For those of us who live in Louisiana, we know it’s not uncommon to be hit with multiple damaging storms in a single season. If you have to pay your named-storm or hurricane deductible for each insurance claim you make in a single season, you could quickly go broke. To that end, states like Louisiana have enacted laws to offer some financial protection in these situations.
Key Provisions Under the Single Deductible Statute
(informally known as the single deductible statute) states that for homeowners’ insurance policies issued or renewed after January 1, 2010, any separate deductible that applies for named storms or hurricanes must only be paid on an annual basis.
That means if you incur damage from multiple named storms or hurricanes within a single calendar year, the separate deductible only needs to be met once for all such events in that year.
For most insurance policies with separate deductibles, a hurricane deductible kicks in when a storm is declared a hurricane by the National Hurricane Center (NHC). A named-storm deductible applies when a storm is designated as a named storm by the NHC.
Good Documentation is Imperative
If you experience losses from multiple named storms or hurricanes in a given year, the deductible for subsequent storms will be either the remaining amount of the separate deductible or the standard all-perils deductible, whichever is greater.
Be aware that your insurer will likely require you to keep records of losses to apply them to future claims within the same year. Maintaining good documentation of your damage and any correspondence with your insurance company is also a best practice in the event you need to pursue litigation against your insurer due to bad faith practices.
Contact us at Kandell, Kandell & Petrie with Questions
Understanding named-storm and hurricane deductibles is especially important for Louisiana homeowners as we may face multiple storms in a given year. If you have questions about Louisiana insurance law or believe you are being treated unfairly by your insurance company, don’t hesitate to contact our legal team at Kandell, Kandell & Petrie. Our New Orleans claims advisors are standing by to assist with your questions and, if you do need to file an insurance claim, ensure you get the full relief you deserve for your property damage in Louisiana.
