Deductible Funding Timeline Calculator

Deductibles require cash reserves.

Deductible per occurrence

Expected claims per year

Max cluster (simultaneous) deductibles

Avg months between claims

Reserve need

$150,000

Annual expected deductible spend

$125,000

Months of runway

14.4

How the math works

Reserve = deductible × max cluster. Annual spend = deductible × claims/yr. Runway = reserve / (annual/12).

$50k × 3 cluster = $150k reserve. Annual expected $125k. Runway 14.4 months — covers clustering events without distress.

How to Use

Enter deductible per occurrence.
Enter expected claims per year.
Enter max cluster risk.
Enter claim arrival months.
Read reserve need and monthly runway.

Frequently Asked Questions

Why fund deductible reserve?

High-deductible programs (wind, earthquake, named storm) can trigger $50k-$500k per-occurrence deductibles. Multiple events in a year (hail + wind + flood) can stack. Reserve ensures cash available when claim triggers without distress.

Benchmarks?

Standard All-Perils 1% of AOI deductible: reserve = 1-2 deductibles per property per year. Named Storm 3-5% deductible: reserve = 1 deductible in hurricane zones. Aggregate deductible programs: reserve = annual aggregate cap.

Structure options?

Dedicated reserve account (restricted). Line of credit tapped if needed. Captive insurance (self-insure deductible layer). Parametric policies (pay on trigger, not loss). Each balances liquidity vs premium cost differently.

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.