A homeowner tells you their deductible is $1,000. Their declarations say 2% wind/hail on a $350,000 dwelling. That is $7,000, and it is the first number to settle on a hail job.
A wind hail deductible is a separate deductible for wind and hail losses. It is either a flat amount or a percentage of the Coverage A limit, which covers the dwelling. On a wind or hail claim, it takes the place of the policy's regular deductible.
Carriers have moved many policies to percentage deductibles to hold premiums down, and homeowners often miss the change. Have the homeowner pull the declarations from the carrier's app or their agent. Then run the math together before the claim is filed or the storm inspection becomes a signed contract.
This guide follows a homeowners policy. Commercial differences are covered at the end of the calculation section.
How a wind hail deductible works
A flat wind/hail deductible is a fixed dollar amount, such as $2,500. A percentage deductible usually runs 1% to 5% of the dwelling limit, and hurricane deductibles can run as high as 10%.
The percentage multiplies the Coverage A limit, not the loss and not what the house would sell for. A 2% deductible on a $350,000 dwelling is $7,000 whether the storm took ten shingles or the whole roof.
When it applies, it is the only deductible in play. ISO's Windstorm or Hail Percentage Deductible endorsement, HO 03 12, puts it plainly: "No other deductible provision in the policy applies to direct physical loss caused by windstorm or hail."
Read the form listed on the declarations to confirm the policy uses the same wording.
Where to find it: declarations or endorsement
The $1,000 the homeowner remembers is the all-other-perils (AOP) deductible. That is the base deductible printed on the declarations page.
Look for the wind/hail percentage on the declarations first. Then read the endorsement that adds it, which on ISO forms is HO 03 12.
The endorsement's percentage blank can be left empty when the declarations or another part of the policy shows the percentage. An empty blank does not mean there is no percentage deductible.
Use the declarations for the policy term in force on the date of loss. If the storm came before the last renewal, that is last year's page. The term matters because the dollar deductible rises whenever Coverage A does, including increases from an inflation-guard endorsement.
Some states also require carriers to send a separate deductible notice when the policy is issued or renewed, and a notice the homeowner kept is one more place to look.
How to calculate a percentage deductible
Multiply the Coverage A limit by the percentage to get the deductible. Subtract the deductible from the covered loss to get the payment, which the policy limit then caps.
Here is the same $350,000 dwelling at 1% and 2%, at replacement cost with no depreciation:
| 1% deductible | 2% deductible | |
|---|---|---|
| Deductible on Coverage A of $350,000 | $3,500 | $7,000 |
| Claim pays on an $18,000 covered loss | $14,500 | $11,000 |
| Claim pays on a $6,000 covered loss | $2,500 | $0 |
The last row is a conversation to have early. At 2%, a $6,000 covered loss pays nothing. The homeowner should know that before deciding whether to file.
The roof alone may not be the whole loss, though. Under HO 03 12, the deductible comes off once per loss, against the total loss under all Section I property coverages, including dwelling, other structures, and contents. The carrier pays only the part that exceeds it.
So document every exterior item the storm hit, from gutters and screens to the fence and shed. Remind the homeowner to list interior damage too.
On an actual cash value roof, depreciation comes off first, and the deductible comes off what is left.
Take the same house. If the $18,000 roof is 12 years into a 20-year life, straight-line depreciation takes 60%, which leaves $7,200. The 2% deductible takes $7,000 of that, so the first check is $200.
On a replacement cost policy, the deductible comes off the first check, the actual cash value payment. Held depreciation follows once the work is done. ACV vs. RCV walks through that stack.
When the carrier's estimate arrives, check the deductible on its summary page against the declarations. Point out any difference to the homeowner. Which deductible applies is theirs to raise with the carrier or a public adjuster.
Commercial property differs in two ways. First, ISO's commercial windstorm or hail percentage endorsement takes a separate deductible per storm for each damaged building. The personal property at each building and personal property in the open each take their own deductible too.
Each deductible is figured on its own limit or, under blanket insurance, on the property's value on the latest statement of values. A 2% deductible on a $5 million building is $100,000 for that building alone.
Second, coinsurance can cut the payment, so an underinsured building loses twice.
Wind and hail vs. named storm and hurricane deductibles
On the coast, a policy can carry more than one storm deductible, and the question is which one the storm triggered. The NAIC sorts them into three types:
| Deductible | Applies to |
|---|---|
| Wind/hail (windstorm) | Any wind or hail damage, such as a tree blown onto the roof on a windy day |
| Named storm | Any named storm, including tropical storms |
| Hurricane | Storms the National Weather Service or National Hurricane Center categorizes as hurricanes |
The storm's name does not settle which one applies. The policy's trigger does, and state law often limits it. As of 2023, the NAIC counted 19 states and D.C. with some form of hurricane or named-storm deductible, and the References list them.
Common triggers are the Weather Service naming a storm, a hurricane watch or warning, a set wind speed or category, and a time window before and after the storm.
