What is a percentage-based wind deductible?

Unlike a flat-dollar deductible, a percentage-based deductible is calculated as a percentage of the total insured value of the building. For example, a 2% wind deductible on a building insured for $5 million would mean a $100,000 deductible. These are common in hurricane-prone coastal areas and represent a significant out-of-pocket cost for the property owner.

Is wind damage from a hurricane covered differently than from a regular storm?

In some policies and regions, yes. Policies may apply a separate, higher deductible for named hurricanes compared to other windstorms. The definition of what constitutes a hurricane trigger varies by policy and may be tied to official storm declarations, sustained wind speeds, or other criteria.

Does wind and hail insurance cover cosmetic damage?

Some policies exclude cosmetic damage, particularly to metal roofs and siding, where hail may cause dents without compromising the functional integrity of the material. Other policies cover all damage regardless of whether it is functional or cosmetic. Review your policy language carefully.

How can I reduce my wind and hail insurance costs?

Installing wind mitigation features such as hurricane straps, impact-resistant windows, reinforced garage doors, and upgraded roofing materials can reduce premiums. Many insurers also offer credits for buildings that meet specific wind resistance building codes or have been inspected and certified for wind resilience.

Wind and Hail Insurance

Severe windstorms and hail cause billions in property damage every year. Make sure your apartment building has the right coverage for these increasingly common and costly perils.

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What It Covers

Wind and hail insurance covers physical damage to your apartment building caused by windstorms, hurricanes, tornadoes, and hailstorms. This includes damage to the roof, siding, windows, doors, and other exterior components, as well as interior damage caused when wind or hail breaches the building envelope and allows water to enter.

In many parts of the country, wind and hail coverage is included as a standard peril in your commercial property policy. However, in coastal areas and regions prone to severe weather, wind and hail may be excluded from the base property policy or subject to a separate, higher deductible. In these areas, apartment owners may need to purchase a standalone wind and hail policy or a wind-only policy from a state wind pool.

The coverage pays for repair or replacement of damaged building components, removal of debris, and temporary protective measures such as tarping a damaged roof. It also typically includes business income coverage for rental income lost while wind or hail damage is being repaired.

Why Apartment Owners Need It

Wind and hail are among the most frequent and costly causes of property damage in the United States. Hailstorms alone cause over $10 billion in insured losses annually. A severe hailstorm can destroy an apartment building's roof in minutes, and the cost to replace a commercial roof ranges from $50,000 to well over $500,000 depending on the building size.

Apartment buildings are particularly vulnerable because of their large roof surface areas and the number of windows and exterior surfaces exposed to the elements. A single storm can damage dozens of windows, strip siding, puncture roofing membranes, and compromise building waterproofing. The resulting water intrusion can damage interiors, create mold problems, and displace tenants.

In coastal and hurricane-prone areas, standard property policies often exclude wind damage entirely or impose percentage-based deductibles that are much higher than standard flat-dollar deductibles. Understanding your wind and hail coverage, including deductible structure, is critical to knowing your actual financial exposure in a major storm.

What's Included

Roof damage from wind uplift, flying debris, and hail impact
Siding, window, and door damage from windborne materials
Interior water damage caused by wind-driven rain through a breached envelope
Damage to HVAC equipment, gutters, and other rooftop systems
Debris removal and emergency protective measures
Business income loss during the repair period

Cost Factors

Geographic location and historical storm frequency
Proximity to coastline for hurricane exposure
Roof type, age, and condition
Building construction materials and wind resistance ratings
Deductible type, whether flat-dollar or percentage-based
Installation of wind mitigation features such as hurricane straps or impact-resistant materials
Claims history for wind and hail losses