Deductible Funding Gap Calculator

Large and split deductibles demand serious cash reserves. This calculator sizes the funding need.

AOP deductible

Wind/hail deductible %

Property value

Expected simultaneous losses

Funded reserve

$265,000

Wind/hail deductible

$120,000

Max single event

$120,000

How the math works

Wind/hail = value × %. Reserve = wind/hail × simultaneous + AOP.

Portfolio owners should model aggregate deductible across all properties hit by a single storm. A 5% wind deductible on each of 8 coastal assets is 8 simultaneous hits, not one — the math on a Cat-5 landfall is brutal without aggregate caps.

How to Use

Enter all-other-peril deductible.
Enter wind/hail deductible %.
Enter property value.
Enter expected simultaneous losses.
Read funded reserve requirement.

Frequently Asked Questions

Deductible structures?

Flat ($5k-$100k typical). Percentage (2-5% of property value for wind/hail, 5-15% for earthquake). Per-occurrence (each loss fully exposed). Aggregate (cap on annual total). Tiered (different deductibles by peril).

Wind/hail math?

5% wind deductible on a $2M property = $100k deductible per occurrence. Two named storm hits in a season = $200k out-of-pocket. Coastal and tornado-alley owners routinely exposed.

Deductible buy-down?

Deductible buy-down insurance covers the first layer above policy deductible. $5-20k premium for $25-100k deductible buy-down. Often cheaper than self-insuring for small operators with tight cash.

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.