Wind and Hail Deductibles in Arkansas: How a Roof Claim Is Calculated

A hailstorm moves through Little Rock, you call to open a claim, and the adjuster tells you your deductible is $6,400. You were expecting $1,000, because that is the number printed on the front of your policy. Both numbers can be correct. Some Arkansas home policies use a separate wind and hail deductible, sometimes written as a percentage instead of a flat dollar amount. If you own a home in central Arkansas, read that line on your declarations page before a storm rather than after one.

Lotus Assurance is an independent agency in Little Rock. We read a lot of declarations pages, and this is the part clients are most often surprised by, usually at the worst possible moment. Below is how the wind and hail deductible actually works, the second number that catches people on an older roof, and how to find both on your own policy.

Your wind and hail deductible may be a percentage

Some homeowners policies written in Arkansas list a general deductible and a separate wind or hail deductible. The wording and amounts vary by company and policy.

The first is often called the all other perils deductible and may be a flat amount such as $500, $1,000, or $2,500. It can apply to covered losses such as fire, theft, or some kinds of water damage, subject to the policy terms.

The second applies to the wind or hail losses defined in the policy. A percentage deductible is commonly calculated from the Coverage A dwelling limit, not from the size of the claim or the home's market value. Read the deductible endorsement because the calculation can differ.

For example, if your Coverage A limit is $320,000 and the applicable wind and hail deductible is 2 percent of Coverage A, the deductible is $6,400. On a covered $19,000 roof loss, the amount available after that deductible could be $12,600 before depreciation, limits, and other policy terms are applied.

Smaller storm damage may fall below the deductible. Bent gutters, torn shingles, and dented siding might total $5,000 in covered repairs. In that example, the deductible would absorb the loss. Document the damage and follow the policy's notice deadlines even when you are unsure whether the repair cost will exceed the deductible.

The second number: how your policy pays for an older roof

Deductible aside, policies settle roof damage one of two ways.

Replacement cost coverage generally pays the covered cost to repair or replace with materials of like kind and quality, subject to the deductible and policy conditions. Actual cash value subtracts depreciation for age and wear.

Some Arkansas policies attach a roof payment schedule, change older roof surfaces to actual cash value, or pay a declining percentage as the roof ages. Endorsement names vary by carrier. You may see "Roof Surfaces Extended Coverage," a loss settlement endorsement for wind and hail damage to roof surfacing, or a table of ages and percentages in the forms attached to the policy.

Consider the same storm under a hypothetical schedule. If an 18-year-old architectural shingle roof is eligible for 40 percent of a $19,000 covered replacement cost, the starting amount is $7,600. After a $6,400 deductible, $1,200 would remain before any other applicable terms.

That result can feel as though the policy did not pay for the roof. The declarations page, deductible endorsement, and roof loss settlement form explain how the numbers are supposed to work together.

Why Arkansas policies are built this way

Central Arkansas sees frequent severe thunderstorms, and NOAA climatology for this region shows hail activity rising sharply in spring and early summer. That repeated exposure is one reason wind, hail, and roof terms deserve close attention here.

Insurers price and limit storm risk in different ways. Percentage deductibles, roof payment schedules, and tighter underwriting for older roofs can move more of the repair cost to the homeowner.

The policy you bought in 2015 may not work like the one offered at renewal this spring. Deductibles and roof endorsements can change at renewal with the notices required by the policy and Arkansas law. Read the renewal packet and ask about any form or deductible you do not recognize.

How to read your own declarations page

Pull out your policy and take five minutes with it. You are looking for six things.

1. Coverage A, your dwelling limit. A percentage wind or hail deductible often uses this number, but check the endorsement for the exact calculation.
2. The deductible section. Expect two entries, one for all other perils and one for windstorm or hail.
3. The multiplication. If it says 2 percent, work out the dollar figure and write it in the margin. That is your real storm deductible.
4. Any roof endorsement. Check the forms list for anything mentioning roof surfacing, roof surfaces, or actual cash value loss settlement.
5. Your roof's age and material, checked against that schedule if one exists.
6. Ordinance or law coverage. Check whether the policy includes this coverage and what limit applies if repairs must meet current building codes.

If any of those are missing or unclear, that is a question for your agent, not a reason to assume the best.

What you can do about it

Ask whether another wind and hail deductible is available and what it would cost. A lower deductible may raise the premium while reducing the amount you pay toward a covered storm loss. That trade is worth pricing out, which is not the same as saying it is worth buying.

Know your roof's age and keep the paperwork. Install date, material, permits, and a few photos from before the storm. An adjuster works from documentation, and yours is better than nothing on file.

Ask about impact-resistant shingles. Some carriers offer a credit for Class 4 rated shingles, which matters most when you are already paying for a roof and choosing materials anyway.

Handle small losses carefully. Document the damage, follow notice deadlines, and ask how the insurer handles an inquiry or claim when the estimate is near the deductible. The Arkansas Insurance Department advises homeowners to compare the damage with the deductible and contact the insurer or agent for claim instructions.

Read the renewal. A roof schedule or percentage deductible may appear there, and it is easy to miss among the other forms.

Frequently asked questions

For more consumer guidance, read the Arkansas Insurance Department's post-storm tips and the NAIC guide to roof replacement cost and actual cash value.

If you are not sure which of these apply to you, send us your declarations page and we will read it with you. It takes a few minutes, and it is a much easier conversation now than three days after a storm. Call (501) 476-4445, request a free quote, or start with our home insurance page. Our guide to insurance in Little Rock covers the rest of what a policy here should do.