SunGate Insurance Agency Blog
Hurricane Season is here and now is the time to start reviewing your Hurricane Deductible! Get rid of your standard 2% Florida hurricane deductible. You can now buy Homeowners Insurance with Hurricane Deductibles options of a flat fee of $500 and $1,000 with up to a $2 million replacement cost!
How Much Are Standard Hurricane Deductibles?
Hurricane deductibles are a percentage of the coverage you have for your home, typically 1%, 2%, 3%, 5%, or 10%. So if you have a 3% hurricane deductible and $300,000 in dwelling coverage for your home, you’d be responsible for the first $9,000 worth of hurricane damage. Your policy can usually cover the rest, depending on its coverage limits and restrictions.
Times (and Rates) Are Changing
"A" rated insurance companies have now begun to charge flat deductible fees as low as $500 for hurricane insurance coverage. For example If you had a home insured at $300,000 and had the old hurricane deductible of 2% and sustained hurricane damage the insurance carrier would not pick up the cost to repair damage until you paid the first $6,000. With this new deductible option, you could pay as low as $500 for hurricane related damage with top rated insurance companies. What’s even better is the lower hurricane deductible will only cost you a few extra dollars per month.
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What Is a Hurricane Deductible?
Like an auto, health, or home insurance deductible, a hurricane deductible is the amount of money you pay out of pocket before your insurance benefits kick in to cover a claim. If you live in an area prone to hurricanes, like Florida, your home insurance will have two deductibles:
The standard deductible. This is the amount you owe when you make a claim for fire, non-hurricane wind or hail, theft, or vandalism damage to the home or your personal belongings.
The hurricane deductible. This is the amount you owe when you make a claim to cover hurricane-related wind or hail damage to the home or your personal property.
History of hurricane and windstorm deductibles
The origins of hurricane deductibles can be traced back to Hurricane Andrew, which ravaged southern Florida in 1992 and left $15.5 billion in losses in its wake. It was the costliest hurricane in U.S. history until 2005, when Hurricane Katrina hit several Gulf States and cost insurers more than $41 billion in losses.
“Insured claims were so significant after Andrew that it prompted property insurers in coastal states to reassess how much damage a serious hurricane could actually do to their books of business,” says III spokesman Michael Barry. “It became clear that property owners had to assume more of the risk.”
As a result hurricane deductibles are now written into many coastal homeowner policies in the following 19 states: 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, D.C.
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Contact SunGate Insurance Agency today learn more about the type of insurance you need. Click here to contact us or call (407) 878-7979.
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