What is Deductible Buy Back Insurance
Deductible buy back coverage is designed to help reduce large out-of-pocket deductible exposure after a covered loss. For homeowners, business owners, and property owners in high-risk areas, this coverage can provide a practical way to lower out of pocket expenses when a loss occurs.
A deductible buy back policy may help reimburse or reduce a portion of the deductible owed under a primary insurance policy. This can be especially valuable when a property policy has a high percentage deductible or a large fixed deductible that creates a major financial burden at the time of loss.
Get a QuoteWho Should Consider This Coverage?
Deductible buy back coverage may be a good fit for property owners, businesses, homeowners associations, real estate investors, and insureds with large deductibles for wind, hail, flood, fire or earthquakes. It can also be useful for customers who want a more predictable financial plan before a major loss occurs.
What is Parametric Insurance
Parametric Insurance pays based on a predefined trigger or measured event, such as wind speed, hail size, rainfall amount, earthquake intensity, or other objective data point. Rather than waiting for a traditional damage adjustment the payment is made based on the triggering event and terms. Parametric is not dependent on any other coverage you may or may not have and can even be considered a balance sheet item for protection against loss.
Get a QuoteWho Should Consider This Coverage?
Parametric insurance is a good fit for property owners, businesses, homeowners associations, real estate investors, and insureds whose business or property is exposed to wind, hurricane, flood, fire, earthquake, natural disasters or other events that may shut your business down or stop revenue. It is useful for customers who want a more predictable financial plan before a major loss occurs.
Common Deductible Buy Back Options
Traditional Reimbursement Buy Back
The primary insurance policy handles the claim first. After the covered claim is paid, the deductible buy back coverage may reimburse part of the deductible, subject to the policy terms.
Parametric Buy Back
This option pays based on a defined weather event or trigger, such as wind speed, hail size, rainfall, or other measurable data, rather than waiting for a traditional damage adjustment.
Deductible Gap Layer
This structure may sit below the primary deductible and help cover a defined deductible gap as part of the insurance structure, depending on how the policy is written.
Quick Example of how deductible buy back works
In this example, deductible buy back coverage reduced the insured’s net out-of-pocket responsibility from $20,000 to $5,000.
Need Help Reducing Your Deductible Exposure?
Will Rogers Insurance can help review your current deductible and discuss available deductible buy back options.
(888) 528-0700 Request a Quote