ADDITIONAL DEDUCTIBLE COVERAGE FOR: 

WINDSTORM & HAILSTORM insurance

Coverage designed to complement an existing insurance policy. Wind Deductible Buy Back (“WDBB”) policies help reduce the deductible burden of policyholders after a wind or hailstorm occurs.

how Wind deductible buy back (“WDBB”) Policies work:

WDBB policies significantly soften the expense of a wind and hail deductible for business owners. WDBB insurance is designed to help policyholders avoid big, out-of-pocket expenses following a covered event. WDBB insurance (also known as “wind buy-back insurance”) is a policy, separate from the primary insurance policy, that reduces an insured’s deductible in the event of a wind or hail loss. While a WDBB policy functions as an add-on to an insured’s existing primary insurance policy, a WDBB policy does not operate independently of the primary insurance policy.

For example, a policyholder that has a $10 million property with a 5% wind deductible ($500,000 deductible) could purchase a separate WDBB policy to cover $450,000 of the original deductible. The WDBB policy would reduce the out-of-pocket deductible expense of the insured to around $50,000.

benefits of WDBB coverage:

  • Helps policyholders avoid severe, out-of-pocket deductible expenses following a covered event.

  • Assists insurance carriers looking to offset the challenges of a hardening primary property insurance market. The hardening market often creates higher premiums, less coverage, and stricter underwriting requirements for policyholders and potential policyholders.

  • Useful for property owners who are subject to restriction caps on their loans or mortgages. Lenders will sometimes require property owners to reduce their property insurance deductible to maintain their loan or to be approved for a refinance/new loan.

WDBB PROGRAM HIGHLIGHTS:

  • Available to commercial and residential insureds.

  • Flexible premium options allow the insured to choose the level of deductible reduction they want.

  • Affordable premiums.

  • Available limits up to $4 million in coverage.

  • Available in most coastal areas threatened by hurricanes and other tropical storms.

  • Written on behalf of a worldwide leader of specialty and reinsurance products.