Wind & Hail Deductible Coverage – Is There a Catch?
Living in a storm-prone area has its challenges, and I recently got a quote for new homeowners insurance. The minimum wind and hail coverage from this company is set at 2%, while other insurers are offering 1%. They also provide wind and hail deductible coverage through Sola Insurance. My deductible would be around $8,900 with the coverage kicking in at $9,000 for storms classified as EF3 or higher, or with a 65% chance of hail damage.
This policy is approximately $1,000 to $1,500 cheaper per year than the next best quote. However, it’s tough to predict whether a storm will strike this weekend and potentially affect my savings. At the current rate of savings, it seems it would take about 3-4 years to offset the difference in the wind and hail deductible.
Has anyone had experience with Sola Insurance or similar deductible coverage options?
When considering wind and hail deductible coverage, it’s essential to weigh the potential savings against the risk factor and the specifics of the coverage. Here are a few points to keep in mind:
Understanding the Deductible: With a deductible of about $8,900, you’ll have to pay a significant amount out of pocket before your insurance kicks in. Ensure that you’re comfortable with that potential expense, especially if you live in an area prone to severe storms.
Comparison with Alternatives: The fact that other insurers are quoting a 1% deductible indicates that you might have more flexibility with those plans. While the Sola Insurance plan is cheaper, the higher deductible could leave you financially vulnerable if a storm hits.
Sola Insurance Reputation: Before proceeding, it’s worth researching Sola Insurance. Look for customer reviews, check their financial stability, and see how they handle claims, particularly for wind and hail events. You want to ensure that they have a reliable track record.
Assessing the Risk: Since you live in an area where storms are common, consider how frequently you experience severe weather. If you seldom see EF3 storms or significant hail damage, the higher deductible could potentially save you money. However, if severe storms are frequent, the risk may not be worth the savings.
Storm Prediction: Unfortunately, predicting storms accurately is not possible in the short term. If you’re considering this insurance, you might want to establish a plan that allows you to reassess your coverage annually based on your experience with storms.
Consider a Broker or Agent: If you’re feeling uncertain about these options, a licensed insurance broker can provide valuable insights and help you navigate your choices based on your specific needs.
Ultimately, it’s about finding a balance between cost and coverage that works for your financial situation and peace of mind. If the potential out-of-pocket costs seem intimidating, it might be worth considering other options, even if it comes at a slightly higher annual premium.