As spring storms make way for the sunshine of summer, some Cincinnati homeowners are finding damage that these storms have left behind. High winds and hailstorm damage is being found on homes across the area. Some homeowners are surprised to find out they have a homeowner’s insurance deductible that is higher than it was when they signed up for their insurance policy. How could that be?
Over the past several years, some home insurers in the state of Ohio rolled something called a wind/hail percentage deductible on their policy renewals. This means that a policy’s deductible on a wind/hail claim is no longer the $1,000 deductible you signed up with two years ago, but now it is 1% of your Coverage A (Dwelling) amount. Some insurers will allow you to buy back your lower deductible, but oftentimes homeowners do not realize it has been changed until it is too late.
For example: Joe signed a policy with Nationwide five years ago. His house is insured at $275,000 and his deductible at the time he signed up was a flat $1,000. Two years ago, at renewal, his deductible was raised to 1% for wind/hail. His roof sustained damage from a storm that came through this Spring. His wind/hail deductible is now $2,750.
Even worse – the largest writer of homeowners insurance in the state – State Farm has implemented a percentage deductible for all perils to many of their policyholders. Customers that have had $500 or $1,000 deductibles for many years are now finding they have a 1% or even 2% deductible of their Coverage A dwelling amount for any loss sustained.
It is always a good practice to review your insurance documents carefully at each renewal. If you have any questions or would like help finding a policy with a flat deductible, give us a call at Advantage Insurance Network.