Many Texas coastal homeowners are surprised by their deductible after a storm. Wind and hail deductibles along the coast often work differently than the flat deductible you may be used to. Understanding how yours works before a hurricane can save you from an unpleasant surprise.
Flat vs. percentage deductibles
A flat deductible is a set dollar amount, such as $1,000 or $2,500, that you pay before insurance covers the rest of a claim.
A percentage deductible is based on your dwelling coverage amount, not on the size of the claim. Along the Texas coast, wind and hail deductibles are often 1%, 2%, or 5% of your dwelling coverage.
How the math works
Suppose your home is insured for $300,000:
- 1% deductible: you pay the first $3,000
- 2% deductible: you pay the first $6,000
- 5% deductible: you pay the first $15,000
If a storm causes $20,000 in wind damage and you have a 2% deductible, you pay $6,000 and your policy pays the remaining $14,000, subject to your policy's terms.
Wind, hail, and named storm deductibles
Some policies have a separate deductible for wind and hail, while others apply a special deductible only to named storms or hurricanes. Your policy may have one deductible for a fire or theft claim and a much larger one for a hurricane. Read your declarations page carefully, or ask us to walk you through it.
How to choose the right deductible
- Start with your savings. Choose a deductible you could pay out of pocket right after a storm, when you may also have evacuation and living costs.
- Compare the premium savings. A higher deductible lowers your premium. Look at how much you save each year compared with the extra risk you take on.
- Check your lender's rules. Some mortgage lenders limit how high your deductible can be.
- Think about your roof. Roof damage is the most common wind claim. If your roof is older, a lower deductible may be worth more to you.
Deductibles on TWIA and private policies
Both TWIA and private carriers offer different deductible options, and the choices available depend on the policy and your property. When we quote your home, we show you the premium at different deductible levels so you can pick the balance that makes sense.
Get help comparing your options
If you are not sure what your current deductible would cost you after a hurricane, send us your declarations page. We will explain it in plain dollars and compare options from private carriers and TWIA. Learn more about Texas windstorm insurance or request a windstorm quote.