How percentage deductibles work
Some West Virginia policies apply a percentage deductible to wind and hail, or to every peril, instead of a flat dollar amount. The percentage is usually applied to Coverage A (the dwelling limit), not to the size of the loss. On a $265,000 dwelling limit, a 1% deductible is $2,650 and a 2% deductible is $5,300 — illustrative figures that show how quickly the dollars grow.
Using the ladder
The ladder shows what you would pay and what the policy would pay at 0.5%, 1%, 2%, 3% and 5%. It is handy at renewal time, when a lower premium sometimes comes with a higher percentage deductible.
Deductibles and appraisal
A larger deductible makes the amount of loss more important, not less: every dollar the carrier’s estimate misses comes straight out of your pocket. If the loss sits just above the deductible, a small scope error can decide whether anything is paid at all.
Questions about this tool
Is the percentage based on the loss or the coverage?
Usually the coverage limit shown on the declarations page. Read the deductible endorsement to be sure.
Does appraisal change my deductible?
No. Appraisal sets the amount of loss; the deductible is then applied under the policy terms.