A standard homeowners policy covers damage from wind. However, damage from hurricane strength winds is a different matter and can cause severe damage to property, even demolishing buildings. Many states in hurricane prone areas have developed specific deductibles that apply in the event of hurricanes. Many endorsements use watches and warnings from the National Hurricane Center (NHC) or the National Weather Service (NWS) as the trigger for use of the deductibles. Both agencies are part of the National Oceanic and Atmospheric Administration (NOAA). Deductibles are often available as a dollar amount or a percentage, and the insured selects the deductible he is comfortable with and the deductible is scheduled onto the endorsement.
Florida is the only state with calendar year deductibles. Calendar year deductibles are applicable to all losses that occur in one calendar year. If the policy spans more than one calendar year, then two separate calendar year deductibles are used. For example, a policy is effective 6/1/16 through 6/1/17. The calendar year deductible is $5,000. In August 2016, the insured sustains a hurricane loss and the $5,000 deductible is applied. In June 2017, the insured sustains another hurricane loss. Because this is a different year, even though it is the same policy period, another $5,000 hurricane deductible is applied.
Endorsement | Dollar amount deductible | Percentage deductible | When the deductible is in effect or applied |
HO 03 18 05 11-AL, DE, GA, MA, NH | $1,000 $2,000 $5,000 $7,500 $10,000 | 1% 2% 5% 7.5% 10% | Beginning when a hurricane watch/warning is issued by NHC, ends 24 hours after termination of last watch/warning. |
HO 03 59 – CT | $1,000 $2,000 $5,000 $7,500 $10,000 | 1% 2% 5% 7.5% 10% | Beginning when a hurricane warning is issued for any part of CT by NHC, ends 24 hours after the earlier of termination of last hurricane warning or after hurricane downgraded by NHC. |
HO 03 53 – LA | $1,000 $2,000 $5,000 $7,500 $10,000 | 1% 2% 5% 7.5% 10% | Beginning when a hurricane watch/warning is issued by NHC, ends 24 hours after termination of last watch/warning. |
HO 03 52 – FL- calendar year fixed dollar | $1,000 $2,000 $5,000 $7,500 $10,000 |
| When the direct force of a windstorm during a hurricane damages the inside of a building or causes an opening which allows property in a building to be damaged by rain, snow, sleet, hail, sand, dust entering through the opening. |
HO 03 55 – FL- calendar year percentage, supplemental record-keeping |
| 1% 2% 5% 7.5% 10% | When the direct force of a windstorm during a hurricane damages the inside of a building or causes an opening which allows property in a building to be damaged by rain, snow, sleet, hail, sand, dust entering through the opening. |
HO 03 51 – FL-calendar year percentage, supplemental reporting |
| 1% 2% 5% 7.5% 10% | When the direct force of a windstorm during a hurricane damages the inside of a building or causes an opening which allows property in a building to be damaged by rain, snow, sleet, hail, sand, dust entering through the opening. |
HO 03 60 – MD | $1,000 $2,000 $5,000 $7,500 $10,000 | 1% 2% 5% 7.5% 10% | Beginning when a hurricane warning is issued for any part of MD by NHC, ends 24 hours after the termination of last hurricane warning by the NHC. |
HO 03 30 – NJ | $1,000 $2,000 $5,000 $7,500 $10,000 | 1% 2% 5% 7.5% 10% | Beginning 12 hours prior to the first time sustained winds of 74 mph or greater have been measured in NJ by the NWS. Continues during the time hurricane conditions exist and ends 12 hours after the last hurricane force winds of 74 mph or greater have been measured by the NWS. |
HO 03 61 – SC | $1,000 $2,000 $5,000 $7,500 $10,000 | 1% 2% 5% 7.5% 10% | Beginning when a hurricane watch/warning is issued by the NHC, ends 24 hours after termination of last watch/warning. |
HO 03 65 – ME | $1,000 $2,000 $5,000 $7,500 $10,000
| 1% 2% 5% 7.5% 10% | Beginning when a hurricane warning is issued by the NHC, for any part of forecast zone that includes municipality that contains insured property and ends 24 hours after the termination of last hurricane warning by the NHC for that forecast zone. |
HO 03 29 – MA | $1,000 $2,000 $5,000 $7,500 $10,000 | 1% 2% 5% 7.5% 10% | Beginning when a hurricane watch/warning is issued by the NHC for any part of state, ends 24 hours after the termination of the last watch/warning for any part of state. |
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