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Catastrophe Deductible Calculator

CAT deductibles differ from standard deductibles — they're percentage-based and can be enormous. This calculator sizes CAT exposure.

$
%
$

CAT deductible $

$1,000,000

CAT vs standard difference

$975,000

Multiple of standard

40

How the math works

CAT deductible = TIV × %. Scales with asset value.

Reserve equity or line-of-credit to cover CAT deductible. Without liquidity, a hurricane claim with 5% deductible on $20M = $1M immediately payable for owner's share. Plan ahead.

How to Use

  1. Enter total insured value (TIV).
  2. Enter CAT deductible %.
  3. Compare to standard deductible.
  4. Read CAT deductible $.

Frequently Asked Questions

Why percentage-based?

Catastrophes are rare but huge. Percentage deductible scales with asset value. On a $20M property, 5% CAT deductible = $1M out of pocket. Institutional buyers plan for this.

Typical %?

Hurricane: 2-5% (coastal 5-10%). Earthquake: 5-15% (California high-risk 15-25%). Wildfire: 2-5%. Named storm: 3-10%. Varies by carrier and region.

Is it all at once?

Yes — flat percentage per claim. Some policies have separate deductibles for each peril. Know which applies and budget for worst-case.

How do insurance carriers view this?

Insurance carriers underwrite per-peril and often stack deductibles — named storm, wind, hail, flood, and standard can all apply separately on a single event. Confirm with your broker which deductibles actually apply to your policy and stress-test liquidity against the highest applicable deductible. Endorsements and riders can modify base terms; read declarations carefully and keep a written summary on file for claim time.

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