HOA Insurance Deductibles: Wind, Hail, Water & Percentage Deductibles Explained
Deductibles are one of the most overlooked parts of an HOA master policy, and one of the most expensive to get wrong. The structure of your deductibles decides who pays — the association, the carrier, or individual owners — when a claim happens.
Flat vs. percentage deductibles
A flat deductible is a fixed dollar amount per claim. A percentage deductible is a share of the insured value, which on a large building can be tens or hundreds of thousands of dollars. Many associations don't realize a single storm could trigger a percentage deductible far larger than their reserves.
Wind, hail, wildfire, and water
Carriers increasingly apply separate, higher deductibles for wind, hail, wildfire, and water damage in higher-risk regions. These peril-specific deductibles often hide the real out-of-pocket exposure your board would face in a claim.
Who actually pays
When a master-policy deductible is high, the cost frequently lands on the association's budget — or gets passed to owners through a special assessment. Reviewing how your deductibles are structured is the first step to avoiding a surprise.
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