Cat-focused MGA Vertus and its carrier partner Zurich North America have expanded their deductible buyback program from Florida and Texas to South Carolina, North Carolina and Virginia, as the joint most active hurricane season on record enters its final few weeks.
The Cat4Home product fully reimburses hurricane and named storm deductibles on personal homeowners policies in the event of a storm-related claim.
It is available for homes valued at up to $5mn, with deductibles ranging from $1,000 to $100,000, and can be bought to cover only hurricanes or all named storms.
Commenting on the expansion, Zurich North America’s head of programs Greg Masset said: “After experiencing a hurricane, the last thing homeowners need to worry about is how they will come up with enough money to cover their hurricane or named-storm deductible.”
He added that with homeowners in coastal, storm-prone states facing higher deductibles from their insurers and a greater probability of storm activity, the expanded, alternative solution from Vertus and Zurich would allow them to better recover after a disaster.
Hurricane deductibles are typically set at 2 percent of the home value as standard but can be significantly higher, with policyholders required to pay their deductibles out of pocket before their homeowners insurance pays out.
“Cat4Home covers the cost of this deductible, addressing this real-world challenge in a creative and cost-effective way,” said Vertus president Joe Braunstein.
Jacksonville, Florida-based Vertus Insurance Partners is backed by Innovisk Capital Partners and is also a Lloyd’s coverholder.
InsurTech platform Innovisk was set up in 2018 with backing from Willis Towers Watson to support the launch of MGA partners by entrepreneurial underwriting talent.