Frequently Asked Questions about Hurricane Deductibles

FAQs About Hurricane, Tornado, Windstorm

Collapse All Expand All

No, only one hurricane deductible can be taken regardless, if multiple hurricanes hit your property in the same year. If you have damage from two or more hurricanes in one year, you may be required to present records of damages and repairs as some part of the hurricane deductible not used up in the first loss may still apply to the second or more losses as noted in paragraph 2 on the Understanding Hurricane Percentage Deductibles page.

This would depend on how the deductible clause is written in your policy. From what we have seen the insurance industry has pretty much closed this loop hole by crafting language that states the deductible is applied to the covered loss and not items such as flood, exterior paint , landscaping , sea walls, parking lots, etc.,  just to name a few of common items damaged in a hurricane.

At Tutwiler & Associates, we have seen this situation arise several times. It clearly should be of concern to condominium communities and their association boards with multiple buildings insured under one policy. Now is the time to discuss this with your agent/broker, to determine how the deductible will apply before the loss. In a worst case scenario, this may mean no coverage to a damaged building because the deductible was based on the total value of all buildings vs. just the one damaged building, thus making the deductible so high that the loss falls below the high deductible amount.

This is a question you should address with your agent/ broker. Following the 2004 hurricane season when four hurricanes hit with in a two month period, these events were a wake-up call for insurance underwriters. As an example Hurricane Charley crossed the State of Florida and caused serve inland damage to many properties that had regular non-hurricane deductibles. Make sure you understand what your deductible is now, regardless of where your property is located.

Insurance is regulated by each State verses the Federal government (flood insurance under the NFIP is an exception) so you will likely find that your State has passed legislation regarding this issue. In addition to State laws, you may find insurance regulators have issued rulings, emergency rules, and bulletins regarding insurance adjusting issues. You will often see a flurry of these rulings following a major catastrophic event. Thus you need to be aware of the laws and rules that apply within your State.

As an aside, given Florida’s long history and frequency of hurricane events, we have seen a trend where other States are looking to Florida for precedent and guidance on practice and procedures on insurance adjusting issues.