Living in a hurricane-prone states like Louisiana means that homeowners must be particularly vigilant about their insurance coverage and policy details. One critical aspect that often catches homeowners by surprise is the hurricane deductible. This deductible, which is separate from a standard deductible, can significantly impact how much you pay out of pocket in the event of damage caused by a hurricane.
Here’s more about what a hurricane deductible is, how it differs from standard deductibles and why understanding it is essential for Louisiana homeowners.
What is a Hurricane Deductible?
A hurricane deductible is a specific type of deductible that applies to damage caused by named hurricanes. Unlike a standard deductible, which is typically a fixed dollar amount, hurricane deductibles are often calculated as a percentage of your home’s insured value. Typically, they range from 2-5% of your insured property value but can be even more.
This means that if your home is insured for $300,000 and you have a 5% hurricane deductible, you would need to pay $15,000 out of pocket before your insurance kicks in to cover the rest of the damage.
When Does a Hurricane Deductible Apply?
Hurricane deductibles come into play when a storm is officially classified as a hurricane by the National Weather Service (NWS).
Why It’s Important for Homeowners to Know About Hurricane Deductibles
For homeowners in Louisiana, understanding hurricane deductibles is crucial for several reasons:
- To prepare financially – Knowing your deductible amount helps you prepare financially for potential out-of-pocket expenses following a hurricane. This can be particularly important for budgeting and ensuring you have sufficient emergency funds.
- To compare policies – When shopping for homeowner’s insurance, comparing hurricane deductibles across different policies can help you make an informed decision. Some policies might offer lower deductibles but come with higher premiums, while others may have higher deductibles but lower premiums.
- To squash surprises – Being aware of your hurricane deductible ensures there are no surprises about coverage when you need to file a claim.
Consult an Insurance Law Attorney with Questions
Understanding how hurricane deductibles work and their implications for out-of-pocket costs is imperative for Louisiana 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 Louisiana.
