Self-insuring the wind deductible means deliberately keeping the high retention and funding it yourself — through cash reserves, a line of credit, or a captive — rather than transferring any of it. A buy-down transfers part of that exposure to an insurer for a premium.
Retain or transfer
Self-insuring costs nothing in premium and keeps capital in your control, which can suit owners with strong liquidity and a diversified portfolio where a single loss is manageable. The risk is concentration and timing: a major storm can force a large, immediate outlay exactly when other costs spike, and reserves earmarked for a deductible are capital not deployed elsewhere. A buy-down converts that contingent liability into a fixed premium and caps the retained amount. The decision comes down to your balance sheet’s capacity to absorb a full percentage deductible without disruption. See the calculator to size the retention you would be self-funding.