Buyback Basics
What is the total quoted cost, including the fee and tax?
$1,108.28.
This coverage helps reduce the amount a client pays toward a covered wind/hail deductible.
What is wind/hail deductible buyback?
A $500,000 building has a 1% wind/hail deductible. What is the deductible in dollars?
$5,000
These documents tell us the actual coverage, exclusions, deductibles, and conditions.
What are the policy forms and endorsements?
What is the original wind/hail deductible?
$10,000 per building.
This is the portion of a covered loss the insured is responsible for before applicable insurance payments.
What is a deductible?
A $750,000 building has a 2% wind/hail deductible. What is the deductible in dollars.
$15,000
Before promising payment for dents that only affect a roof’s appearance, check for this exclusion.
What is a cosmetic damage exclusion?
What deductible does the insured retain after the buyback?
$5,000 per building.
Buying down a deductible to $5,000 means the client still retains this ________ amount on a sufficiently large covered loss.
What is $5,000?
A $1 million building has a 3% deductible. A buyback reduces the retained deductible to $5,000. What is the maximum deductible layer being bought back.
$1,000,000 x .03 % = $30,000
Buy Back reduces the retained deductible to $5,000
The maximum Deductible Layer being bought back is $25,000
True or false: Buying down the deductible automatically changes an actual cash value roof settlement to replacement cost.
False. Verify the roof settlement provisions separately.
Does “$5,000 per building” mean the insured pays only $5,000 total if two buildings are damaged?
No. The retained amount applies separately to each building.
True or false: Deductible buyback automatically increases the building’s insurance limit.
false. It addresses the deductible, not an automatic increase in the building limit.
A building limit increases from $1 million to $1.2 million, while its deductible stays at 2%. How much did the deductible increase.?
$4,000? It increases from $20,000 to $24,000.
What is the maximum this buyback can pay for one occurrence?
$10,000, subject to the coverage terms.