September 13, 2011

During the passing of a hurricane or tropical storm, winds caused damage to a window of an insured residence causing wind-driven rain to enter the residence and damaging the insured's personal property. The winds of the storm did not directly cause damage to the personal property. The damage to the insured personal property was caused directly by the rain.

The wind-driven rain and windstorm are covered perils in our insurance policy. Our homeowners policy is an open perils policy for both dwelling and personal property coverages. What deductible should we apply to the damage to the insured personal property, the regular deductible, which is $250 in our insurance policy, or the windstorm deductible, which is 2 percent of the limit for personal property?

Puerto Rico Subscriber

The Puerto Rico Windstorm or Hail Percentage Deductible form, HO 03 10 10 08, states that the windstorm deductible is applied in the event of physical loss to property covered under coverages A, B, or C. Therefore, the wind deductible will apply to the personal property damage that your insured has sustained. With a 2 percent wind deductible, the minimum amount of deductible is $500.

This premium content is locked for FC&S Coverage Interpretation Subscribers

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis