Under the W/H policy, when is hail paid out?

In the context of a W/H (Wind/Hail) insurance policy, the correct answer indicates that hail damage claims are paid out when the severity reaches 65%. This means that the insurance policy stipulates a specific threshold of damage severity that must be met before a payout for hail-related damages is triggered. This threshold acts as a risk management tool, ensuring that insurance becomes viable for both the insurer and the insured by limiting payouts to significant damage events.

Understanding this aspect of the policy is crucial, as it emphasizes the importance of the severity percentage in the claims process. It helps policyholders to have a clear expectation regarding when they can claim damages due to hail, reflecting the policy's stipulations and financial risk considerations inherent in such insurance products.

Other options do not align with the specifics of W/H policies regarding hail damage, as they either specify different severity thresholds or suggest that payouts are not available for hail damage, which is inaccurate given the conditions outlined in many such policies.