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Why Add a Deductible Buy-Down or Parametric Policy if I already have a Homeowners Policy?
Even with a top-tier homeowners policy, a major storm leaves you exposed to two massive financial risks: out-of-pocket deductibles and insurable gaps that standard insurance won’t cover right away.
That’s where Deductible Buy-Downs and Parametric Insurance step in—acting like financial shock absorbers to protect your hard-earned savings.
The Deductible Buy-Down: Erasing the "Percent" Shock
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The Percentage Risk (The Primary Policy Trigger): When a severe weather event like a hurricane, windstorm, or hail hits, your standard homeowners policy automatically triggers a percentage deductible (typically 2% to 5% of your dwelling’s total insured value) instead of your normal, everyday flat deductible.
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The Out-of-Pocket Shock (The Primary Policy Gap): If your primary homeowners policy insures your dwelling for $400,000, a 5% wind/hail deductible means your primary carrier will subtract $20,000 from your repair check. You are required to come up with that massive gap out of pocket before your primary insurance covers the rest.
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The Buy-Down Solution (How They Work Together): A deductible buy-down policy sits seamlessly alongside your existing homeowners policy to coordinate benefits during a claim. Once your primary policy is engaged for this type of loss, the buy-down policy steps in to pay that $20,000 gap—minus a small, manageable flat deductible you choose (min. $2,500). Together, the two policies ensure your home gets repaired without draining your savings.
- The Parameter (The Trigger): A specific, objective metric is set when you buy the policy. For environmental risks, this is usually data provided by an independent agency like the National Weather Service (NWS). Examples include a Category 3 hurricane, wind speeds exceeding 74 mph, or hail measuring 2 inches or larger hitting your location.
The Location: The policy is tied to a specific geographic area or precise GPS coordinates (such as your home or business).
Proof of Loss: No claims adjuster or contractor’s estimate needed, just a few images of your damage and they confirm with the NWS.
No Premium Increases or changes to Claim History. Getting a pay-out will NOT impact your primary homeowners insurance rate or insurability.
The Payout: Parametric payouts are pure cash with no usage restrictions. You can use the funds instantly to:
Pay your primary policy’s high wind/hail deductible.
Cover immediate evacuation costs, hotel stays, or a backup generator.
Handle rapid emergency repairs, tree debris removal, or structural tarping.
Coverage Details:
Deductible Buy-Back or Buy-Down
Wind / Hail / Tornado Parametric
Hurricane Parametric
Nationwide Availability: Eligible for properties located in all 50 states.
Primary Policy Requirements:
Triggered automatically by a covered claim under your primary homeowners insurance policy.
The primary policy’s Dwelling coverage (Coverage A) limit must be greater than $250,000.
Eligible Property Types:
Residential: HO3 / HO5 (Standard Homeowners), HO6 (Condo Unit-Owners), and DP3 (Rental/Landlord Homes).
Wind Pools: Includes properties utilizing state-sponsored windstorm coverages (such as TWIA).
Exclusions: Manufactured and mobile homes are not eligible.
Fast Claim Target: Designed for rapid resolution, with a typical processing target of under 60 days.
- Multi-Peril States (Wind, Hail & Tornado): Available in AR, CO, GA, IN, IA, KS, KY, MO, OH, OK, TN, and TX. Coverage Limits: $2,000 to $25,000
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Tornado-Only States: Available in AL, IL, MS, and NE. Coverage Limits: $2,000 to $15,000
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Flexible Integration: Functions as either a stand-alone policy or a traditional deductible buy-down.
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Per-Structure Underwriting: Policies are written on a per-structure basis (e.g., a home with a detached garage requires 2 separate policies).
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Waiting & Reset Periods:
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5-day waiting period after purchase before coverage becomes active.
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30-day reset period required following a claim payout before coverage fully restores.
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Rapid Cash Payout: Direct deposit funds are typically issued within 7 to 10 days of a qualifying storm.
Available for individual-owned properties:
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Primary & Secondary Residences: Site-built homes, vacation homes, and multiple property portfolios.
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Alternative & Mobile Housing: Mobile homes, manufactured homes, and tiny homes.
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Specialized Property Uses: Landlord/rental properties, active farms, and vacant homes.
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Geographic Availability: Specific to coastal regions, including Florida, the Gulf Coast, North Carolina, South Carolina, and the Northeast US.
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Target Property Value: Designed for properties with a total market value of $1 million or more (combining the dwelling with detached structures like seawalls, docks, landscaping, outdoor art, and beach erosion protection).
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Note: Values under $1 million require underwriting approval.
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Eligible Residential Property Types: HO3 / HO5 (Standard Homeowners), HO6 (Condo Unit-Owners), and DP3 (Rental/Landlord Homes).
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Coverage Limits: Flexibly scale from $10,000 to $10,000,000.
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3 Custom Trigger Options: Select from three tailored data triggers, with activation starting at wind speeds of 65 MPH.
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Complete Transparency: Your exact trigger event, payout amounts, and insured structures are completely agreed upon at policy inception—allowing you to know exactly how your coverage functions before a storm even forms.
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Paid in Days: Payouts are issued rapidly once the objective wind speed and corresponding economic loss are confirmed at or near your insured location.
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Bypass the Adjuster: Bypasses traditional physical property inspections entirely—no field adjuster is ever required.