Preparing for the Storm: A Guide to Wind-Hail Deductibles

Living in Texas means unpredictable weather that can include severe thunderstorms, strong winds, and hail that can range from pea-sized to golf ball…or even larger. When these are the conditions, your home could be at risk. That’s why knowing how your wind-hail deductible works on your homeowners insurance policy is essential. At Rollo Insurance, we’re dedicated to helping Texans understand these coverages.

What is a Wind-Hail Deductible?

A wind-hail deductible is the amount of money you pay out of your own pocket before your home insurance policy starts to pay for damage caused specifically by windstorms or hail. Unlike your standard “all-peril” deductible (which is usually a set dollar amount), wind-hail deductibles are almost always expressed as a percentage of your home’s dwelling coverage amount.

How Does a Wind-Hail Deductible Work?

Let’s break down how this percentage-based deductible works with an example:

• Your Home’s Dwelling Coverage: Let’s say your home is insured for $300,000.
• Your Wind-Hail Deductible: You have a 1% wind-hail deductible.

If a hail storm causes $10,000 in damage to your roof:

1. Calculate Your Deductible: 1% of $300,000 = $3,000.
2. Your Out-of-Pocket Cost: You would pay the first $3,000 of the damage.
3. Insurance Pays: Your insurance company would then pay the remaining $7,000 for the repairs.

This means the actual dollar amount of your deductible changes if your dwelling coverage amount changes over time.

Do You Need a Wind-Hail Deductible?

In Texas, due to our frequent severe weather, yes, you absolutely need to have a wind-hail deductible on your homeowners insurance policy.

In fact, it’s virtually impossible to get a homeowners insurance policy in Texas without one. Insurance companies implemented these specific deductibles to manage risk in states prone to heavy wind and hail events. The question isn’t if you need one, but rather what percentage it should be.

What Should My Wind-Hail Deductible Be?

Choosing the right wind-hail deductible involves balancing your monthly premium costs with what you can afford to pay out-of-pocket if a storm hits. Here are the common options and what to consider:

• Common Percentages: Typical wind-hail deductibles in Texas range from 1% to 5% of your dwelling coverage, though some policies may offer higher options.
  • 1% Deductible:
    • Pros: Lower out-of-pocket cost if you file a claim.
    • Cons: Will likely result in a higher annual insurance premium.
  • 2% – 3% Deductible:
    • Pros: A good balance for many homeowners; offers a slightly lower premium than 1% that keeps your out-of-pocket cost manageable.
    • Cons: Higher out-of-pocket cost than 1% if a claim occurs.
  • 5% Deductible (or higher):
    • Pros: Will significantly lower your annual insurance premium.
    • Cons: You will have a much higher out-of-pocket cost for repairs if a storm causes damage. This can be thousands of dollars, so make sure you have these funds readily available.

Questions to Ask Yourself When Choosing Your Deductible:

1. How much can I realistically afford to pay out-of-pocket right now if a severe storm damages my home? Be honest with yourself about your emergency savings.
2. How often do severe wind-hail storms occur in my specific area of Texas? If you live in a very high-risk zone, a lower deductible might offer more peace of mind, even with a higher premium.
3. Am I more concerned about a higher monthly payment or a larger one-time payment if a storm hits?

Your Rollo Insurance agent can help you run quotes with different deductible percentages so you can see the premium difference and make an informed decision that fits your budget and risk tolerance.

Protecting Your Texas Home from the Elements with Rollo Insurance

Wind and hail are part of everyday life in Texas. Knowing how your wind-hail deductible works is key to protecting your home and your wallet. At Rollo Insurance, we’re focused on helping Texans find smart, dependable homeowners insurance. Get in touch today for a personalized quote, and let’s make sure your home is ready for whatever comes your way.