Residents of Florida have the unique concern of owning a home in a region that has a high hurricane risk each year. Each homeowner’s insurance policy has all the details of the deductible owed for hurricane related damages. It’s important to understand your hurricane deductible going into storm season.
- Hurricane Deductibles Cost More Than Your Standard Deductible
- When Can Insurance Classify Your Claim as Hurricane Related Damages
- What is a Hurricane Deductible?
- What is a Named Storm Deductible?
- Cost of Hurricane Deductible And Storm Deductible
- Example
- Hurricane Deductible Loophole
- Understand Your Policy And Get Expert Help
Hurricane Deductibles Cost More Than Your Standard Deductible
Most insurance policies address the hurricane deductible as a percentage of your homes insured value compared to a standard deductible. This is typically a higher dollar amount and significantly impacts the financial burden you bear when your home is damaged during a hurricane vs. damaged at another point in time. Your insurance company will process your claim using the hurricane deductible if they can classify the cause of loss as hurricane related damages.
When Can Insurance Classify Your Claim as Hurricane Related Damages?
On your insurance claim, the cause of loss is classified as hurricane related damages if home damage is claimed within 24-72 hours prior to the storm making landfall or if damage is claimed following a hurricane.
What is a Hurricane Deductible?
A hurricane deductible applies to home damages caused by a hurricane classified by the National Weather Bureau. They can only be applied when a storm makes landfall as a named hurricane. If it makes landfall as a tropical storm, damage may be subject to the lower ‘all other perils’ deductibles spelled out in your policy.
What is a Named Storm Deductible?
A named storm deductible is applied to any damage that is a result of a named storm by the National Weather Bureau. This is a very important distinction because often news stations and weather channels name storms that are not named by the National Weather Bureau.
Cost of Hurricane Deductible And Storm Deductible
When discussing deductibles, it’s important to review each policy. Most hurricane or named storm deductibles are roughly 2%-5% of the insured property value that is listed on the policy. Sometimes the hurricane or named storm deductibles are up to 10% of the property value because there is no cap set by the state to regulate insurers.
Example
A standard deductible is between $500-$2,500, respectively. If damage occurs, you are responsible for the flat rate. However, a hurricane deductible set as a percentage of your home’s value is more costly. If your home is insured for $500,000, at a 2% deductible the amount due by you is $10,000. That is $10,000 the insurance company is not responsible to pay on the claim. This is more than impactful to many people.
Hurricane Deductible Loophole
It’s important to note a storm does not have to be a hurricane to have the hurricane deductible apply. Your policy can have language that implies once a storm is named it can fall within the hurricane deductible.
Understand Your Policy And Get Expert Help
It’s important to know the ins and outs of your insurance policy and every policy is unique. As licensed Public Adjusters in the state of Florida we are here to assist every homeowner with their loss. If you have a claim, concerns you may need to file a claim or just overall questions regarding your claim feel free to reach out and we would be happy to review and assist.
People that use a public adjuster like Fair Claim Experts save time, save money, have a better understanding of their claim actions, remove stress, and gain peace of mind. Let us help you get your property back to the condition it was in before damages occurred. We serve clients from all areas across the state of Florida: Tampa, St. Petersburg, Orlando, Miami, Miami Beach, West Palm Beach, Ft. Lauderdale, Jacksonville, Tallahassee, Gainesville, The Villages. Click here to begin your free consultation.
