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Windstorm Deductible Calculator

Named storm deductibles are %. This calculator sizes.

$
%
%
%

Retained loss per event

$255,000

Expected annual cost

$20,400

Deductible $ amount

$255,000

How the math works

Deductible $ = replacement × deductible %. Retained = min(deductible, total loss). Expected annual = retained × probability.

On $8.5M asset with 3% named storm deductible: $255k retained per event. 8% annual probability = $20.4k expected annual cost. Reserve that amount annually in captive or cash fund to prepare for trigger events.

How to Use

  1. Enter replacement value.
  2. Enter windstorm deductible %.
  3. Enter expected event severity %.
  4. Enter annual storm probability %.
  5. Read retained loss and expected cost.

Frequently Asked Questions

Why % deductible?

Hurricane losses often total — insurer caps catastrophic exposure. Shift some loss back to landlord via % deductible. 2-5% typical in coastal; 5-10% in high-risk Florida/Texas coastal. $500k-2M retained on typical commercial building.

Triggered by?

Named windstorm definition varies: hurricane (Cat 1+), named storm (tropical storm named), or any windstorm above threshold. Matters — tropical storm may trigger 5% deductible even if hurricane didn't form.

Retention planning?

Reserve cash or have line of credit for deductible trigger. Captive insurance for large portfolios — self-insures first layer, buys excess above. Reduces premium but requires sophisticated risk management and capital commitment.

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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