A Hurricane blows through leaving your home battered by wind and hail.
You breathe a sigh of relief knowing you have insurance only to discover that your policy’s wind deductible is 3%.
But 3% of what?
The claim damage?
No.
3% of your insured value listed on your policy.
A 500,000 home would be a $15,000 deduction off your claim check.
Ouch.
That’s where Wind Deductible Buy Back Insurance (WDBB) comes in—a game-changer for homeowners in hurricane areas.
This unique coverage helps soften the financial blow of high deductibles, making recovery less stressful and more affordable.
Let’s dive into what Wind Deductible Buy Back is, how it works, and why it’s a must-have for anyone facing a Hurricane every year.
What Exactly is Wind Deductible Buy Back Insurance?
Wind Deductible Buy Back Insurance is a standalone policy that steps in to cover part of your wind deductible.
Most homeowners insurance policies along the Gulf Coast may only offer a 2%, 3% or 5% wind deductible on all new policies.
Higher value homes are subject to a higher claim check deduction so most homeowners with a 500,000 or higher valued home are basically self-insuring their roof
This policy allows you to buy down your wind deductible
What Makes Wind Deductible Buy Back Insurance Special?
Flexible Coverage: You decide how much of your deductible you want to buy.
Budget-Friendly Premiums: WDBB policies are often surprisingly affordable with rates as low as $250
How Does WDBB Help you Save?
You have a 400,000 home with a 3% wind deductible
Your wind deductible is $12,000
The insurance company would deduct the first $12,000 of damage off the claim check
You would be responsible for the first $12,000 of wind damage
The insurance company would pay for the rest
If you buy a wind deductible buy back policy buying down your deductible to 1%
Your new deductible would be $4,000 (1% of 400,000)
Your insurance company would provide you a check for damages minus the $12,000 and you would make a claim with your wind deductible buy back policy for the difference of $7,000 ($12,000 – $4,000)
It’s a straightforward process that turns a potential financial hit to your bank account into something manageable.
How Much Does Residential Wind Deductible Buy Back Cost?
Here are a few examples
Here is a Home in River Ridge, La 70123
600,000 home with a 3% Hurricane deductible ($18,000 deduction)
The homeowner purchased the wind deductible down to 1% (600,000 x 1% = $6,000)
His new hurricane deductible is 1% ($6,000)
The cost is $556 annual (paid in full and fully earned so no refunds)
Here is a Residential Four Plex in Metairie, La 70005
594,000 on a brick two story building with a 3% Hurricane Deductible ($17,820 deduction)
To buy down the wind deductible to 1% (594,000 x 1% is $5,940 deductible)
The rate is $579 annual
Who Should Get Wind Deductible Buy Back Insurance?
If you’re wondering whether WDBB is right for you, here’s who it’s perfect for:
Homeowners on the Gulf Coast: If your home is in a hurricane zone, WDBB can save you from high deductible costs.
Real Estate Investors: Before you exclude wind from your rental property insurance policy to save money you could take a high deductible and buy down the wind deductible to soften the blow during hurricane season
How does a wind deductible buy back policy work when I need to make a claim?
You would make your claim with your home insurance company and let them assess the damage and issue an estimate.
You would make a claim on your wdbb policy and submit the damage estimate to get reimbursed for the portion of your deductible you purchased.
Here is an example:
Your home insurance policy has a 3% hurricane deductible on a 700,000 home and your wind deductible buy back policy has a 1% hurricane deductible
700,000 x 3% is $21,000 deductible on home insurance
700,000 x 1% is $7,000 deductible buy down on wdbb policy
Your payment would be $14,000 on your wdbb policy
Another example on a High Value Home
If your primary policy has a 5% wind deductible on a $1,000,000 home
your deductible would be $50,000
If you have a wind deductible buyback policy that reduces the deductible to 1%
your new deductible would now be 1% or $10,000
Why WDBB is a Smart Move in Today’s World
Higher wind and hail deductibles are becoming the new standard.
That means property owners bank accounts are paying more for wind damage than their actual policy does.
Wind Deductible Buy Back Insurance is like a financial safety net during hurricane season.
It will not allow you to buy down the wind to zero but at least having a 1% wind deductible will help when a Hurricane reaches 100 mph and its tracking to your neighborhood.
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