Florida Hurricane Deductibles 101

Since Florida often experiences a greater number of hurricanes than other states, the hurricane deductible on Florida homeowner’s insurance policies differs from most other states. On a Florida homeowner’s insurance policy there are two separate types of deductibles: one for hurricane damage and one for all other perils, which may include but is not limited to fire, theft, vandalism, etc.

A deductible is defined as the amount of money a policy holder pays before their insurance begins to pay out. Hurricane deductibles apply when a named hurricane causes wind damage to your dwelling.

Hurricane deductibles are determined based on the total insured amount of your dwelling, and are generally 2% of the dwelling coverage amount. Homeowners can elect to increase deductibles to 5 or 10 percent of the dwelling coverage, which will lower the annual premium. A common misconception among many homeowners, is that the 2% deductible is based on the cost of the damage; however keep in mind that the percentage applies to the total dwelling amount.

Florida homeowners insurance is unique in how the hurricane deductible applies. For example, if you experience more than one hurricane loss within the same calendar year, the first claim would have the percentage hurricane deductible applied. For any subsequent hurricane loss(es) within that same calendar year, the lower deductible would apply.

For this reason, you are encouraged to report all windstorm related damage as it occurs.

To confirm the amount of your deductible please review the declaration page of your insurance policy or contact your insurance agent.