Hail Deductibles: How They Work and Why They’re Becoming More Common

What is a hail deductible?

A hail deductible is the amount you pay before your insurance covers hailstorm damage, such as a damaged roof or siding. Unlike most home insurance deductibles, which are a set amount, a hail deductible is usually a percentage of the dwelling coverage.

For example, if your home is insured for $500,000 and your hail deductible is 2%, you would pay $10,000 before your insurance covers hail damage. Some carriers offer a set dollar amount for the hail deductible.

If hail is the main cause of damage to your home, that deductible applies instead of your standard homeowners insurance deductible.

People ask

Do you get to choose your hail deductible?

Yes, most insurers let you choose your hail deductible, typically between 1% and 5%. A higher deductible usually means lower insurance rates.

Why are insurers adding hail deductibles?

The growing number and severity of hailstorms have led insurers to implement separate hail deductibles to cover related claims costs.

The main reasons insurers add hail deductibles include:

Increasing hailstorms: Insurers review historical weather data to identify areas likely to be impacted by hailstorms and examine climate factors contributing to hail events.
Rising claims costs: Insurers review average hail-damage claim amounts and total industry losses over recent years to assess the financial impact.
Risk mitigation: Insurers use historical claims data, weather patterns, and catastrophe models to evaluate regional risks. Deductibles help insurers lower their financial risk in areas prone to hailstorms.

Oklahoma Insurance Commissioner Glen Mulready said the severity and frequency of storms are the reason for the increase in the use of hail deductibles.

“I think what's driving that is the frequency and severity of both wind and hail events. When a storm blows through here in Oklahoma, 80% of that damage is to roofs, and it's wind and hail,” he said.

These deductibles help keep premiums more affordable for homeowners, but increase costs when a claim is filed. Mulready added that many homeowners aren’t aware of the separate deductible and how it is calculated.

“I think it's [hail deductibles] an attempt to keep the premiums at a more affordable level. It's a cost-sharing attempt between the company that's taking on the risk and the homeowner,” he said. “I think the difficulty in that is just: does the average homeowner understand that they have a $2,500 deductible, but there is a separate wind and hail deductible? And it's not a percentage of the claim. It's a percentage of your home [replacement cost] value.”

How do hail deductibles work?

If you file a hail claim and have a hail deductible, you will be responsible for that amount, rather than for your standard deductible. You don't normally pay both for the same loss, but check your policy for the specific deductible that applies. Hail deductibles are typically a percentage of your dwelling coverage.

For example, let’s say a hailstorm damages your roof, causing $15,000 in damage. If you have $300,000 in homeowners insurance and a 2% hail deductible, your hail deductible would be $6,000. You will pay that amount for the repair, and your insurer will cover the remaining $9,000.

The amount your insurer pays also depends on whether your policy is for actual cash value (ACV) or replacement cost value (RCV). ACV accounts for depreciation, so if your roof is 8 years old, the ACV is lower than the cost to replace it. RCV doesn’t account for depreciation and pays the cost to replace the roof. Standard home insurance policies cover the structure at RCV, but some carriers may offer only ACV on an older roof.

Coverage and deductibles vary by state and insurer. Not every homeowner needs a separate hail deductible, and deductible requirements can vary significantly depending on whether you live in an area likely to experience frequent hailstorms.

People ask

Do I have to pay two deductibles after a storm?

No, in most cases you will pay one deductible. If hail is the primary cause of the damage, that is usually the deductible that applies. However, if there is damage from more than one storm, you will have to file two claims and pay the deductible for each.

Where are hail deductibles the most common?

Homeowners in parts of the Midwest and Tornado Alley, such as Colorado, Kansas, Nebraska, Oklahoma and Texas, can expect to see hail deductibles. Insurers apply these deductibles in hailstorm-prone areas to offset claims costs.

In our 2026 Insurance and Climate Change survey of 1,252 homeowners, 5% reported that their insurers had added a hail deductible; 6% of Texas homeowners reported an added hail deductible, compared with just 3% of Florida homeowners.

This suggests that homeowners in states with increasing climate change and hail risks are more likely to have a hail deductible added to their policies.

Some states are implementing programs to help homeowners avoid hail damage, reducing insurance claims. Oklahoma’s Strengthen Oklahoma Homes Program offers grants to help homeowners fortify their roof.

