There is the insurance deductible and then there is what’s called the hurricane deductible. The latter is a somewhat recent tool with several differences from that of a standard home insurance policy. As the name implies, these deductibles are intended to address hurricane damage and they represent a percentage of the value of your home. It’s worth examining to see if you have such coverage.
Wind destruction and flooding destruction are the two major types of damage from hurricanes. Insurers suffered mounting costs, with more residents living in coastal areas with larger and more regular hurricanes, and homeowners were confronted with dismayingly high home insurance premiums. Hurricane insurance was developed as a means to resolve growing losses and pricey insurance premiums for homeowners. Imposing a separate hurricane deductible enables insurers to evaluate hurricane risk with better accuracy. Insurers can better provide affordable homeowner insurance rates by separating damage caused by weather that is and isn’t catastrophic, such as a windstorm versus a category five hurricane.
In Florida, storm risks and damages are so high that Florida insurers will provide deductibles for hurricanes with percentages around ten or more, meaning Florida homeowners may have to pay up to ten percent of the value of their house out of pocket for losses. You must read and consider what is in the homeowners’ insurance policy whether you reside in Florida or another storm-prone coastal state.
This information is provided by Miami insurance lawyer Alonso & Perez, LLP. Our areas of practice include insurance litigation, foreclosure defense, immigration law, and more. Call 305-676-7545 to speak with one of our attorneys and receive a free consultation We look forward to working with you. Para mas informaciónsobre reclamo de seguro, por favor llamenos.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.