Susan didn’t panic when she got the call. A staff member at her Fort Worth private school told her that hail had torn through the roof over the gym and damaged several HVAC units. Living in Texas long enough, she’d seen plenty of hailstorms. What mattered now was getting things patched up and getting kids back in class.
But Susan did have real shock when the adjuster reviewed her insurance policy. When she bought her policy several years ago, the hail coverage had a typical 1% wind and hail deductible. A couple of years ago, the property insurance policy for her buildings had changes in the coverage options for storms. She found out the hard way that her hail deductible was now 3% of her building value. That amounted to more than $50,000 out of pocket before insurance would kick in for repairs. She nearly dropped the phone while talking to the insurance adjuster.
After calming herself a bit, she began to look to see if she had any options to bring that cost of repairs down. She realized that she was going to need to finance this round of repairs. But Susan did learn about something called a “hail deductible buy down” for the future. This is a separate policy that provides additional coverage to bring that deductible back down to where she expected it to be. Susan decided to do further investigation.
What Is a Hail Deductible Buy Down?
A hail deductible buy down is an extra insurance policy that helps reduce how much your school will have to pay out of pocket for a hail storm claim. Instead of being stuck with a 2% or 3% deductible based on your total insured property value, you can buy down your deductible to a lower amount depending upon how much fixed cost you are willing to pay each year.
For Susan’s school, the 3% deductible came out to more than $50,000. But a buy down policy could have dropped that amount closer to $15,000, depending on the structure of the policy and what limits were chosen.
Think of it like buying a buffer between your budget and a Texas-sized hailstorm. These separate policies are issued by specialty insurance companies, but that buffer sounded great to Susan. While it won’t stop the weather, it can keep your checkbook from taking the biggest direct hit.
Why So Many Schools Are Caught Off Guard
Deductibles used to be easy to plan for even though the storm property damage was frequent. As storm claims across Texas have surged over the last few years, many insurance companies started shifting deductibles higher and higher. Especially in North Texas. Many of these property insurers have also changed the terms of claim settlements for commercial property policies.
Many schools, just like Susan's, don’t realize these changes have happened. It’s often buried in the renewal paperwork. Or it’s explained in words that don’t mean much to school administrators until the claims process happens. That’s exactly what happened to Susan. She didn’t know her deductible amount had changed so drastically until it was too late. Fortunately, she still had replacement cost on her roofing materials rather than a roof payment schedule.
Deductible buy down policies are a way to push back against this trend of growing hail deductibles. They can’t remove the deductible altogether, but they can reduce it to a more manageable level.
Why a Buy Down Might Be Worth It
At first, Susan didn’t think she needed any extra coverage for wind. Her school had never had a big claim before. She figured the odds were in her favor and she didn't need the extra expense for this type of coverage.
But insurance isn’t about what you figure your odds are. It’s about preparing for what you can’t predict but can ruin you financially. We think of this as the Total Cost of Risk.
When she sat down and did the math, the picture became much more clear. A buy down policy might cost a few thousand dollars a year. But it would save her $30,000 or more if another storm hit which required a deductible payment.
More than that, it gave her breathing room. She wouldn’t have to worry about making huge cuts to other areas of her budget just to get repairs going. She could focus on keeping school running, not scrambling to cover unexpected costs.
Work With Someone Who Specializes in Private Schools
What Susan realized in the end was that she didn’t need more information. She needed the right information. That is where an experienced commercial insurance agent who specializes in Texas private schools can make all the difference.
The way insurance works for private schools isn’t the same as for homes or contractors. You’ve got larger property values, more people to protect, and much more on the line if something goes wrong.
That’s why working with an insurance agent who actually understands private schools matters. Someone who doesn’t just sell a policy, but knows what kinds of coverage help protect campuses, classrooms, and staff.
At Insurance For Texans, we work directly with private schools across the state through the True Texas Education Insurance program. We take time to look at your entire risk picture and build a plan that makes sense for your school.
Don’t Let a Storm Wipe Out Your Budget
Susan’s story isn’t rare. With Texas weather, it’s more common than you might think.
You can’t stop hail from hitting your school. But you can stop it from wrecking your budget.
If you’re not sure what kind of deductible you have or want to talk about how a hail buy down could work for your school, don’t wait until the sky turns gray.
Click the button below to connect with a specialist who knows what Texas schools need. Let’s make sure the next storm doesn’t turn into a financial disaster.