The Atlantic hurricane season starts on June 1 and lasts through November 30.
Because of this, Florida homeowners have to prepare themselves for the potential damage that ensues during and after a hurricane.
A crucial part of hurricane insurance that causes policyholders confusion is their hurricane deductible.
This blog covers five things every Florida homeowner should know about hurricane insurance deductibles.
What is a hurricane insurance deductible?
A hurricane deductible is an out-of-pocket charge applied to the homeowner’s insurance claim for damage sustained from a hurricane.
These deductibles are commonly based on a percentage of the home’s value.
When a hurricane strikes, the homeowner pays the total deductible before insurance covers damages.
Another point of confusion is when hurricane deductibles take effect.
The Florida Association of Insurance Agents says the hurricane must first be named.
Then, a hurricane watch or warning has to be issued for any part of Florida.
When these two things happen, the hurricane insurance deductible is triggered.
5 things every Florida homeowner should know about hurricane insurance deductibles
- Hurricane deductibles aren’t part of standard deductibles.
As opposed to a standard deductible that’s applied to most types of damage, hurricane deductibles only apply to damage caused by named hurricanes. These deductibles are determined by a percentage of your home’s insured value.
- Hurricane insurance deductible timing.
Hurricane deductibles kick in when the National Hurricane Center issues a hurricane watch or warning for any part of Florida.
It ends 72 hours after the last hurricane watch or warning is terminated.
Your hurricane deductible applies if a storm’s downgraded to a tropical storm.
- Varying deductibles.
Florida hurricane deductibles range between 2% and 10% of a home’s insured value.
Homeowners can select a lower deductible, but it typically comes with higher premium costs.
However, if they choose a high-deductible plan, it can reduce the premium, which might lead to significant out-of-pocket costs for homeowners.
Look at your financial situation to find the right fit for you and your family.
- Hurricane deductibles are applied to a calendar year.
Hurricane deductibles go by the calendar year. This means you only have to meet your deductible one time per year.
If your home is damaged by more than one hurricane in a season and you’ve met your deductible, your standard deductible may apply to any other claims.
You’ll be responsible for the remaining balance if you don’t meet your deductible after the first hurricane.
This is good information for homeowners to know as they won’t be required to pay the high deductible for each hurricane.
- Pay attention to the details.
Every insurance policy is different, and that’s why we encourage you to do your due diligence and review the fine print.
Ask the insurer about limitations or exclusions and if the policy covers your needs.
Check out our blog post for tips on how to deal with insurance companies.
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