EDUCATING INSUREDS ON WIND AND HAIL
DEDUCTIBLES SEPARATE DEDUCTIBLES AND DIFFERING CALCULATIONS
With increasing instances of convective storms, insurance carriers are adopting measures like separate wind and hail deductibles to adapt to the changing risk landscape. These changes are reshaping how property insurance functions, from coverage terms to premium structures.
WHAT DO YOU NEED TO SHARE WITH INSUREDS?
Wind and hail deductibles are a specialized component of homeowners insurance, separate from standard deductibles. They apply exclusively to damage caused by windstorms, tornadoes, or hail. Unlike the fixed dollar amount associated with standard deductibles, wind and hail deductibles are often calculated as a percentage of the insured value of the home.
WILL THIS TREND CONTINUE?
Insurance carriers have faced enormous financial pressure due to the rising frequency and severity of storms. Consider these industry statistics from the last two years:
• Insured losses from severe convective storms reached nearly $ 40 billion in the first half of 2024.
• Losses in 2023 totaled $ 60 billion, doubling the insured losses from 2022.
For Kansas homeowners, these changes bring both opportunities and challenges. While wind and hail deductibles can make insurance rates more accessible, they also shift a greater financial burden onto policyholders when severe weather strikes. Helping your insureds understand these your policies now is critical to avoiding surprises during claim filings.
KEY CONSIDERATIONS TO SHARE WITH INSUREDS
Higher Out-of-Pocket Costs: Percentage-based deductibles can result in significant upfront expenses, especially for high-value homes. Help them understand how these mechanisms work for claims.
26 KANSAS INSURANCE AGENT & BROKER