How should deductibles be optimized in high‑risk areas given FAIR plans and reinsurance pass‑throughs?

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How should deductibles be optimized in high‑risk areas given FAIR plans and reinsurance pass‑throughs?

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In risky areas, upping your deductible can lower your premiums. Just be sure you can handle that out-of-pocket cost. With FAIR plans and rising reinsurance, think about saving cash now versus a big claim wiping you out later. Sometimes, a mid-range deductible is the best bet.

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In high-risk areas, set deductibles high enough to keep FAIR plan premiums manageable amid reinsurance pass-throughs, but low enough for claims to remain practical. Tailor amounts to property value, hazard frequency, and owner liquidity, using separate storm or wind deductibles when needed.