How Does a Hurricane Deductible Work?
Hurricane season can seem like it never ends, and with the increase in named storms the gulf states have seen in recent years, it’s likely that you’ll need to file a hurricane insurance claim at some point. Hurricane insurance is part of most homeowners’ insurance policies, but that doesn’t mean you’ll need to pay your homeowners’ insurance deductible. Instead, you’ll need to pay a hurricane deductible for damage resulting from storms. Here’s what your Florida hurricane insurance claims attorney wants you to know before you file a claim with your insurance provider.
What Is a Hurricane Deductible?
A hurricane deductible is the amount you pay your insurance provider when you file hurricane insurance claim. It’s separate from the deductible you pay for non-storm-related damage.
The amount you’ll pay will depend on your insurance provider’s rates, the value of your home, and your coverage limits.
When Does a Hurricane Deductible Apply?
Hurricane deductibles only apply to claims made for hurricane-related damage as defined by Florida’s statutes. For a storm to qualify as a hurricane, the National Weather Service’s National Hurricane Center must declare the storm a hurricane. Note that damage resulting from tropical storms won’t require you to pay the hurricane deductible.
The deductible will be required beginning when the National Hurricane Center issues a hurricane warning for Florida. The deductible will continue until 72 hours after the end of the last hurricane warning or watch for the state. Any claims for damage resulting from storms during that timeframe will be subject to the hurricane deductible.
Hurricane Deductibles Apply for the Year, Not Per Claim
Hurricane deductibles apply for the year, not per claim, meaning you’ll only be required to meet the full amount of your deductible once during the year. Say your hurricane deductible is $6,000 for the year and you file a claim for damage that’s estimated to cost $5,000. You’d pay the full $5,000 out of pocket and notify your insurance provider. Then, your home is impacted by another storm and causes another $5,000 in damage. Since you’ve already paid $5,000 of your $6,000 deductible, you’ll only owe $1,000. After paying that $1,000, your insurance policy will kick in. You won’t be responsible for additional hurricane deductible payments for the rest of the year.
How Insurance Providers Set Deductible Amounts
Deductible amounts can vary from provider to provider. However, most insurance providers choose to set flat rates or set a percentage of your home’s insured value for the deductible. For some homeowners with less valuable homes, the deductible may be $2,000. For other homes that are worth $500,000 or more, the deductible may be $8,000 or more each year.
This is why it’s a good idea to shop around for coverage and compare the rates and deductibles that each provider offers.
What Happens When You File a Hurricane Insurance Claim
To file a hurricane insurance claim, you’ll need to contact your insurance provider as soon as possible. The sooner you do, the sooner you can get your claim started. As part of filing your claim, you’ll typically need to pay the hurricane deductible which may be deducted from your insurance payout if you’re awarded one. Keep in mind that every insurance provider has a different claims process. Contact your agent and let them guide you through the process.
You’ll Want an Attorney on Your Side
Whether you’re worried about your claim or are just starting with the claims filing process, it’s always a good idea to have an experienced Florida hurricane insurance claims attorney on your side from the beginning. They’ll be able to advise you through the process and can represent your interests with your insurance provider if needed.
Parrish Law is here to help. Contact us today to schedule a consultation.