What is a wind and hail deductible in homeowners insurance?

A wind and hail deductible is a set dollar amount you’re responsible for paying out of pocket if your home is damaged by wind, hail, or similar events outlined in your policy. Your home insurance will help pay for remaining covered damage, up to your policy limits. 

When do wind/hail deductibles apply?

A wind/hail deductible only applies to damage caused by certain events, such as:

• Wind

• Hail

• A tornado

• Wind-driven rain events

Let’s say you have a home insurance policy with a $1,000 wind/hail deductible. If a hailstorm damages your roof, then you’d be responsible for covering that amount. Your insurance would pay for any remaining covered damage, up to the limits of your policy.

Wind/hail deductibles, sometimes called severe convective storm deductibles, are most common in areas that are at high risk for wind or hail damage, such as states in Tornado Alley, the Great Plains, or the Midwest. However, with shifting weather patterns in recent years, people in more states may see wind/hail deductibles on their policies.

What triggers this deductible depends on the specifics outlined by your insurer in your policy. You can check your policy documents or contact your insurance company for details.

Notably, when a loss results from a storm system that the National Hurricane Center names, a hurricane deductible may apply, depending on your state and your policy’s language. Again, your insurer can help clear this up if you have questions about the coverage in your policy.

How wind/hail deductibles work

Wind and hail deductibles are typically calculated as either a flat-dollar amount or a percentage of your dwelling coverage (also referred to as Coverage A). Let’s say, for example, that you have $300,000 worth of coverage for your dwelling with a 1% wind/hail deductible. That means the amount of the wind or hail damage you’re responsible for equals 1% of $300,000, or $3,000.

Alternatively, you might be able to choose a flat-dollar deductible. If you chose $2,500, that’s how much you’d be responsible for. Then, your insurance policy will kick in to cover the rest, up to your policy limit.

How much are wind and hail deductibles?

Wind/hail deductible limits vary. Depending on the state where you’re located and the insurer you choose, a carrier may offer both flat-dollar and percentage-based options. That way, you can choose the best option for your situation. 

Not every policy comes with a wind/hail deductible, so be sure to read yours closely or ask your insurance agent if your policy includes one.

How is a wind/hail deductible different from a standard or hurricane deductible?

Wind/hail deductibles are similar to both standard deductibles and hurricane deductibles in that all three represent an amount of damage you have to cover on your own in the event of a qualifying claim. However, each is triggered by different events. Let’s look at some examples. 

Say your roof damage was caused by:

• An electrical fire: A standard deductible covers most of the risks (or perils) that can cause property loss, such as fires and theft.

• A hurricane or named storm: Hurricane deductibles are usually triggered when you experience a loss during a storm named by the National Hurricane Center, but this can vary by state.

• A tornado: This is when a wind/hail deductible may apply to your claim. Wind/hail deductibles might also apply when hail, wind-driven rain, and similar events cause damage to your property.

Your policy may have multiple types of wind damage deductibles, just one, or none at all. It usually depends on where you live.

What should my wind/hail deductible be? 

Whatever type of deductible you’re choosing, the right one depends largely on your personal circumstances. People sometimes choose a higher deductible because it often translates to lower policy costs (called premiums). However, it’s important to select an amount you can comfortably afford if you have to make a claim.

The key is to choose a deductible that’s low enough that you aren’t overly burdened if you have to pay it at a moment’s notice, but not so low that the premium you pay for your policy becomes overly expensive.

What are the benefits of a wind/hail deductible?

Simply put, wind/hail deductibles keep home insurance more accessible and affordable. By adopting a separate deductible for higher-risk scenarios, insurers can continue to provide vital coverage for those living in areas that see frequent severe storms, which can result in costly damage to homes.