In nineteen states, including Rhode Island, Massachusetts, and Connecticut, insurance companies offer a special deductible for hurricane damage. A hurricane deductible applies to damage caused solely from a hurricane as categorized by the National Weather Service. Hurricane deductibles are only triggered when a named hurricane makes landfall in the state where the insured property is located. A deductible would not go into effect for a tropical storm, blizzard, or any other weather phenomenon other than a hurricane.
Hurricane deductibles are usually set between 1% and 5% of the dwelling limit – the amount for which a home is insured. As an example, if your home is insured for $300,000 and your policy has a 5% hurricane deductible, you would be responsible for the first $15,000 in hurricane damage. Hurricane deductibles are not permitted to exceed 5% of the dwelling limit.
While hurricane deductibles are not mandatory, many insurers make this a condition for coverage near the coast. As an agency that provides homeowners insurance to many coastal homes, OceanPoint also represents carriers who specialize in coastal coverage that do not require hurricane deductibles. Depending on the homeowner’s unique set of circumstances, we will recommend a coverage plan best suited for our client, which may or may not include a hurricane deductible.
For more information on hurricane deductibles or if you have any questions about your homeowners policy please call OceanPoint Insurance at 401.847.5200.