Insurance Deductible Allocation Calculator

Multi-peril events can stack deductibles across perils — a common coverage gap.

Total loss

Wind deductible %

Hail deductible $

Standard deductible

Wind portion %

Hail portion %

Total insured value

Total stacked deductible

$335,000

Net insurance recovery

$2,165,000

Wind deductible

$300,000

How the math works

Each peril's deductible = min(peril loss, applicable deductible). Total = sum.

$2.5M × 60% wind = $1.5M, wind deduct 3% × $10M = $300k. Hail $625k, deduct $25k. Std $250k, deduct $10k. Total deduct $335k.

How to Use

Enter total loss amount.
Enter wind deductible %.
Enter hail deductible $.
Enter standard deductible.
Enter wind portion of loss %.
Enter hail portion of loss %.
Read allocated deductibles.

Frequently Asked Questions

Why are deductibles layered?

Property insurance policies apply separate deductibles for specific perils (wind, hail, named storm, flood, earthquake). In a multi-peril event (tornado causing wind + hail + water damage), each peril-specific deductible may apply to its portion of the loss, not a single deductible to the whole loss. Sophisticated carriers don't share this nuance; sophisticated owners check policy schedules annually. Allocation depends on policy wording — 'occurrence basis' vs 'peril basis.'

Typical deductible structures?

Standard all-perils deductible: $5k-50k per occurrence. Wind deductible: 1-5% of insured value (so $5M insured = $50-250k). Hail deductible: $1k-25k or 1-2% of insured value. Named storm: 3-10% of insured value. Earthquake: 5-15% of insured value. Flood: often separate policy via NFIP or private. These add up — a Category 2 hurricane on a $10M property can easily produce $500k+ in combined deductibles.

How do carriers allocate in practice?

If policy says 'per peril,' each deductible applies to that peril's portion of loss. Adjuster splits the loss by cause (wind to wind deductible, hail to hail deductible). Disputes common. Look for 'peril benefit to policyholder' wording — which caps stacked deductibles at the single highest. Some policies have anti-stacking endorsements that protect insured; older policies may not. Read the actual policy, not the summary — differences of 50-200 bps on total deductible exposure.

How to stress-test deductible exposure?

Model worst case: named storm + wind + hail event on a single property. Add all applicable deductibles. Compare to liquid reserves. If stacked deductibles exceed 6-12 months of NOI, consider increasing property-level reserves or buying deductible buy-down insurance (available for wind/hurricane in coastal markets). Lender-required reserves rarely account for stacked deductibles; sponsor-level reserves should.