A wind/hail deductible is the amount your association pays out of pocket before insurance pays on a wind or hail claim — and in Kansas City it’s increasingly a percentage of the building’s insured value rather than a flat dollar figure. On a multifamily building, a 1–2% wind/hail deductible against a multi-million-dollar insured value can run into six figures, so the association funds a large share of even a covered siding loss. The number that surprises KC boards usually isn’t the repair — it’s the deductible. Knowing your deductible structure before a storm is one of the most useful things a board can do. This page explains how percentage deductibles work, why they’re climbing in KC, and how the deductible reshapes both your claim decision and your funding plan.
What is a percentage-based wind/hail deductible?
It’s a deductible figured as a percentage of the building’s insured value, applied specifically to wind and hail losses — separate from, and usually larger than, the policy’s standard all-perils deductible. Instead of a flat $5,000, a 2% wind/hail deductible on a building insured for $5 million is $100,000. The percentage looks small; the dollar figure isn’t, because it’s multiplied against the whole insured value of the structure.
| Deductible type | How it’s calculated | Example on $5M insured value |
|---|---|---|
| Flat all-perils | Fixed dollar amount | $5,000 |
| 1% wind/hail | 1% of insured value | $50,000 |
| 2% wind/hail | 2% of insured value | $100,000 |
| 5% wind/hail | 5% of insured value | $250,000 |
(Illustrative model, not an actual policy.) The exact percentage and the base it applies to — whole-building value, per-building, or per-occurrence — are in your policy. Read them before a storm, not after.
Why are KC deductibles rising?
Because hail losses in the region are climbing fast and insurers are passing the cost through. Severe convective storms (hail, wind, tornado) drove $54 billion in U.S. insured losses in 2024 (Insurance Information Institute). In Kansas specifically, storm-season claims reached about $612 million in 2024, with home insurers paying $1.36 in losses for every $1 of premium and raising rates roughly 15% in 2025 (Insurify, citing NAIC data).
When carriers pay out more than they collect, they respond two ways: higher premiums, and more risk shifted onto policyholders through bigger percentage-based wind/hail deductibles. For a KC association, that means the master policy still covers hail — but the association’s share of each claim keeps growing. Plan for a larger out-of-pocket number than last renewal.
How does the deductible change the claim decision?
The deductible decides whether a claim is even worth filing and how much the association self-funds on a covered loss. If hail damage to the siding is, say, $80,000 but the wind/hail deductible is $100,000, there’s no net recovery — the association pays the whole repair and the claim only counts against the loss history. On a larger loss the claim pays, but the association still funds the deductible from reserves, an assessment, or a loan.
So the board’s analysis is simple: estimate the siding-and-roof loss, compare it to the wind/hail deductible, then decide whether and how to file. This is exactly why siding shouldn’t be under-scoped — scoping siding together with the roof can push a marginal claim above the deductible. See filing a multifamily siding insurance claim.
How does the deductible feed the funding plan?
The deductible is a direct input to the funding side. Whatever the association pays out of pocket — the full repair below the deductible, or the deductible portion on a covered loss — has to come from reserves, a special assessment, or a loan. And because neither Missouri nor Kansas requires associations to fund reserves, many KC boards meet the deductible with little saved, which turns it straight into a special assessment.
The practical sequence:
- Know the deductible before the storm — the percentage and the base it applies to.
- Estimate the out-of-pocket share for a realistic hail loss.
- Pre-plan the funding for that share — reserves, assessment, or loan.
- Reduce future exposure with impact-resistant cladding.
A board that has already worked out “what a hail deductible would cost us, and where the money comes from” is far less likely to be caught off guard by a surprise assessment. See how associations pay for siding.
How does impact-resistant siding help with deductibles?
Impact-resistant cladding doesn’t lower the deductible directly, but it reduces how often you hit it and strengthens your standing with carriers in a hardening market. A building re-clad in Class 4 steel or hail-warranted engineered wood files fewer hail claims, which protects loss history, premium trajectory, and renewability — all of which matter more as KC insurers tighten. Some carriers also offer impact-resistance credits, though availability varies and should be confirmed.
So the durable material is the long-game answer to rising deductibles. You can’t easily change the deductible, but you can reduce how often a hailstorm forces you to pay it. See impact-resistant siding for KC hail.
FAQ
Q: What is a wind/hail deductible on an HOA master policy? It’s the amount the association pays out of pocket before insurance pays on a wind or hail claim, often figured as a percentage of the building’s insured value rather than a flat dollar amount. On a multifamily building, a 1–2% wind/hail deductible can reach six figures, so the association self-funds a large share of even a covered loss.
Q: Why is our association’s hail deductible so high? KC-area hail losses are rising fast, so insurers are shifting risk onto policyholders through higher percentage-based wind/hail deductibles. Kansas insurers paid $1.36 per $1 of premium in 2024 and raised rates about 15% in 2025. The master policy still covers hail, but the association’s share of each claim keeps growing.
Q: Should we file a hail claim if it’s near the deductible? Compare the realistic siding-and-roof loss to the wind/hail deductible first. If the loss is below the deductible there’s no net recovery, and the claim only affects loss history. Scoping siding together with the roof can push a marginal claim above the deductible, so document both before deciding.
Q: Can impact-resistant siding reduce our deductible? Usually not the deductible itself, but it reduces how often you hit it by filing fewer hail claims, and it strengthens your standing with carriers as the KC market tightens. Some insurers offer impact-resistance credits, but availability varies — confirm with your carrier. The durable material is the long-game hedge against rising deductibles.
Q: What insured value does the percentage apply to? That’s set by your policy — it might be the whole-property value, a single building’s value, or a per-occurrence figure. The base matters as much as the percentage, because it determines the dollar amount. Read both in the policy before a storm. (General information, not insurance advice — confirm your deductible structure with your agent and master policy.)
CTA
The most useful number a KC board can have on hand is what a hail deductible would actually cost the association — before the storm. Get a siding replacement review and we’ll help you scope a realistic hail loss and map the out-of-pocket share.
Related: filing a multifamily siding insurance claim · hail damage and insurance for multifamily · impact-resistant siding for KC hail · how associations pay for siding