Impact Window Insurance Payback Estimator
Model how long insurance savings take to repay the premium for upgrading to impact-rated windows. Enter the incremental cost and annual premium reduction, then optionally include deductible relief, service life, and a discount rate to estimate payback and net present value.
Insurance discounts and deductible structures vary by carrier. Confirm eligibility requirements and mitigation credits before committing to upgrades.
Examples
- $12,000 upgrade, $650 annual discount, $2,000 deductible reduction every 12 years, 20-year life, 4% discount rate ⇒ Annual benefit (insurance + averaged deductible): $816.67 • Simple payback: 14.69 years • Net present value over 20 years: -$901.23
- $9,500 upgrade, $500 annual discount, optional fields blank ⇒ Annual benefit (insurance + averaged deductible): $500.00 • Simple payback: 19.00 years • Net present value over 20 years: -$2,704.84
FAQ
How do tax credits factor into the model?
Add the credit amount to the annual benefit as an equivalent yearly value or subtract it from the upgrade cost before calculating.
Can I include maintenance savings?
Yes. Add expected annual maintenance savings to the insurance discount before entering it.
What claim frequency should I use?
Use historical hurricane or severe storm data for your region. Coastal homeowners often use 8–12 years between deductible-triggering events.
Does the NPV assume equal benefits every year?
Yes. Averaged deductible savings are spread evenly across the service life to simplify the present value calculation.
Additional Information
- Deductible reduction is averaged across the expected claim frequency to create an annualized benefit stream.
- Discount rate reflects your opportunity cost of capital; increase it for higher-return alternatives or inflation expectations.
- Service life covers how long the windows are expected to remain installed without major replacement or warranty claims.