Learning what is the Hurricane Insurance Deductible

If you live located in an area with the highest risk of hurricane it is important to look over your homeowner’s insurance plan for specifics on its deductible in case of damages caused by hurricanes. This relatively new feature in insurance policies isn’t the form of a fixed dollar amount, but rather a proportion of the value of your home that can contribute substantially to the cost of repairs in the event of damage to your home during a storm.

When the Hurricane Deductible applies

A hurricane deductible only applies to damages caused by storms classified as hurricanes , according to the National Weather Service or U.S. National Hurricane Center. The term “windstorm deductible” applies to all other wind-related damages. Each insurance company decides on its own “trigger”–the occasion that triggers the windstorm or hurricane deductible.

Katrina Fallout

When Hurricane Andrew struck Southern Florida in 1992 the storm caused 25 billion dollars in damages. Then the hurricane Katrina struck in 2005, and caused more than $41 billion in claims. Following these catastrophes Reinsurers, which are the firms who provide the back-up of homeowners insurance to the principal insurance companies, demanded that insurance companies come up with a solution to reduce the cost of claims.

The companies came up with a novel method for calculating the amount homeowners must be responsible for storm-related damages before the insurance reimbursement begins. The result was a rise in the sum a homeowner has to pay, and reduced the financial responsibility of the insurer and reinsurer. obligation.

How the Deductible Functions

A typical homeowner insurance policy offers insurance against financial loss through insurance for the house as well as its belongings. Insurance deductibles are the sum you are required to pay for the loss prior to when your insurance company begins paying. The details are laid out within the insurance policy.

Policies for homeowners who own homes located in areas that are most likely to be impacted by a hurricane could include windstorm and hurricane insurance deductibles, which are additional requirements above the normal deductible.

When your property is in danger It is crucial to ensure that you have sufficient insurance to safeguard you in the case of severe storm. The standard homeowners’ insurance will not provide coverage for all damages caused by hurricanes however hurricane insurance does provide this coverage and typically provide the same coverage as the homeowners’ insurance.

If the Deductible is applicable

If you’re required to pay the windstorm or hurricane deductible will depend on your insurer’s interpretation of trigger event. The deductible only applies in specific circumstances that are defined in the insurance contract.

The triggers for hurricane insurance differ between states, as well as between insurers. This is why it’s crucial to go over the details of hurricane insurance in the homeowner’s insurance policy. Be sure to keep copies of all the necessary documents in your emergency bag you keep in the house in the event that you need you leave home in an emergency.

Calculating Your Deductible

Amount of deductible for hurricane insurance is calculated as a percentage the value of a home’s insured value and not in an amount in dollars.

For instance, a standard homeowners policy that includes 500 deductible will require homeowners to pay for the first $500 in insured damages upon an insurance claim, regardless of the value of the home’s insurance. A hurricane insurance deduct of 5% of the house’s value of $300,000 requires the owner to pay the first $15,000 in insured damage.

The standard hurricane deductible is between 1-5% of the insured value of the home however policies in certain coastal regions that are vulnerable may have a greater amount of deductible.

These States offer hurricane deductibles

The following states, along with the District of Columbia, have at least one windstorm or hurricane deductibles in place by 2021. Alabama, Connecticut, Delaware, Florida, Georgia, Hawaii, Louisiana, Maine, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia and the District of Columbia.

The Insurance Information Institute updates laws in every state that govern the deductibles for windstorms and hurricanes here.


Insurance companies began applying the deductibles for windstorm and hurricane insurance after enduring massive expenses related to storms in the beginning of the 2000s. In the majority of cases, percentage-based deductibles will increase the amount homeowners pay. Residents living in hurricane-prone areas must review their insurance policies to are aware of the amount they could be responsible for if the storm hits.

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