What is YOUR Hurricane Deductible?

The model above puts Provincetown, MA in the eye of Hurricane Henri by Monday, August 23rd. This is more than 48 hours out so it does have some uncertainty. If you've ever wondered if you're covered for damages caused by a hurricane, today would be a good day to review your home insurance policy.

So, what is a hurricane deductible? The hurricane deductible applies only once during a hurricane season. All insurers must offer a hurricane deductible of?$500, $1000, $2500, $5000, 2 percent, or as high as 5 percent of the policy dwelling or structure limits. The percentages are based on the total value of the home.

When do hurricane deductibles apply?

Timing is also a factor in triggering hurricane deductibles. For example, the hurricane deductible may apply if the damage occurs:?Within 24 hours before the storm is named or a hurricane makes landfall. Up to 72 hours after the hurricane is downgraded to a lesser storm or a hurricane watch is cancelled.

Hurricane deductibles are what you pay for home repairs after hurricane damage and are usually higher (much higher) than a regular home insurance deductible. For example:

???If you have a house fire, you would pay the amount of your regular deductible toward repairs—let’s say, $1,000. (Check your policy’s declarations page for your deductible amount.)

???In some states you could have a much higher hurricane deductible—say, 10% of your dwelling coverage, which would be $30,000 on a house that’s insured for $300,000.

Insurance companies can use hurricane deductibles that are either a set amount or a percentage varying from 1% to 5% of the home’s insured value. In some cases, such as states with higher wind risk, these percentages are upwards of 10%.

In Florida, for example, a home insurance company must offer hurricane deductible choices of $500, 2%, 5% or 10%. The $500 choice doesn’t have to be offered if the house is insured for more than $100,000.

Percentage-based deductibles, like 5%, are calculated based on the coverage amount you have for your dwelling, meaning house structure.

Hurricane deductibles can apply to wind and rain damage that are a direct result of a hurricane. For example, if rain comes in through a hole in the roof caused by a hurricane, the roof and water damage could be subject to a hurricane deductible.

Check your policy and if you have any questions regarding coverages, contact your friendly neighborhood insurance agent today.

(Some info here provided by Forbes.com)