How it works
Most homeowners policies have an all-peril deductible: a flat amount, like $1,000, that you pay toward most covered claims. Some policies add a separate deductible for wind or hail damage. Instead of a flat amount, it's a percentage of your dwelling coverage limit, often called Coverage A.
How the math works
Multiply your dwelling coverage by the percentage. These are hypothetical examples:
- 1% of $350,000 dwelling coverage: $3,500
- 2% of $350,000 dwelling coverage: $7,000
- 2% of $400,000 dwelling coverage: $8,000
- Compare with a $1,000 all-peril deductible on the same home
Why it can surprise people
The percentage is based on your dwelling limit, not the size of the claim. As your dwelling coverage rises at renewal, the dollar amount of your deductible rises with it. If a hailstorm causes $10,000 of roof damage and your wind or hail deductible is $8,000, your policy would pay $2,000, subject to its terms.
Because the deductible can be several thousand dollars, smaller storm damage may end up costing you the full repair. That's why it helps to know your number before storm season, not after.
Where it's common
Percentage deductibles show up more often in areas with frequent storms, including coastal regions and parts of the country with regular hail. Some carriers use a named-storm or hurricane deductible instead, which applies only to certain storms. State rules on these deductibles vary.
What to check on your policy
Your declarations page lists your deductibles. Look for these details:
- Whether your wind or hail deductible is a flat amount or a percentage
- What triggers it: any wind or hail, or only named storms
- The dollar amount it works out to at your current dwelling limit
- Whether you can choose a lower percentage or a flat deductible, and the premium difference
Plan for it
A percentage deductible can lower your premium, but only if you could actually pay it after a storm. Many homeowners keep at least that amount in an emergency fund. If the number feels too high, ask your agent about buying it down.
Keeping up with your roof, trimming trees near the house and securing outdoor items can also help reduce storm damage. Some carriers offer credits for impact-resistant roofing, so ask what's available where you live.
Get help comparing
CapCenter's insurance agency can explain the deductibles on your current policy and compare quotes from multiple carriers with different deductible options.