Wind Deductible Buy Back Coverage from Safehold Special Risk
In coastal and wind-prone regions, property owners and builders often face high windstorm deductibles that can create significant out-of-pocket exposure. Safehold Special Risk offers a specialized Wind Deductible Buy Back program to help agents and brokers provide their clients with a cost-effective solution to reduce this financial burden.
This program is designed for both commercial and residential properties under construction, with coverage available for general wind or named windstorms. Whether your client is a developer building a coastal apartment complex or a contractor managing a mid-rise hotel project inland, Safehold can help reduce their windstorm deductible exposure.
Ideal Accounts and Target Construction Types
This program is suitable for most construction types, with the exception of properties with Exterior Insulation Finishing Systems (EIFS). Eligible construction classifications include:
- Fire-resistive
- Joisted masonry
- Non-combustible (ISO Class 3) — 10+ miles from the coastline
- Masonry non-combustible
- Modified fire-resistive
- Frame (restrictions apply)
You might have a client developing a retail center in Georgia or a multi-family project in Texas—both facing high wind deductibles. This program can help you provide them with tailored protection that aligns with their project's location and risk profile.
Coverage Features and Options
Safehold’s Wind Deductible Buy Back coverage is flexible and can be customized based on your client’s needs:
- Available for both general wind and named windstorm coverage
- Can be written with or without an annual aggregate limit
- Policy term options:
- Commercial property: 12 months
- Builder’s risk: up to 36 months
Safehold works directly with Lloyd’s of London, giving agents access to deep underwriting expertise and capacity in this niche space.
Underwriting Requirements and Deductibles
Deductible thresholds vary based on the Total Insured Value (TIV):
- TIV < $2.5M: 1% deductible, minimum $10,000
- $2.5M–$5M: minimum $25,000
- $5M–$10M: minimum $50,000
- TIV > $10M: minimum $100,000
- Florida: Lesser of $100,000 or 1%, subject to $50,000 minimum
Coverage Limits
- Up to $1.25M maximum limit per occurrence (varies by state)
- Maximum TIV:
- $100M overall
- $50M in Florida
- $50M per location
- $250,000 per occurrence limit for inland states
Eligible Territories
Coverage is available in a wide range of coastal and inland states, including:
Coastal States: AL, CT, DE, FL (excluding Monroe County), GA, HI, LA, MA (excluding Nantucket and Duke Counties), MD, ME, MS, NC, NH, NJ, NY, PA, RI, SC, TX, VA
Inland States: AR, KS, IN, IA, MO, OH
Why Partner With Safehold Special Risk?
As a trusted program administrator, Safehold Special Risk specializes in unique and complex risks, providing agents with access to non-admitted markets and underwriting expertise. With direct access to Lloyd’s of London and a commitment to responsive service, Safehold is an excellent partner for agents looking to place hard-to-insure wind deductible exposures.
Due to the specific nature of this coverage, Safehold encourages agents to reach out for pre-submission discussions to determine eligibility and structure appropriate terms.
Frequently Asked Questions
What types of accounts are a good fit for this program?
Ideal accounts include commercial and residential properties under construction in wind-prone areas, especially those with high windstorm deductibles. Examples include builders’ risk for apartment complexes, hotels, or retail centers.
Can this program be used for both named storms and general wind events?
Yes, coverage can be structured for either named windstorms only or general wind events, depending on the insured’s needs.
What construction types are eligible?
Most construction types are eligible, including fire-resistive, joisted masonry, non-combustible structures (10+ miles from the coast), masonry non-combustible, and modified fire-resistive. Frame construction may be eligible with restrictions. EIFS is excluded.
Is there a maximum Total Insured Value (TIV) this program can support?
Yes. The maximum TIV is $100 million nationwide and $50 million in Florida. The per-location limit is $50 million.
Is the Wind Deductible Buy Back program admitted?
No, this coverage is written on a non-admitted basis through Lloyd’s of London.
Need help placing an account? Connect with a market specialist.