"Hurricane deductibles" refers to a specific type of deductible that insurance companies apply when a claim is related to damage caused by a hurricane. It means that policyholders are responsible for paying a higher portion of the repair or replacement costs before their insurance coverage kicks in.
Full definition
Moraga says you should be aware
of hurricane deductibles, if you plan to buy your first home in an area frequently hit by high winds.
FEMA & Governor Cuomo fact sheets uploaded to County Website Governor Andrew M. Cuomo announced that New York homeowners will not have to pay potentially large
hurricane deductibles on insurance claims stemming from damage caused by Hurricane Sandy.
«Homeowners should not have to
pay hurricane deductibles for damage caused by the storm and insurers should understand the Department of Financial Services will be monitoring how claims are handled,» Governor Cuomo said in a release.
Lawsky, whose consolidated department covers the state's insurance industry, said companies shouldn't charge home and property
owners hurricane deductibles since the New York version of Irene had been downgraded to a tropical storm.
«Homeowners are suffering terribly from this storm and we will continue to ensure that insurers do not abuse those they insure by not paying flood insurance or by forcing homeowners to pay
big hurricane deductibles that just don't apply.
If states declare #Sandy not 2b a «hurricane»
so hurricane deductibles don't apply, expect 2c policy forms rewritten 4 future storms $ $ Nov 01, 2012
For a Florida masonry home, located in Brevard County, built after 2005, with a current replacement value of $ 300,000, a $ 500 non-hurricane deductible, a 2
percent hurricane deductible, no claims in the past 3 years, minimum premium discounts for limited wind mitigation features and no hip roof, yearly insurance premiums range from $ 1,366 to $ 3,027, depending on insurer.
The one major exception to this is in Florida,
where hurricane deductibles specifically are applied per season rather than for each storm.
State Farm's
hurricane deductibles spur request from state's Insurance Commissioner State Farm has announced that it has begun reviewing a request from Louisiana Insurance Commissioner Jim Donleon regarding homeowners insurance.
Almost always, if there is home damage specifically caused by a hurricane and not just a wind or rainstorm, there is a
specific hurricane deductible written into the policy.
In New Jersey,
hurricane deductibles approved by the Department of Banking and Insurance apply to losses from a storm that is at any time designated a hurricane by the weather service.
This makes a big difference for homeowners because it means that
special hurricane deductibles will not kick in, saving them thousands of dollars.»
Dwellings located within 2,600 feet of the shoreline will have two deductibles — one deductible for named perils and a
separate hurricane deductible of 5 percent.
About a quarter — 23 percent — of the suits against Citizens challenged the company's determination that it owed the policyholder no money because the value of the loss did not reach
the hurricane deductible.
The New York State Department of Financial Services has informed the insurance industry that
hurricane deductibles should not be triggered for this storm.
Often times, your policy will also have
a hurricane deductible (more below).
The hurricane deductible, in FL, is 2 % of home value, That is how I arrived at that figure.
If your homeowners insurance policy covers wind damage or other damages from hurricanes, claims may be subject to a separate deductible, often called
a hurricane deductible or named - storm deductible.
Named - storm and
hurricane deductibles are higher than a standard homeowners insurance deductible and are often set as a percentage of your dwelling coverage.
Florida, for example, restricts the use of
a hurricane deductible to an annual basis.
There are currently 20 states that have
hurricane deductibles, so you'll want to check your homeowners insurance policy if you live in one of them to determine what you might pay in the event of a hurricane:
There's
no hurricane deductible for renters insurance policies.
A hurricane deductible is applied only to hurricanes, whereas a windstorm deductible applies to any type of wind.
The hurricane deductible is based on a percentage you choose.
If you live in an area at high risk for hurricanes,
your hurricane deductible may be a higher percentage.
If your policy has
a hurricane deductible, it will clearly state the specific «trigger» that would cause the deductible to go into effect.
What this means is that if your home's insured value is $ 250,000 and
your hurricane deductible is 3 percent, the amount you'll end up paying out of pocket for an insurance claim is $ 7500.
Note that you may be required to have separate
hurricane deductibles and other special policy provisions in areas that are prone to hurricanes.
«Policyholders need to determine how their state's
hurricane deductibles — which are a percentage of the home's value instead of a [set] dollar amount (they vary by state)-- will impact their ability to handle the total amount they would have to pay out of their own pocket in the event of a loss.»
Commissioner Donelon notes that
hurricane deductibles have become common in coastal states, where hurricanes are somewhat frequent.
Insurers can apply
a hurricane deductible only in a true hurricane; a «trigger» in your homeowners policy dictates when it kicks in.
If your policy has
a hurricane deductible, it will clearly state the specific «trigger» that would cause the deductible to go into effect.
Because the National Weather Service did not issue warnings to many counties, the Maryland Insurance Administration declared that
no hurricane deductibles would apply when claims were filed.
If you live in an area at high risk for hurricanes,
your hurricane deductible may be a higher percentage.
A hurricane deductible is applied only to hurricanes, whereas a windstorm deductible applies to any type of wind.
The declarations page of your insurance policy details the exact dollar amount of
your hurricane deductible.
Additionally,
hurricane deductibles are applied differently since storms can cause damage multiple times in one year.
In some states, like Rhode Island, you'll have
a Hurricane Deductible as a part of your standard renters insurance policy.
By adding
a hurricane deductible to your Tampa insurance policy, you can rest assured knowing you can repair or rebuild your home in the event it is destroyed from a hurricane.
If your policy does offer coverage for wind damage, you may find that it includes a separate
hurricane deductible that is higher than your standard deductible, according to the Insurance Information Institute (III).
Your hurricane deductible can range from two to 10 percent of the insured value of your home.