Sep 27, 2017
About Florida Hurricane Deductibles
The hurricane deductible is mandated by Florida statutes.
Deductible is expressed as a percentage, typically 2-5%, of the coverage amount, not a percentage of the loss. For an example, a structure insured for $200,000 with a two percent deductible would have a deductible of $4,000 for damage caused by a hurricane.
The hurricane deductible applies only for a hurricane as defined in the statutes. According to Florida Statute 627.4025, a hurricane means a storm system that has been declared a “hurricane” by the National Hurricane Center or the National Weather Service. Note that a named tropical storm does not trigger the hurricane deductible.
According to the statutes, the duration of a hurricane in which the hurricane deductible would apply includes the time period:
- Beginning at the time a hurricane watch or warning is issued for any part of Florida by the National Hurricane Center.
- Continuing for the time period during which the hurricane conditions exist anywhere in Florida; and ending 72 hours following the termination of the last hurricane watch or hurricane warning issued.
The deductible applies on a calendar year basis. This calendar year deductible applies only if the customer is insured by the same company during the deductible period.
Many, if not most, insurance policies require that the customer report all hurricane losses, even those that are clearly below the deductible.
It is crucial to read the specific policy in question to see how deductibles are structured. For example, non-admitted insurance carriers may not the same as admitted carriers with some of the state’s regulations regarding hurricane deductibles.
Hurricane deductibles on policies typically can only be changed at the renewal date of the policy.
For questions and more information, please contact Traci Sihle Sihle Insurance Group · 1021 Douglas Ave. · Altamonte Springs, Fl 32714 · USA
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