Wind Deductible Buyback Insurance: How to Save on Windstorm Deductibles

With the recent increase in severe weather and wind-related claims, insurance carriers have been raising windstorm deductibles, some reaching 5% or higher. Homeowners in coastal and storm-prone areas could face thousands of dollars in deductible costs before insurance even begins to kick in. Luckily, carriers are introducing wind deductible buyback policies to help bridge that gap. But what is a wind deductible buyback, and how can it help save you money on rising wind deductible costs?

Key Takeaways

• Purchasing a wind deductible buyback policy to supplement your primary home insurance policy can save you thousands in the event of a wind or hail loss. 
• Carriers such as Swyfft offer wind buyback policies to help ease the financial burden of unexpected wind-related claims.
• TGS Insurance can help you find a wind buyback policy that saves you money when you need it most.

What is a Wind Deductible Buyback?

A wind deductible buyback is a supplemental policy you can purchase to help lower your windstorm deductible in the event of a wind or hail loss. This is one of the specific types of buyback deductibles available for homeowners and commercial property owners. It is especially beneficial for those who live in coastal regions where hurricanes and tropical storms are prevalent.

So what’s the difference between a buyback deductible and a wind deductible buyback? Well, they essentially operate in the same way. However, general buyback deductible policies apply to your deductible when you file a claim for any named-peril loss. Wind buyback policies kick in only in the event of a claim filed due to a wind-related loss. This type of buyback policy has been increasingly popular in recent years, due to the rising number of severe storms forcing insurers to raise wind deductibles. They have been beneficial for residents located in coastal areas and regions prone to wind-related damage.

How Do Wind Deductible Buybacks Work?

A wind deductible buyback policy allows you to “buy back” part of your wind deductible, subsequently decreasing the amount you owe in the event of a wind-related loss. How does this work? Let’s look at a real-world example: 

Say a homeowner living on the coast insures their house for $400,000. Hurricanes are common in their area, so their insurance carrier raises their wind deductible to 5%. That 5% deductible would equal a $20,000 cost before insurance kicks in to pay for damages in a wind-related loss. However, the homeowner can purchase a wind deductible buyback policy to buy back 3%, or $12,000, of their 5% deductible. This leaves the homeowner responsible for a much more manageable 2% of their deductible, or $8,000, before insurance kicks in. 

The buyback policy essentially works to lower your deductible costs, specifically for wind-related claims. It is important to note that a wind deductible buyback policy is not a replacement for your homeowners insurance. It is a supplemental policy or add-on that works alongside your homeowners policy to help reduce your deductible costs.

Advantages of Wind Deductible Buybacks

When considering adding a wind buyback to your policy, it’s important to take into account the advantages this type of supplemental policy offers:

• Reduces Financial Burden: A wind buyback policy works to decrease the amount you would pay in the event of a wind-related loss. This helps ease the financial burden you would otherwise face following unexpected damage due to weather. 
• Offers Peace of Mind: Knowing your deductible is lower can offer peace of mind, especially when weather conditions begin to worsen. For some homeowners, having this extra security in place is worth the extra cost of a buyback policy.
• Keeps Monthly Premiums Low: A buyback policy can help you keep your monthly payments low. With this type supplemental policy, you can choose a higher deductible, which leads to lower monthly premiums. The buyback policy supplements the lower monthly premiums, lowering your deductible in the event of a claim.

Where Are They Used?

Wind buyback policies can be beneficial for every homeowner. But they especially come in handy for those who live in coastal regions, or areas prone to wind-related weather events, such as hurricanes, tropical storms, or tornadoes. Many homeowners and commercial property owners in Texas, Louisiana, Florida, North Carolina, and South Carolina have found buyback policies helpful in times of severe storms and high winds. 

Swyfft is one of the various carriers that is introducing a wind buyback program across 26 states. Their Wind Deductible Buyback Program helps bridge the gap between low premiums and high deductible expenses for wind, hail, and named storm claims. This wind deductible buyback coverage can save you tens of thousands of dollars in the event of a claim.

How Much Does a Wind Buyback Policy Cost?

Similar to a homeowner’s policy, the price of a wind buyback policy can vary depending on numerous factors. Characteristics such as your home’s location, the age of your roof, and the level of weather risk all impact a wind buyback policy’s cost.

The value of your home and the cost of your current deductible also impact the price of your wind buyback policy. If your home is insured for a higher price, your deductible is going to be higher. Subsequently, your buyback premium will be higher because of this.

The best way to get an accurate estimate for a wind buyback policy is to call your insurance agent and ask for a quote. Our agents at TGS Insurance are ready to help you save the most on your wind deductible.

Is a Wind Deductible Buyback Right for Me?

There are a few things to consider when determining whether a wind buyback policy is right for you:

• Weather Conditions: Consider the frequency and severity of weather events in your area, focusing on wind-related damages that have happened in the past, or could happen in the future. If you live in a place where hurricanes, tropical storms, or tornadoes are common, it might be beneficial to purchase a wind deductible buyback policy.
• Current Wind Deductible: Determine the cost of your current wind/windstorm deductible. If that number is not something you’d be comfortable paying in an unexpected claim, a wind deductible buyback might be right for you. 
• Calculate Your Savings: Compare the cost of your deductible with the cost of a wind deductible buyback policy. Do the savings a buyback policy provides outweigh the overall cost of the deductible in the event you’d have to pay it? If so, a wind buyback policy might be beneficial for you.

If you’re unsure if a wind buyback policy would be beneficial for you, give TGS Insurance a call! Our agents are ready to help you determine how much you can save on your deductible today.

Save on Your Windstorm Deductible With TGS Insurance

Deductibles can be complicated and stressful, especially in the aftermath of unexpected weather. The last thing you want to do when faced with damages is think about paying a hefty sum out-of-pocket. TGS Insurance is ready to help ease your financial burden when you need it most. Our agents are here to guide you through wind buyback options that could save you thousands on your deductible! Get in touch with one of our agents today to learn how much you can save.

FAQs