Hotels and resorts are frequently sited exactly where wind risk is highest — on the coast, near the water. That location drives both revenue and a large percentage hurricane or named-storm deductible, making hospitality one of the most wind-exposed commercial classes.
Why hospitality owners buy it down
A named-storm deductible on a coastal hotel can represent an enormous retention, and a single active season can bring more than one triggering event. Beyond the direct property retention, a storm often coincides with lost occupancy, so preserving cash after an event matters. A buy-down reduces the retained wind deductible to a chosen attachment point, on a follow-form difference-in-conditions basis linked to the overlying property policy. Coverage is subject to appetite and governed solely by the terms of the issued policy.