Commercial owners have several ways to handle a high wind deductible. This hub breaks down how a buy-down compares to each alternative so you can see the tradeoffs at a glance. The recurring themes: how much out-of-pocket exposure remains, how predictable the cost is, and how fast money reaches you after a storm.
The main options
The most direct comparison is buying down versus simply keeping the high deductible and self-funding the risk. Beyond that, a difference-in-conditions (DIC) policy can address broader gaps including deductible exposure; a parametric product pays a fixed amount when a storm hits defined triggers regardless of actual loss; and formal self-insuring means deliberately retaining the deductible and funding it yourself. Each fits a different owner and risk profile.