Hurricane deductible is a percentage added to the homeowner’s insurance policy to limit the insurer’s exposure in hurricane-prone areas. The hurricane deductibles instituted in the homeowner’s policy are typically based on the percentage of the insured value of the house. These deductibles are sometimes set by individual state laws and the percentage varies from insurer to insurer and from one state to another. Hurricane prone areas are considered higher risk therefore constitutes higher deductibles. Coastal regions and some mainland areas such as New Orleans and Florida are considered hurricane prone areas.
A hurricane is a form of tragedy which wrecks a homeowner’s financial stability. Homeowners are often made to pay higher hurricane deductibles after making an insurance claim for the damage resulting from a named hurricane. The number of hurricanes which occur per year is also a factor that is taken into consideration by insurance companies in setting the hurricane deductibles. The dollar amount of hurricane deductibles is required to be stated in the insurance policy regardless of the percentage. Wind damage and tornado are generally considered as hurricanes and the hurricane deductible may be applied if the damage is caused by a named hurricane. In Florida, deductibles apply when the National Weather Service declares a windstorm a hurricane and any damage or loss can be covered. Typically, the deductible starts to be applicable the moment the hurricane warning is issued and up to its termination. It is important for the insurance company to know the whole details and the extent of damages. The applicability of hurricane deductibles only apply once
A lot of homeowner’s insurance policy imposed a minimum of $500 hurricane deductible. But after the hurricane Katrina, plenty of insurance providers imposed deductibles that particularly apply to damages as a result of the hurricane. Typically now, the deductibles imposed are between 2 and 5 percent of the replacement-cost value of the home insured. In Florida, the hurricane deductibles are on a per-season basis, this means that a homeowner would only have to pay a large hurricane deductible one time.
Hurricane preparation for insurance coverage
Before a hurricane hits your place you must be able to verify that the insurance policy you possess is in full force and active. You can do this by checking I the insurance premiums are paid on time, the policy is enough to cover damage to your property and verifying that you observed all the preventive measures required under your insurance policy. It is best to ensure that any insurance claims previously filed have already been fully handled to the insurance company and all repairs necessary and the documents thereto were made appropriately to prevent any misinterpretations or complications that may be carried along with the new storm. It is also best to place all important documents in a safe place they can be protected from any elements including fire and water. The documents including applications, former insurance claims, present insurance contract, financial records and other documents potentially required to support a claim should be safeguarded adequately. Protecting your insurance documents is tantamount to ensuring that you will be financially protected after a hurricane.