REITs, funds, and large owners hold property across many locations, and wind exposure is rarely uniform across a schedule. Percentage deductibles may apply per occurrence, per location, or per building, and a minimum-per-occurrence floor set by the overlying carrier can override the stated percentage — making the true retained exposure across a portfolio complex to size.
Why portfolio owners buy it down
Sophisticated owners evaluate wind deductible buy-down as a capital-management tool, weighing the line transferred against the premium using the payback period — the number of years of premium that would equal the exposure. That lets an asset manager decide, property by property, which locations to buy down within a budget. A buy-down can be structured to the schedule’s per-location or per-building deductibles, following form to the overlying coverage. Terms are subject to appetite and governed solely by the terms of the issued policy.
See the glossary for the structuring terms — line, attachment, payback period, minimum per occurrence — and the calculator to size a single location.