Hurricane and Windstorm Deductibles

Author: CADO Admin/Friday, June 29, 2012/Categories: Hurricanes, Wind Pools

Hurricane and Windstorm Deductibles

The source of the information below is the Insurance Information Institute, iii.org


Nineteen states and the District of Columbia have hurricane deductibles: 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 Washington DC. Listed below are reports for these states detailing hurricane deductibles.

  • Trigger: an event that is needed for a hurricane deductible to be applied. Hurricane deductibles are “triggered” only when there is a hurricane, or a tropical storm. Triggers vary by state and insurer and may apply when the National Weather Service (NWS) "names" a tropical storm, declares a hurricane watch or warning or defines the hurricane's intensity. Triggers generally include a timing factor, i.e., damage occurring within 24 hours before the storm is named or a hurricane makes landfall up to as long as 72 hours after the hurricane is downgraded to a lesser storm or a hurricane watch cancelled.

How Hurricane Deductibles Work

There are two kinds of wind damage deductibles: hurricane deductibles, which apply to damage solely from hurricanes, and windstorm or wind/hail deductibles, which apply to any kind of wind damage. Percentage deductibles typically vary from 1 percent of a home's insured value to 5 percent. In some coastal areas with high wind risk, hurricane deductibles may be higher. The amount that the homeowner will pay depends on the home's insured value and the "trigger" selected by the insurance company, which determines under what circumstances the deductible applies. In some states, policyholders may have the option of paying a higher premium in return for a traditional dollar deductible, depending on how close to the shore they live. In some high-risk coastal areas, insurers may not give policyholders this option, making the percentage deductible mandatory. 

The above information is from a Insurance Information Institute, (iii.org) article and a link below will take you to the full article on their website which provides additional information.

Print

Number of views (11115)/Comments (0)

More links

Please login or register to post comments.

Theme picker


KB Search

«January 2021»
SunMonTueWedThuFriSat
272829303112
3456789
10111213141516
171819
2021 NFIP Adjuster Claims Presentation Webinar - Tue Jan 19

2021 NFIP Adjuster Claims Presentation Webinar - Tue Jan 19

Webinar Opens:  8:30 AM Central Time Start Time:  9:00 AM Central Time Lunch Break:  30 Minutes End Time:  3:30 PM Central...
Read more
2021
2021 NFIP Adjuster Claims Presentation Webinar - Thu Jan 21

2021 NFIP Adjuster Claims Presentation Webinar - Thu Jan 21

Webinar Opens:  8:30 AM Central Time Start Time:  9:00 AM Central Time Lunch Break:  30 Minutes End Time:  3:30 PM Central...
Read more
2223
242526
2021 NFIP Adjuster Claims Presentation Webinar - Tue Jan 26

2021 NFIP Adjuster Claims Presentation Webinar - Tue Jan 26

Webinar Opens:  8:30 AM Central Time Start Time:  9:00 AM Central Time Lunch Break:  30 Minutes End Time:  3:30 PM Central...
Read more
2728
2021 NFIP Adjuster Claims Presentation Webinar - Thu Jan 28

2021 NFIP Adjuster Claims Presentation Webinar - Thu Jan 28

Webinar Opens:  8:30 AM Central Time Start Time:  9:00 AM Central Time Lunch Break:  30 Minutes End Time:  3:30 PM Central...
Read more
2930
311

Wind 2021- Virtual Sessions

The Educational and Networking Conference for Property Insurance Claims Professionals The annual Windstorm Insurance Conference (WIND) is a...
Read more
23

Wind 2021- Virtual Sessions

The Educational and Networking Conference for Property Insurance Claims Professionals The annual Windstorm Insurance Conference (WIND) is a...
Read more
456

FAQ

Virtual Claims Adjuster