Hurricane season is quickly approaching from June 1 to November 30 – that's 6 months long! The most frequent causes of property loss are a result of Wind, Hail, or Water damage. Important reminder, hurricane deductibles are usually a lot higher than the standard homeowners deductible. Deductibles determine your out-of-pocket expense before the insurance kicks in. So, make sure to review your homeowner's policy with our insurance agents to go through all of your coverages and necessities. Below are essential details about the hurricane deductibles:
How do deductibles work?
Let's say your home is insured for $400,000, and your hurricane deductible is 3%.
If there is damage, you are responsible for $12,000 ($400,000 x 3%) and the insurer for the remaining $388,000.
Where can you check your hurricane deductibles?
You should be able to find your hurricane deductibles on your declarations page.
Hurricane deductibles are usually applied annually, but they may be applied more than once per year, depending on which state you reside in.
When do hurricane deductibles kick in?
The trigger for a hurricane deducible may vary from policy to policy, but below are a few common triggers:
The National Weather Service names a tropical storm officially
The National Weather Service declares a hurricane warning or watch
Hurricane wind speeds reach a specific mile per hours
Deductibles typically vary from 1% to 5% of a home's insured value. In some coastal areas where the wind is considered a higher risk, hurricane deductibles may be higher. The amount homeowners will be responsible for depends on the home's insured value and the selected "trigger" by the insurance company. In some states, policyholders may have the option of paying a higher premium in return for a smaller deductible, depending on how close to the shore they live. Insurers may not give policyholders this option in some high-risk coastal areas, making the percentage deductible mandatory. Please see the Infographic for more information: Hurricane Deductibles.
Lastly, if you need to review or update your homeowner's insurance policy, please reach out to us by phone (516) 277-0812 or email at info@thesarricagroup.com.