Living in Florida, it is highly likely that you will experience a hurricane at some point in time. After all, we had "Matthew" in 2016, "Irma" in 2017 and "Michael" in 2018. Three consecutive years of hurricanes. Let's hope 2019 is calm and quiet! With that said, Florida property insurance policies typically have a separate deductible for hurricanes. This deductible option usually comes in the form of a percentage although some carriers offer lower options. The most common hurricane deductible choice seems to be 2% -but there is much confusion about what that actually means in real numbers. Let's go through and example. Every home insurance policy declarations page shows the Dwelling Value (Coverage A) of the home itself. This is the amount of coverage provided for your dwelling. Your policy hurricane deductible is 2% of whatever that dwelling value shows. Therefore, if your Dwelling Value is $275,000, then your hurricane deductible would be 2% of that amount --which equates into $5,500. In this example, you would be responsible to pay the first $5,500 of your hurricane claim and then the insurance carrier would pick up after the deductible has been met.
If your home was insured for $400,000 and you had a 2% hurricane deductible, then you would pay the first $8,000 in hurricane damage before insurance would pay. Most of the time, you can see your hurricane deductible listed right on the first page of your policy Declarations page. Usually, the dollar amount that correlates with your deductible percent is shown somewhere nearby. The Florida Office of Insurance Regulation also has a good explanation of hurricane deductibles. It is a good idea to double check your insurance policy and make sure you know what your hurricane deductible is ahead of hurricane season. Reach out to us or your current agent if you have any questions or concerns about your deductible or policy coverage.