Homeowners Facing Big Deductibles? Mission Says it Has a Buyback Plan for That

It’s not unusual in today’s housing market to own a home valued at $1 million or more. It’s also not that rare for the insurance coverage on a high-end home to carry a $100,000 wind deductible.

Mission, a group of specialty underwriters and program administrators based in Alpharetta, Georgia, this month announced a new program designed to ease the burden of a large deductible: ShelterWind provides a hail and all-wind deductible-buyback plan for middle and high-market homeowners, the company said in a news release.

The policy is available in all 50 states but is optimal in coastal areas vulnerable to windstorms, for properties valued at up to $50 million, the company said. It’s backed by Certain Underwriters at Lloyd’s of London.

Deductible buybacks and financing programs have been available for decades. Vertus Insurance Partners and Zurich North America expanded their buyback products to Southeastern states in 2020. ShelterWind’s program aims to make it more affordable and more available than simply reducing the deductible amount on a primary homeowner’s policy. In many cases, property insurance carriers in coastal areas now require large deductibles of at least 5% or more on primary policies.

ShelterWind provided this hypothetical example: A home with a $100,000 wind deductible would see that deductible reduced to $20,000 with the buyback program. The premium on the program may be about $1,800 a year. At that rate, it would take more than four decades for homeowners to reach the cost of retaining the exposure themselves.

Florida insurance agency leaders said they are not aware of any agents that are offering the buyback program at this time. They noted that some parametric policies may be available for similar coverage.

Mission is led by CEO Jim Dwane. Simon Hudson is CEO of ShelterWind.

Topics Homeowners