How Are Windstorm Deductibles Calculated?

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A deductible is the amount of money you pay before your insurance company begins to cover expenses. The problem is, it's not always easy to determine how much damage your windstorm will cause. 

And since the size of your deductible depends on the size of the damage, this can be a major source of confusion. To help you understand how deductibles are calculated, we'll provide an overview of how they work and what factors influence their size.



1. What is a deductible?
   A deductible is a minimum amount of money an insurance company must receive from a policyholder before it pays out any protection for the occurrence of a storm or hurricane. In the eyes of the insurance company, the deductible is the savings that you have purchased.
   
   
2. How do you calculate a wind insurance deductible?
   The deductible is the amount of money you are willing to pay for property damage caused by wind, meaning that if your house's windows break during a storm, you will pay the amount of your deductible in repairs to your windows, and your insurance company will cover the rest. To calculate the amount of deductible you'll need to pay, first determine how much your property taxes are annually.
   
   So how do you calculate a wind insurance deductible? It's simple. You have to multiply the annual cost of your property by the percentage of its exposure to the prevailing winds. The resulting number is then divided by 12, and that will give you your percentage deductible. 
   
   
3. What is the equipment breakdown coverage
   Equipment breakdown coverage helps protect your business during a windstorm, fire, or other disasters. It can help you stay in operation by covering the costs of repairs or replacements for equipment that's been damaged by the event.
   
   
4. What is a hurricane deductible?
   The hurricane deductible works the same as a windstorm deductible. It is the amount of money you will pay before your insurance begins its coverage. They're usually a percentage of your total coverage, and they can change for each state. Typically, these amounts start at 20% and go up to 100%. It will help you settle for a cheaper premium if you have a low deductible.

Windstorms are unpredictable, which is why it's crucial to have an independent insurance agent who can help you stay on top of your insurance policy. They will know whether or not you're covered for wind damage so that if a storm does happen, you'll be able to take the right steps to minimize its impact.

At Brad Spurgeon Insurance Agency Inc., we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (409) 945-4746. Get your free quote today by CLICKING HERE.