The hurricane deductible is one of the most misunderstood parts of homeowners insurance in Florida.
Most people think of a deductible as a fixed number, like $1,000. The hurricane deductible is different because it’s a percentage of the amount for which your home is insured–if your home is insured for $250,000 with a 2% hurricane deductible, your deductible amount is $5,000.
The hurricane deductible only kicks in when the National Weather Service officially declares a hurricane, and it applies to damage from the start of the warning through 72 hours after the hurricane ends.
Hurricane deductibles are generally applied only once per calendar year, regardless of how many storms strike. However, if a policyholder has windstorm damage resulting from the first hurricane of the policy term, and then moves the policy to a different insurance company that is not a part of the original insurance company’s group, the hurricane deductible applies in full to the second claim without any credit given for the first hurricane deductible that occurred the same year. With Citizens aggressively depopulating, it’s crucial to understand how this may affect your policy.
This Hurricane Deductible Guide from the Division of Consumer Services goes into detail about the hurricane deductible including different scenarios that may affect an insurance claim.
Take a minute to read over the guide and go over any questions you have with your local insurance agent who is your best source of information about your coverage.
Hurricane season begins June 1, and now is the time to be sure your insurance is in place.