Hurricane Deductible

What Does Hurricane Deductible Mean?

A hurricane deductible is the amount a home insurance policyholder is responsible for paying out of pocket in the event of a hurricane. This amount must be covered by the policyholder before the insurance company will pay for any losses. Multiple deductibles may be attached to a policy, and they can either be fixed or based on a percentage of the insured amount. Because hurricane deductibles can apply on top of a standard deductible and are triggered by named storms in coastal states, homeowners should check their policy declarations page before storm season to confirm how their insurer handles hurricane damage coverage.

Insuranceopedia Explains Hurricane Deductible

A hurricane deductible is typically calculated as a percentage of a home’s insured value, usually ranging from 1% to 5%. Homeowners who install hurricane-resistant glass panels for doors and windows may qualify for a reduced premium on their homeowners’ insurance policy. However, policyholders should be aware that even if a house is covered for hurricanes, the policy may not include coverage for flooding. Deductible structure varies between insurers, so comparing quotes from the best homeowners insurance companies can show whether a flat-dollar or percentage-based hurricane deductible better fits a particular home’s value.