How a hurricane deductible works
Your policy has two deductibles. The all other perils deductible, often $1,000 to $2,500, applies to fire, water leaks and ordinary storms. The hurricane deductible applies to windstorm damage from a hurricane and is usually a percentage of Coverage A, the dwelling limit on your declarations page.
What Florida law requires
- Under Florida Statute 627.701, insurers must offer hurricane deductibles of $500, 2%, 5% and 10% of the dwelling limit. For dwelling limits of $250,000 or more, the $500 option does not have to be offered.
- The hurricane deductible applies once per calendar year to all hurricane losses with the same insurer or insurer group, not once per storm.
- If a second hurricane hits in the same year, the insurer applies the greater of the hurricane deductible you have not used yet or your all other perils deductible.
- Losses below the deductible still count toward it, so report and document every hurricane loss, even small ones.
- A change to a new insurer outside the original group starts a new deductible.
Condo owners
An HO-6 policy covers the interior and your belongings. The association master policy covers the building, and its hurricane deductible can be passed to owners as a special assessment. Check the master policy deductible before you buy.
Choosing a deductible
Moving from 2% to 5% lowers the premium, but on a $400,000 dwelling it raises your hurricane exposure from $8,000 to $20,000. Pick the level you could pay in cash the month after a storm.
Questions
Does the hurricane deductible apply per storm?
No. For personal residential policies in Florida it applies once per calendar year across all hurricane losses with the same insurer group. Later hurricanes use the greater of the unused balance or the all other perils deductible.
Does it cover flooding from storm surge?
No. Standard homeowners and condo policies exclude flood. Flood needs a separate NFIP or private flood policy with its own deductible.
