DISCLAIMER: This is only a brief overview of general coverage issues. Actual coverage is determined by the coverage terms, definitions, and exclusions in each individual insurance policy.
Understanding Your Insurance Coverage —Windstorm Deductibles:
It is important that policyholders understand that insurance companies apply windstorm deductible percentages to the insured property limit; not to the gross amount of the loss. In other words, property insured for $100,000 with a 5% windstorm deductible has a $5,000 deductible for a windstorm loss. If that property suffered a windstorm loss of $20,000 the policy would pay $15,000 ($20,000 less the $5,000 windstorm deductible).
(Many policyholders mistakenly believe that windstorm deductibles are applied to the gross amount of the loss. In the example above, they expect a $1,000 windstorm deductible and are disappointed to learn that the actual windstorm deductible is $5,000. Please note that insurance companies also apply earthquake deductibles to the insured property limit; not to the gross amount of the loss.)