1️⃣ Traditional Reimbursement Buy-Back (Most Common) How it works Primary policy handles the claim – Deductible buy-back reimburses part of the deductible after payout
2️⃣ Parametric (Weather Trigger) Buy-Back – How it works Pays based on weather data, not damage
3️⃣ Deductible Gap Layer (True Insurance Layering) – How it works Policy sits under the primary deductible and Pays as part of the claim, not after
3️⃣ Deductible Gap Layer (True Insurance Layering) How it works Policy sits under the primary deductible Pays as part of the claim, not after
Quick Example
| Covered roof loss | $25,000 |
| Primary policy deductible | $15,000 |
| Buy-back target deductible | $5,000 |
| Potential buy-back benefit | $10,000 |
In this example, the deductible buy-back coverage helps reduce the insured’s net out-of-pocket responsibility from $15,000 to $5,000, subject to policy terms and claim approval.