Hail Deductible Buyback Deadline Approaching

As we mentioned in our last issue, we added a Hail Deductible endorsement to the 2020 Property Form. This increases the deductible that applies to a member’s building or structure when damaged by a hail event. It also allows us to share the risks of hail in our state in order to keep the Property program competitive. As a result of this endorsement, your deductible will be 2% of the value of the damaged structures, subject to a minimum $5,000 deductible and a maximum of $50,000, or the highest deductible shown on your property schedule.

To calculate this deductible, take the value of structures that would be subject to loss and multiply it by 2%. If only one building structure is at risk, that would be your value. If five structures could be subject to risk from the same storm, then use the total value of all five structures.

Members should also consider including deductible amounts in their budgets, or if that is difficult, consider building up funds gradually so when the next major hail storm hits the district can pay the higher deductible.

While members build their funds, one way to alleviate a financial hit is the Hail Deductible Buyback endorsement. This endorsement allows a district with scheduled property to “buy back” the deductible to $5,000 rather than the 2% value of damaged property. The cost for this buyback is 30% of a Member’s property contribution (excluding contents). Please note that the cost will not be pro-rated but fully earned at the time coverage is bound.

May 1 is the deadline to purchase the buyback endorsement for the 2020 season. For more information or pricing, please contact us at pc@csdpool.org.