“And so what we've done is, 2 years ago, we got through the legislature our Strengthen Oklahoma Homes program, which we 100% modeled after Alabama,” Mulready said. “We're giving out $10,000 grants when folks are replacing their roofs to build that roof to the IBHS fortified standard. And so we've been doing that for about a year and a half now. We've got over 700 homes that have been fortified and certified by IBHS. Those homeowners are seeing a premium savings annually of over $700. So there's immediate premium savings.”

How do hail deductibles impact homeowners?

Hail deductibles reduce home insurance premiums but increase out-of-pocket costs when a hail claim is filed. A hail deductible is typically a percentage of the dwelling coverage amount and is often higher than the standard all-perils deductible, which can create a financial burden for homeowners in areas prone to hailstorms.

Several factors affect claims costs and hail deductible rates, including:

Geographic location and climate risk. Areas with a higher risk of hailstorms may see higher deductibles or premiums because the chance of damage is greater.
Age and construction of the home. Older homes, or those built with materials more susceptible to hail damage, may face different coverage requirements or higher insurance costs.
Roof material and condition. Impact-resistant roofing materials may qualify homeowners for insurance discounts, while an older or damaged roof could affect coverage options and costs.
Claims history. A history of multiple claims may affect premiums or eligibility for coverage, depending on the insurer and state regulations.

While a separate hail deductible can increase costs for homeowners who file a related claim, insurers can offer lower rates for standard coverage by separating higher-risk claims. This keeps premiums low, reducing costs if you don’t file a claim.

If repair costs are below your deductible, your policy will not pay anything toward the damage. Before deciding whether to file, consider the estimated repair cost, your deductible, and your insurer's claims requirements.

Will hail deductibles become more common in the future?

Hail deductibles may become more common in areas where insurers face frequent or costly storm claims, but local risks, insurer decisions, and state regulations will shape requirements. Better weather data and risk modeling may help insurers assess individual properties more precisely, while changing severe-weather patterns could affect future loss estimates.

Larger hailstones and changing geographic patterns related to climate change will also impact where and how often hail deductibles are applied. Places that didn’t face major hail risk in the past are seeing increasing risk.

As the climate changes, insurers use long-term hail storm projections to estimate potential impacts on coverage availability and deductibles. Homeowners can help avoid hail damage claims by making home improvements, such as using impact-resistant roofing materials.

What do homeowners need to know about hail deductibles?

Not all homeowners have a separate hail deductible; it depends on where you live and your insurer. You need to understand what your policy covers and whether it requires a hail deductible so you can prepare after a hailstorm. Review your policy and speak with an agent to completely understand whether you have a hail deductible and how it affects your coverage.

“I think that homeowners should be aware of what they have for coverage, what they have and what they don't have,” Mulready said. “That's best done on an annual review with their insurance agents. Being educated on their policy and utilizing an agent to review that on a regular basis is probably the best thing that we would recommend.”

Sources

State Farm. "State Farm Paid Over $5.6 Billion in Hail Claims in 2025." Accessed November 2026.
United Policyholders. “Homeowners: How to understand a wind/hail deductible.” Accessed November 2026.
Smithsonian Magazine. “Giant, Destructive Hail Is Becoming More Common With Climate Change, Study Says.” Accessed November 2026.

FAQ

Does homeowners insurance always include hail coverage?

No, homeowners insurance doesn’t always include hail coverage. Although standard homeowners insurance policies do cover hail in most cases, in some areas, insurers exclude coverage for hail damage, most commonly for named storms. You may need to add coverage and have a separate hailstorm deductible.

What’s the difference between a hail deductible and a wind deductible?

A hail deductible applies specifically to hail damage, while a wind deductible applies only to wind-related damage, such as shingles being blown off. However, most insurers bundle these coverages and deductibles rather than keeping them separate.

Will filing a hail damage claim increase my insurance premiums?

Hail damage claims may not cause an increase in insurance premiums because they are seen as claims that are outside of your control. Some states prohibit raising insurance rates for weather-related claims. However, when there are many hail claims in a particular area, rates may increase for the entire market, affecting all homeowners.

Is hail damage covered if it’s cosmetic?

Yes, hail damage is covered even if it’s cosmetic unless your policy has a cosmetic damage exclusion, in which case the policy will not cover damage that is solely cosmetic in nature. Read your policy’s exclusions carefully.

Can I switch insurance companies if my hail deductible is too high?

Yes, you can switch insurance companies to find a lower hail deductible. Your current hail deductible will be in effect for any current claims, since the new policy won't cover any existing hail damage.