What is Deductible When Your Home is Damaged by Hurricane?

YPA Public Adjusters

If your home is in a vulnerable hurricane area, you should consider checking your homeowner’s insurance to determine your hurricane-related deductible. After insurers encountered numerous costly hurricane disasters over the years, they have shifted more risk to the policyholders. They achieved this by setting higher deductibles, thus increasing the amount of money the customers need to pay out of their pockets. The new method of calculating deductibles involves calculating the amount of money the homeowner is supposed to pay for the storm-related damage before the insurance company starts to pay.

A hurricane deductible applies when the damaged is caused by storms that are categorized as hurricanes as per the National Weather Service or the National Hurricane Center in the US. On the other hand, the windstorm deductible only applies when any other type of wind causes damage.

How does the deductible work?


The standard homeowner policy provides financial protection to both the home and its contents. The financial security offered is in the form of insurance if disaster strikes. An insurance deductible is the amount of money the property owner is required to pay before the insurance company starts to pay for the damages. Homes located in hurricane risk areas have additional windstorm and hurricane insurance deductibles to their insurance cover.

When does the insurance deductible apply?

Insurance deductible only applies in certain circumstances as per your insurance contract. It is upon the insurance company to determine if the homeowner will have to pay the insurance deductible. This is determined by the insurance company’s definition of trigger events. Therefore, you should familiarize with your homeowner’s insurance policy to understand the trigger events because they can vary from one state to another.

How to calculate your deductible

Hurricane insurance deductible is calculated based on the percentage of the home’s insured value instead of the dollar amount. The rate mostly ranges from 1%- 5% although this percentage can vary depending on your insurer or the state. For example, homes located in YPA Public Adjustershurricane-prone areas like coastal areas usually have higher insurance deductibles. You need to determine your insurance deductible percentage to calculate your deductible. For instance, if your home’s hurricane insurance deductible percentage is 5%, and its value is $100,000, you are required to pay $5,000 first before the insurance company pays for the damages.

Hurricane and windstorm insurance deductibles were introduced after insurance companies incurred massive losses over the years. Therefore, homeowners should familiarize themselves with their insurance policies to avoid getting confused or failing to know their insurance deductibles when disaster hits.