Some homeowner’s insurance policies in Florida (and other states like Louisiana as well) have what’s called a named-storm deductible. This type of deductible differs from the standard deductible found in your policy. Rather, it only applies when you file an insurance claim for damage caused by storms that have been officially named by the National Weather Service (NWS) or the National Hurricane Center (NHC).
A named-storm deductible is typically higher than a standard policy deductible and is often a percentage of the home’s value. Here are some key things to know about named-storm deductibles and how they differ from standard deductibles.
When is a Named-Storm Deductible Activated?
A named-storm deductible is activated when a storm reaches a certain level of intensity and receives an official name from the NWS or NHC. This includes hurricanes, tropical storms, and other violent isolated storms. Insurers use named-storm deductibles to manage the higher risk of claims associated with severe weather events.
How Do Named-Storm Deductibles Work?
Unlike standard deductibles, which are usually a fixed dollar amount, named-storm deductibles are typically calculated as a percentage of your property’s value (though they can also be fixed-dollar amounts).
Common named-storm deductible percentages range from 1% to 5%, but they can be as high as 10% in some cases. For example, if a home is insured for $300,000 with a 3% named-storm deductible, the homeowner would be responsible for $9,000 in damages before the insurance coverage kicks in. Named-storm deductibles only apply to claims resulting from named storms, whereas standard deductibles apply to other types of covered losses like fire or theft.
Review Your Policy Language Carefully
In addition to the higher deductible amount, named storms can also lead to complications for homeowners in Florida who are trying to file a wind damage claim as the insurer may state that the damage was caused by a previous storm and deny your claim. It’s essential for homeowners to carefully review their policy documents to understand how and when a named-storm deductible applies. Moreover, Floridians should plan for the potential financial impact of a higher deductible associated with named-storm insurance claims.
Consult an Insurance Law Attorney With Questions
Understanding how a named-storm deductible works and its implications for out-of-pocket costs is crucial for Florida homeowners. If you have questions about your insurance policy or are being treated unfairly in any way by your insurance company, don’t hesitate to contact our legal team at Kandell, Kandell & Petrie. A hurricane can destroy your home in an instant. Let us help ensure you receive the financial relief you deserve for your insurance claim in Florida.
