Hurricane Deductible: What and how much is it?

Hurricane Deductible: What and how much is it?

After your home has been hit by a hurricane, you have to look at filing a claim with your insurance company. This is when your hurricane deductible is going to come into play. You need to know what it is, how much it is, and how you can control it. Asking questions when you buy insurance will help you to be in greater control of these things.

What is a hurricane deductible?

If your home has suffered damages from a hurricane, you will need to call the insurance company to file a claim. At this time, they will talk to you about the hurricane deductible. This is the amount of money that you are responsible for paying in order for the insurance company to take care of the rest.

The deductible will apply to just about any kind of damage from a hurricane. There might be wind damage that has led to roofing problems, siding issues, and more. Before the insurance company will pay for any of the repairs, you will be responsible for paying the deductible.

It’s also important to note that a hurricane insurance deductible is completely separate from the standard deductible you would pay on traditional homeowner’s insurance claims.

How much is the hurricane deductible?

The cost of the hurricane deductible can vary from insurance company to insurance company. It’s all the more reason to do your homework when you are getting quotes on a policy. Typically, a hurricane deductible is based on the percentage of the insured value of the home. The percentage can be anywhere from 1% to 5%. Obviously, the higher the percentage, the more you will pay for the deductible.

When you shop for home insurance, your goal should be to achieve the lowest possible hurricane deductible. Especially if you live in an area that is prone to hurricanes, such as southern Florida, you want to have a low deductible so that you have less to pay out-of-pocket.

In some instances, it is possible to get a dollar amount hurricane deductible. This could be a lower expense for you, though you would likely have to pay a higher premium throughout the year. This is something that you will want to explore when you start shopping for homeowners insurance in Florida.

It’s also important understand how the deductibles are calculated. For example, if your home is insured for $3000 and you have a 5% hurricane deductible, you are responsible for the first $15,000 in damages. If you were to file a standard home insurance claim, you may only be responsible for the first $500. It is why hurricane deductibles can be so expensive – and prevent many homeowners from being able to get their homes fixed in a timely fashion.

Talk to an insurance agent and find out how you can keep the hurricane deductible under control.