Hurricane season is here. Making preparations now helps to avoid surprises following a disaster.
One often-overlooked aspect of hurricane recovery is your hurricane deductible for covered losses – the amount you must pay to repair your property before your insurance coverage kicks in. A hurricane deductible differs from the deductible you pay for damage caused by all other perils, like a home fire or covered damage caused by a burst water pipe.
Understanding these differences can help avoid unpleasant surprises and save you money.
1. A Hurricane Deductible Is Higher
Because hurricanes can cause far more damage, your hurricane deductible is generally higher than your deductible for all other perils. It is based on a percentage of your Coverage A, which covers damage to your property’s structure and reflects the cost of rebuilding your property at current construction rates. Homes with Coverage A limits less than $100,000 may have a fixed-dollar amount hurricane deductible. Otherwise, typical hurricane deductibles are 2%, 5%, or 10% of the Coverage A value.
For example, if you select a 2% deductible on a home insured for $300,000, you are responsible for $6,000 in expenses on a covered claim before Citizens will pay for damage covered under your policy. Choosing a higher deductible can lower your premium, but only you can decide whether saving money up front is worth the risk of paying more after a hurricane.
2. It Only Applies to Hurricane Damage
Although it may seem obvious, there are specific conditions that must be met for a Hurricane Deductible to apply.
First, a storm system has to be declared a hurricane by the National Hurricane Center (NHC). Once the NHC issues a hurricane watch or warning for any part of Florida, the Hurricane Deductible applies to covered wind losses. This deductible remains in effect as long as hurricane conditions exist anywhere in the State of Florida. It ends 72 hours after the expiration of the last hurricane watch or warning issued for any part of Florida by the NHC. No other policy deductible may be applied. Limitations may apply.
3. A Unique Calendar-Year Component
Many policyholders, particularly those with a higher hurricane deductible, often think they shouldn’t file a claim if the storm damage is modest; figuring the damage expense will not exceed the deductible.
Although that may be true, it is always a good idea to file a claim. Most importantly, you may not know the full extent of damage or actual cost until an adjuster inspects your property and prepares an estimate. Moderate-looking damage can sometimes hide something more serious. And don’t worry, filing a claim that does not meet the deductible will not raise your premium.
Another important reason to file your claim is that your hurricane deductible applies to all hurricane claims that occurred in one calendar year (January-December), rather than having to pay it for each separate claim. In other words, any expenses paid for one claim go toward satisfying the deductible for future hurricane claims during the same calendar year.
While we hope no one has to face multiple hurricane claims in the same year, it happens. Filing a claim after each storm and documenting damage and repairs while keeping track of receipts and invoices are recommended practices to follow.
Contact Citizens First
This storm season, prepare your home and family to weather any storm. If you need to file a claim, Contact Citizens First! Get a head start on recovery by staying in touch with your agent if you need to file a claim. Remember to take photos of your property damage and keep receipts and invoices for repairs. Stay safe and be prepared!
