The heavy rainfall, high winds and storm surges associated with hurricanes and other intense storms can devastate any home, even those located hundreds of miles off of a coast. And, because these storms have the potential to cause tens of billions of dollars in damage, insurance providers generally use special, “named storm deductibles,” to provide coverage in the event of a loss. Show
Named storm deductibles are typically higher than traditional fixed-dollar deductibles, but are only triggered under specific circumstances and can vary based on location. However, it’s important to know the details of these deductibles so your family and home are prepared in the event of a severe storm. What’s in a Name? The NWS first started to name storms to make it easier for the public to track and follow severe storms as they developed. However, after large hurricanes and tropical storms began to cause large amounts of damage, insurance providers began looking for ways to mitigate their losses. Named storm deductibles, tied to the time periods surrounding NWS-named storms, ensure that insurance providers are responsible for a smaller portion of any loss caused by a named storm. It’s important to note that other organizations have started to name storms. The Weather Channel, a privately owned weather organization, recently began naming winter storms in order to make tracking them easier for its viewers. However, insurance providers only apply named storm deductibles to storms named by the NWS. The Triggers for Named Storm Deductibles Other triggers can include when a hurricane makes landfall or when a hurricane watch is declared. Because the triggers for named storm deductibles can vary significantly, it’s important to look up the exact rules as defined by the state you live in and your specific insurance policy. Price Differences For example, imagine that your home is insured for $500,000. If your home is damaged by normal wind or hail, you would pay a regular, fixed-dollar deductible—usually $500 or $1,000—before your insurance provider would provide coverage for the remaining damage. However, if the damage was caused during the window of a named storm deductible, your deductible would be calculated using a percentage. For a 5% deductible, this would amount to an out-of pocket expense of $25,000 before your insurance provider would pay for damages. What it Means for You © 2016, 2019 Zywave, Inc. All rights reserved. This Know Your Insurance document is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. About the Author INSURICA Share This Story
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Insuring Your Teen DriverINSURICA2022-12-13T17:49:17+00:00December 13th, 2022|Blog, Personal Insurance| If you are the parent of a teenager who is getting ready to climb behind the steering wheel, insuring them can be an expensive endeavor. This is because the risk of motor vehicle crashes is higher among teenage drivers than among any other age group. How many states plus the Washington DC now have hurricane & named storm deductibles?Nineteen states and the District of Columbia currently have some form of hurricane or named storm deductible in place.
How much is hurricane deductible in Florida?All insurance companies must offer hurricane deductible options of $500, 2 percent, 5 percent, or 10 percent of the policy dwelling or structure limits, unless the specific percentage deductible is less than $500.
What is the hurricane deductible in Louisiana?Louisiana Single Season Named-Storm Deductible
Named storm deductibles in Louisiana are typically between 2% and 10% of the Dwelling Coverage amount. The deductible is subtracted from the total amount of the claim to be paid.
Can you get hurricane insurance in Florida?Yes, homeowners insurance covers hurricane damage in Florida. In some hurricane-prone states, you need a separate windstorm insurance endorsement or policy. But Florida law requires insurers to include hurricane windstorm coverage as part of a property insurance policy.
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