We've been getting a lot of emails lately about hurricane deductibles. There is a lot of confusion and misinformation floating around, so we wanted to take the time to clear things up.
Here are the basic things you need to know about your hurricane deductible:
What is a deductible?
A deductible the amount of money that you are responsible for, before your insurance policy is going to kick in to pay for loss & damages. Most of us are most familiar with this concept from dealing with our health insurance providers.
This is of course different from the monthly money you give your insurance company – Those are your premiums.
Often a person with higher monthly premium with have a lower deductible. And conversely, a person with a lower premium with have a higher deductible.
What is a Hurricane or (named storm) deductible?
In many homeowners’ and renter policies there are 2 deductibles.
The first is standard deductible.
This could cover damages to your home caused by fire, wind, hail, etc.
The amount of this deductible varies from policy to policy.
It can be a flat number, or a fixed percent of the value of your home or property.
The 2nd is the “hurricane” or “named storm” deductible.
This comes into play when a storm grows so large, they name it.
The amount of this deductible varies from policy to policy.
It can also be a flat number, or a fixed percent of the value of your home or property.
We have seen some renter policies where the Hurricane Deductible is equal to the standard deductible.
But most often, the hurricane deductible is a percent - and it is higher than the standard deductible.
Understanding your policy.
The important thing to understand is that each policy is different. You will need to get a copy of your policy and read the deductible section. You will not know until you read for yourself.
Don’t listen to your mom, dad, teacher, priest, or some Facebook troll regarding your deductible — Unless they read your policy, they don’t know what you negotiated for.
The good news is, this information is black and white on your policy.
When in doubt, ask for help!
As always, if you need help understanding the deductible section of your policy just ask an attorney to review with you.
Having a clear understanding of what is expected from both you and your insurance provider will save you time, money, and a lot of stress.
So reach out if it is unclear and get the facts you need to make your claim.
~ Good luck from the FCJ Team!
Nicholas V. Cressy
Attorney at Law
Partner | FCJ Law Firm
Email: nicholas@fcjlaw.com
Office: (504) 605-0777