Hurricane Deductibles: What Are They and How Do They Work?

Hurricane Deductibles: What Are They and How Do They Work?

The warm summer months mark the beginning of hurricane season across the United States. Officially, the Atlantic Hurricane season begins on June 1st and lasts until November 30th and the Eastern Pacific Hurricane Season starts on May 15th and will last until November 30th as well. These long windows of time mean that many homes and other valuable properties across the country will be vulnerable to the damaging winds and rains accompanied by major storms. While most home insurance and historic insurance policies will work to protect a property from regular storm damage when it comes to hurricane season, the claims process works a bit differently and you could be required to pay a hurricane deductible which would be deducted from the claim payment. Keep reading to learn more about these important differences and make sure you’ve invested in the right level of insurance protection before hurricane season is in full swing.

What is a Hurricane Deductible?

Hurricane deductibles may also be referred to as named storm deductibles and differ from regular insurance deductibles because they are only triggered by a named tropical storm. For example, if a home or historic property is damaged during the time frame that a named tropical storm hits your city, your insurance provider may require that you pay a hurricane deductible when submitting an insurance claim.

Hurricane deductibles can vary greatly based on your insurance provider and location. However, they are most often triggered within a certain time frame, typically anywhere from 24 hours before a storm is named by the National Weather Service up until 48 hours after it is downgraded to a tropical storm. Other situations where a hurricane deductible may be triggered can include any time that a hurricane watch is declared or whenever a storm makes landfall. Because these triggers can vary from provider to provider, it’s always important for property owners in storm areas to research the rules defined by state regulations and your insurance policy.

How Much Do Hurricane Deductibles Cost?

Under most circumstances, hurricane deductibles will be higher than the primary deductibles outlined under your insurance policy. In most cases, these deductibles are based off a percentage rather than the normal fixed dollar amount that most policyholders are familiar with. On average, hurricane deductibles range from 1 to 5 percent of your total insured policy amount. But for those who live in more high-risk areas, storm deductibles can jump up to 10 percent of that amount.

With the help of historic insurance, property owners can rest easy knowing they can rely on the funds they need to make costly repairs to their historical commercial property after a hurricane or other named storm.