentage of your dwelling amount. To make numbers simple, let’s say your house is insured for $400,000. If you have a 1% deductible, you have a $4,000 deductible for wind and hail. If you have a 2% deductible, that’s now going to be an $8,000 deductible for wind and hail.

The New Norm

2% deductibles are becoming the new norm here in North Texas. A year ago, most carriers we had in our agency would write a 1% wind and hail deductible. Now, a year later, we only have one or two carrier(s) that are still writing 1% wind and hail deductibles. All other carriers have gone to a mandatory 2% wind and hail deductible.

Grandfathered Policies

The good news: if you currently have a 1% deductible, you’re most likely going to be grandfathered in. A few companies are not grandfathering policies – one being Germania. They have actually gone to a 3% wind and hail deductible in North Texas and 2% in other areas in the State. Some of our other companies are grandfathering you in if you already have a 1% but there are rumors that other carriers may follow Germania’s lead and start increasing deductibles at renewal.  This is why it’s important to review your renewal policies and be aware of any changes and ensure you should have enough money saved to cover your deductible if anything should happen.

Deductible Reimbursement Plans

We also have a new product that offers partial deductible reimbursement. These plans are inexpensive – usually a couple hundred dollars per year. The plan we are offering includes $2,500 reimbursement. That means they would reimburse you for $2,500 of your deductible once per year. These plans also have a little extra coverage built in that is helpful. You can read more about them here.

Hanby Helps

If you have any questions about your wind and hail deductible, please reach out. We’re always here to help and explain things. We want you to know what your insurance covers and what it looks like if you have a claim.