Commercial Property Wind Deductible Reserve

Quantify the wind-loss cash cushion you need before storm season. Enter the insurable value, wind limit, and deductible percentage to blend the deductible bill with any coinsurance penalty and optional business interruption buffer. Add existing reserves to see the shortfall you still need to fund before the next named-storm renewal meeting.

Use the total insurable value subject to your wind deductible.
Aggregate wind limit after all layers or quota shares.
Percentage of the limit you must absorb on a named-storm loss.
Defaults to 100%. Enter the required coverage percentage to test for penalties.
Optional contingency added to the reserve for BI or debris removal cash needs.
Current cash earmarked for wind losses—used to show any shortfall.

Planning aid only—confirm deductible, penalty, and business interruption terms with your broker and carriers before funding decisions.

Examples

  • $40,000,000 TIV, $35,000,000 wind limit, 5% deductible, 100% coinsurance, $500,000 buffer, $1,000,000 on hand ⇒ $6,250,000.00 USD additional reserve required
  • $18,500,000 TIV, $18,500,000 limit, 3% deductible, coinsurance blank, buffer blank, no reserve ⇒ $555,000.00 USD additional reserve required

FAQ

What happens if my limit exceeds the required coinsurance amount?

When the policy limit meets or exceeds the coinsurance requirement, the penalty term drops to zero and the reserve covers only the deductible plus any optional buffer.

Can I model layered programs with different deductibles?

Yes—enter the blended limit and deductible percentage that applies to the coverage tower protecting the location you are evaluating. Run separate scenarios for each site if deductibles vary.

How should I treat hurricane deductible buy-down policies?

Subtract the buy-down reimbursement you expect to receive from the buffer input so the reserve reflects the cash you must still produce after insurance responds.

Additional Information

  • Reserve target equals deductible + any coinsurance penalty + optional buffer, less the cash you already earmarked.
  • Coinsurance penalty triggers when your policy limit trails the required percentage of replacement cost.
  • Keep limit, deductible, and buffer inputs in current-year dollars so the reserve matches upcoming renewal exposure.

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