What Florida business owners need to know about deductibles during storm season


Just as Florida homeowners insurance policies have both a wind and hurricane deductible, business insurance policies also include separate wind and hurricane deductibles. Additionally, some business insurance carriers also offer “named storm” deductibles for certain policies.

With the effects of Tropical Storm Debby being felt throughout Gainesville and the surrounding areas, it is important to review your business policy before another storm of greater magnitude threatens your place of business.

Wind/hail deductibles are typically written as a percentage of the total insured value or building/contents value of your property. The wind deductible is separate from the “all other perils” deductible on most Florida business insurance policies. The “wind/hail” deductible would apply to damages caused by all windstorms, hail, tornados, and named storms, unless your policy specifies a separate deductible like those shown below.

Hurricane deductibles go into effect when the National Hurricane Center declares a hurricane watch or warning for any part of the state. This deductible will continue to remain in effect while the hurricane exists anywhere within the state and will end 72 hours after the termination of the last hurricane watch or warning.  With hurricane deductibles, the damage must be from a named hurricane.  Any other wind damage would fall back to the “all other perils” deductible.

Named storm deductibles are unique to business insurance and are an optional deductible available through some insurance companies. It works similar to a hurricane deductible but in order to be applied, there must a named storm by the National Hurricane Center.  It could be a Tropical Depression, Storm or Hurricane.   Some carriers offer this deductible as a percentage with a minimum flat dollar amount.  With any other wind, the standard all other perils deductible or another flat deductible would apply.

Contact your insurance provider if you have questions about what your business insurance policy covers and how your deductibles apply.