Hurricane Deductible: How It All Works

In recent years, hurricanes have caused widespread damage throughout many parts of the United States. These storms can cause significant destruction to property, and many homeowners may find themselves dealing with the aftermath, including the cost of repairs. That's where hurricane insurance comes in, but it's important to understand how it works. One aspect of hurricane insurance that can be confusing for homeowners is the concept of a hurricane deductible. In this blog post, we will explain what a hurricane deductible is, how it works, and what you need to know about it.

1. What is a Hurricane Deductible?

A hurricane deductible is a separate deductible that is applied to homeowners' insurance policies specifically for damages caused by a hurricane or a named storm. Unlike a standard deductible, which is a fixed amount that the homeowner pays before the insurance policy kicks in, a hurricane deductible is usually a percentage of the insured value of the property. Depending on the policy, the percentage can be anywhere from 1% to 10%, or higher in some cases.

2. How Does It Work?

Assuming the homeowner has a policy with a hurricane deductible of 3%, and the insured value of the home is $500,000, the deductible would be $15,000. If the homeowner suffers damage from a hurricane or named storm and the repair costs are less than $15,000, then the homeowner bears the cost of the repairs. However, if the repair costs exceed $15,000, the homeowner is responsible for paying the $15,000 deductible, and the insurance company covers the remaining costs up to the limit of the policy.

3. When Does It Apply?

The hurricane deductible is applied only when a hurricane or named storm event is declared by the National Hurricane Center. The event must meet certain criteria, and the storm must have sustained winds of a certain speed or higher. It's important to note that not all policies have a hurricane deductible, and the rules can vary by state, coverage level, and insurance carrier. It's important to read the policy carefully and ask your insurance carrier about the details of the hurricane deductible.

4. What You Need to Know About Hurricane Deductibles

One of the most important things to know about hurricane deductibles is that they are separate from other deductibles on your policy. For most homeowners, the standard deductible will apply to all other covered events, such as fire, theft, or water damage. A hurricane deductible, on the other hand, only applies to hurricanes or named storms. It's also important to keep in mind that the hurricane deductible is based on the insured value of the property, not the damage caused by the storm. So, even if the damage is less than the deductible, the homeowner is still responsible for paying the deductible amount.

Conclusion

In conclusion, hurricane deductibles are an important aspect of hurricane insurance policies. It's important to understand how they work, when they apply, and what you need to know about them. Homeowners should read their policies carefully, ask their insurance carriers questions, and be prepared for the possibility of a hurricane or named storm event. If you're looking for a loss adjuster in Orlando, FL, and have suffered damage from a hurricane, contact Ultra Property Damage today for a free consultation with a loss adjuster. We'll help you understand your policy, navigate the claims process, and get your life back to normal.