DID YOU KNOW THERE ARE TWO KINDS OF WIND DAMAGE DEDUCTIBLES FOR YOUR HOME?

It’s the start of a new year.  A great time to review and evaluate your homeowners and other insurance policies. 

Did you know?  There are two kinds of wind damage deductibles for your home:

1)        Hurricane deductibles which apply to damage solely from hurricanes.

2)       Windstorm or wind/hail deductibles, which apply to any kind of wind damage.

 Percentage deductibles typically vary from 1 percent of a home's insured value to 5 percent. In some coastal areas with high wind risk, hurricane deductibles may be higher. The amount that the homeowner will pay depends on the home's insured value and the "trigger" selected by the insurance company, which determines under what circumstances the deductible applies.

In some states, policyholders may have the option of paying a higher premium in return for a traditional dollar deductible, depending on how close to the shore they live. In some high-risk coastal areas, insurers may not give policyholders this option, making the percentage deductible mandatory.

There are three deductibles for homeowners policies related to wind damage: hurricane, named storm and windstorm and hail.  Named storm deductibles are activated when the National Hurricane Center reports that a storm reached tropical storm strength when winds reach 39 miles per hour (mph).  Hurricane deductibles are activated when the National Hurricane Center reports that a tropical storm reached hurricane strength, at 74 mph.  Windstorm and hail deductibles are used when homes sustain damage from winds from any source: hurricanes and tropical storms, tornadoes, or other storms.

Insurers generally cannot increase the named storm or hurricane deductible on homeowners insurance policies that have been in effect for more than three years. Insurers cannot impose more than one named storm or hurricane deductible per hurricane season.

State regulations mandate that homeowners may be eligible for premium discounts if they build or retrofit their home to comply with the state’s construction code or install mitigation or retrofitting improvements that are known to reduce loss from a windstorm or hurricane.

Make 2020 the best year yet by being prepared for the unexpected.  We can help you by completing an insurance check-up on your home. Call us today at 504-834-9280.