For Florida homeowners, understanding homeowners insurance is more than just a good idea—it’s essential.
Many homeowners may not realize that in addition to a standard deductible, they could also have a hurricane deductible that specifically applies to damage caused by named storms like hurricanes and tropical storms.
This separate deductible can mean a different out-of-pocket cost after a storm, which might catch some homeowners by surprise.
With Florida’s high risk of severe weather, it’s important to know how hurricane deductibles work and why they’re included in many policies. Fortunately, agencies like the National Weather Service track and forecast these storms, giving residents valuable time to prepare.
Knowing the details of your policy can help you plan financially and face hurricane season with confidence.
What Is a Hurricane Deductible?
Your hurricane deductible is part of your standard home insurance policy, designed specifically to apply when there is a hurricane.
Your homeowners insurance policy includes at least two deductibles: your hurricane deductible (which applies to hurricane-related claims) and an All Other Perils (AOP) deductible, for anything else your policy covers. The hurricane deductible is calculated differently than the AOP deductible and is often a percentage of your home’s insured value.
Also remember, your standard homeowners policy probably won’t cover flood-related damage. For storm surge, ground seepage, and other types of damage, you’ll need a separate flood insurance policy.
Knowing the difference between the AOP deductible and hurricane deductible helps ensure you’re financially prepared and fully covered.
How Many Deductibles Do I Have?
As a Florida homeowner, your insurance policy may come with more than one deductible, each designed to apply in different situations.
In addition to the standard All Other Perils (AOP) deductible, many policies include a separate hurricane deductible, a windstorm/hail deductible, or others. This setup helps insurance providers manage the higher costs associated with hurricane damage while ensuring homeowners have access to comprehensive hurricane coverage.
Understanding these deductible distinctions is essential when planning for hurricane season. Knowing which deductible applies in various situations helps you anticipate potential costs and avoid surprises if you need to file a hurricane claim.
How Much Is My Hurricane Deductible?
Hurricane deductibles are calculated as either a flat dollar amount or a percentage of your home’s insured value.
In Florida, most hurricane deductibles are percentage-based, meaning you’ll pay a set percentage of your home’s insured value out of pocket before your insurance covers the remaining wind damage (typically 2, 5, or 10%).
For example, a 2% hurricane deductible on a home insured for $300,000 would mean paying $6,000 out of pocket for hurricane-related damage.
This choice between a flat dollar amount and a percentage-based deductible can also impact your premium costs. Policies with a higher deductible generally come with lower premiums, while lower deductibles usually result in higher premiums.
Deciding on a deductible amount that fits your budget and risk tolerance can help you plan ahead for hurricane season. Your choices will also depend upon what your carrier offers.
When Does a Hurricane Deductible Apply?
A hurricane deductible applies only under specific conditions, typically set by both your insurance provider and the National Hurricane Center.
In most cases, the deductible is triggered when a named hurricane threatens the state. This means that if your home sustains any kind of damage during that time, your hurricane deductible may apply.
The time period for a hurricane in Florida is as follows:
- Beginning when a hurricane warning is issued for any part of Florida by the National Hurricane Center of the National Weather Service.
- Ending 72 hours after the last hurricane watch or warning is terminated for any part of Florida by the National Hurricane Center of the National Weather Service.
This rule ensures a clear window in which the hurricane deductible applies, helping homeowners know exactly when to expect their hurricane deductible to kick in.
Another important thing to note is your hurricane deductible is an annual, calendar-year deductible. This means if the damage from the first storm is less than your deductible amount, it may be credited towards the damage from a subsequent storm within the same calendar year.
How To Prepare For Hurricanes
As hurricane season approaches, many Florida homeowners stock up on essentials like sandbags, bottled water, and flashlights to prepare for the storm. But preparing for a hurricane also means being financially ready for the potential costs involved.
Unlike typical home repairs, hurricane deductibles are often calculated as a percentage of your home’s insured value, which can translate into a significant out-of-pocket expense. Setting aside funds in advance to cover this deductible can make an enormous difference in your ability to recover quickly after a storm.
While sandbags and storm kits are essential, financial readiness is just as critical. By planning for your deductible and ensuring you have the right coverage in place, you’ll be better prepared to face hurricane season with peace of mind.
Conclusion
Hurricane season can bring uncertainty, but understanding your insurance—especially your hurricane deductible—helps bring peace of mind.
At Darr Schackow Insurance, we’re here not only to help you find the right coverage but also to ensure you fully understand your policy. Our team is committed to guiding you through each detail, so you’re prepared for whatever the season brings.
Reach out to us today to review your hurricane coverage and make sure you have the protection and knowledge you need.