Wind & Hail vs Named Storm vs Hurricane Deductibles

Since wind is one of the higher risks on the coast, insurance carriers normally have a separate, higher deductible for claims caused by this.

Also this deductible normally is factored as a percentage of the insured value of the home (or can be of the contents limit in a condo unit owners policy) as opposed to the standard deductible (aka AOP – All Other Perils) which is a flat dollar amount.

Because this deductible is inherently higher and relevantly higher as the value of the home increases, it is valuable to limit your exposure to this deductible. In other words, it can be valuable to reduce number of perils that ‘trigger’ this higher deductible to be enforced. Below is a list of the three different types of wind deductibles in order from highest exposure to the costlier deductible to lowest.

Wind & Hail – Damage caused from wind or hail will trigger this deductible. This could be a summer thunderstorm, a winter nor’easter, or any hailstorm. If wind is the cause of the dame, including if wind caused a tree fall into your house, then the wind & hail deductible is enforced.

Named Storm –The trigger for paying this deductible is limited only to damage caused by wind when a Tropical Storm Warning or a Hurricanes Warning is in effect for anywhere in the state where you live.

Hurricane – The trigger for paying this deductible is limited only to damage caused by wind when a Hurricanes Warning is in effect for anywhere in the state where you live.

Assuming an AOP deductible of $2,500 and a ‘wind’ deductible of 2%, here is how your deductible from damage in these three scenarios would be handled:

Home Insured Value Type of Deductible Summer Thunderstorm Tropical Storm Matilda Hurricane Whitney
$500,000 Wind & Hail $10,000 $10,000 $10,000
Named Storm $2,500 $10,000 $10,000
Hurricane $2,500 $2,500 $10,000

It is important to note that not every carrier offers all these options, and there are many other factors that contribute to the value of a homeowner’s insurance policy. Also important is understanding that every percentage option is not available with every carrier. They can range from 1% to 5% or sometimes higher, but some carriers might only have 2 options from which to choose.

Give our office a call if you have any questions or need coverage.