North Carolina shows how exact that window can be. There, the named-storm deductible typically starts with the first Weather Service advisory, watch, or warning for any part of the state. It runs until 24 hours after the last watch or warning ends or the last advisory issues, whichever is later.
Your part as a contractor is dating the damage. Use a hail or wind report for the address, fresh spatter marks and bruising, and dated photos. The homeowner, a public adjuster, or an attorney uses that record to argue which deductible applies.
That argument is a coverage question. Minnesota bars a residential contractor paid from insurance proceeds from interpreting policy terms unless licensed as a public adjuster.
Can a roofer waive the deductible?
No. The deductible is the homeowner's to pay. Several states bar contractors from paying it or promising to cover it, including these four:
| State | What the law says |
|---|---|
| Texas | The insured must pay any deductible on a first-party property claim. A seller paid from claim proceeds who pays, waives, absorbs, or rebates it without the insurer's consent commits a Class B misdemeanor. |
| Florida | A contractor who knowingly pays, waives, or rebates any part of a deductible, with intent to defraud, commits a third-degree felony. |
| Minnesota and Oklahoma | A contractor paid from insurance proceeds may not advertise or promise to pay any part of a deductible, and the insurer need not consider its estimate. The rule covers residential contractors in Minnesota and, since November 1, 2022, roofing contractors in Oklahoma. |
What you can do is address the deductible in the contract from the start, with a clause stating that the homeowner pays it.
Texas requires a version of that clause. A contract of $1,000 or more expected to be paid from claim proceeds must state, in at least 12-point bold type, that the insured must pay the deductible.
Handled this way, the homeowner who expected $1,000 sees the $7,000 on their own declarations, at the kitchen table with you. They don't first meet it on a carrier check that comes up short.
FAQ
What does a 2% wind hail deductible mean?
It means the homeowner pays the first 2% of the Coverage A dwelling limit on a wind or hail loss. On a house insured for $300,000, that is the first $6,000.
Can the deductible depend on the roof's age?
Yes. Some carriers set the percentage by roof age, so an older roof carries a higher deductible. One Missouri carrier's rules manual, for example, applied 1% to roofs under 15 years old and 2% to roofs 15 or older.
Is a wind and hail deductible the same as a hurricane deductible?
No. A wind and hail deductible usually applies to any wind or hail damage. A hurricane deductible applies only when the policy's hurricane trigger is met.
What if two storms hit the same roof?
Each storm is usually a separate loss with its own deductible, because homeowners forms apply the deductible to each loss. That is one more reason to date the damage to a single storm.
Florida's hurricane deductible is one statutory exception. On a personal residential policy, it applies once per calendar year. For a later hurricane that year, the insurer may apply the greater of the remaining hurricane deductible or the all-other-perils deductible.
Wind hail deductibles and Frontera
Frontera's Coverage Analysis reviews every form in the policy, tracks how endorsements modify the base coverage, and links each finding to the policy language with a clickable page citation.
It is built for roofing contractors and public adjusters who need to know what the policy says before they scope the job.
References
- ISO Form HO 03 12 10 93, Windstorm or Hail Percentage Deductible (copy hosted by Auto Club)
- Chris Boggs, "Property Deductibles: Subtracted from the Limit or the Loss," Big "I" Virtual University (updated 2026)
- Insurance Xdate, summary of the ISO commercial Windstorm or Hail Percentage Deductible endorsement (2012 edition)
- NAIC Center for Insurance Policy and Research, "Hurricane Deductibles" (2023). States with some form of hurricane or named-storm deductible: Alabama, Connecticut, Delaware, Florida, Georgia, Hawaii, Louisiana, Maine, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia, and D.C.
- Insurance Information Institute, "Background on: Hurricane and windstorm deductibles"
- Progressive, "What is a hurricane deductible?" (2024)
- Fla. Stat. § 627.701 and § 817.234(7)(d)
- S.C. Code § 38-75-755
- 18 Del. C. § 4140
- Tex. Bus. & Com. Code § 27.02 and Tex. Ins. Code § 707.002
- Minn. Stat. § 325E.66
- Okla. Enrolled H.B. 1940 (2022), codified at 59 O.S. § 1151.30, enrolled bill text
- Kentucky Department of Insurance, "Consumer Awareness Announcement: Wind and Hail Deductibles" (June 2022)
- North Carolina Department of Insurance, "Windstorm and Hail" (viewed October 2026)
- Xactware Help, "View Loss Recap in Xactimate desktop" (viewed October 2026)
- Westfield Insurance, "What Is a Wind and Hail Deductible in Homeowners Insurance?" (2026)
- IRMI, "Wind or hail deductible"
- Auto Club (AAA) Missouri homeowners rules manual, Rule 35.6A, Windstorm or Hail Percentage Deductible (2017)
This article is for educational purposes and does not constitute legal advice. Policy forms and state law change; confirm the issued policy and current rules for each claim.