Shopping insurance renewals and hail and wind deductibles are set at 5%. The deductible would be higher than the cost of buying a new roof. Several agents have recommended a product called 'buy down' as a 3rd party to cover that gap. Any experience or recommendations?
A 5% wind and hail deductible could end up being more than the cost of replacing your roof. This means that you would basically be paying for most roof claims yourself. The buy down is a separate insurance policy that reimburses you for some or all of that large deductible if you have a covered wind or hail claim. These can make sense in some situations, especially in areas that often have hail. However they should be reviewed carefully. You'll want to make sure that the company issuing the policy is strong financially, that coverage matches your policy, and that the limit is high enough to reduce your exposure. It may be worth it to compare the total cost of the 5% deductible and the buy-down policy against the premium of a lower deductible homeowners policy.