Question 1

What is a hurricane deductible in Florida?

Accepted Answer

A hurricane deductible is a separate, higher deductible that applies specifically to damage caused by hurricanes. In Florida, hurricane deductibles are: expressed as a percentage of the insured value (typically 2%, 5%, or 10%), applied per hurricane event (not per claim), triggered when a hurricane watch or warning is issued by the National Hurricane Center, significantly higher than the standard "all other perils" deductible, and regulated by the Florida Office of Insurance Regulation. For a home insured at $500,000 with a 2% hurricane deductible, the homeowner pays the first $10,000 of hurricane damage.

Question 2

How do hurricane deductibles affect Florida homeowners?

Accepted Answer

Impact: the higher deductible reduces insurance premiums (the trade-off for a lower premium is more out-of-pocket exposure), homeowners may not have sufficient savings to cover the deductible after a hurricane, the deductible applies to the dwelling coverage amount (not the claim amount), multiple hurricanes in a season each have a separate deductible, and mortgage lenders may have requirements about the maximum hurricane deductible allowed. Homeowners should understand their hurricane deductible before hurricane season and maintain adequate emergency savings.

Question 3

Can Florida homeowners choose their hurricane deductible?

Accepted Answer

Yes, with limitations: Florida law requires insurers to offer hurricane deductible options (typically $500, 2%, 5%, and 10%), lower deductibles result in higher premiums, higher deductibles result in lower premiums, mortgage lenders may limit the maximum deductible (typically requiring no more than 5%), and the homeowner should choose based on their financial ability to pay the deductible. Florida law also requires that the hurricane deductible be clearly disclosed in the policy and that the insurer provide an explanation of how the deductible works.

Hurricane Deductible

Hurricane Deductible

How It Works

Homeowner Impact

Related Terms

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