Understanding Wind Deductibles: Flat, Named Storm, and Hurricane
When it comes to homeowners insurance, understanding the different types of wind deductibles is crucial, especially if you live in an area prone to severe weather. This breaks down the differences between flat wind deductibles, named storm deductibles, and hurricane deductibles to help you make well-informed decisions about your insurance coverage.
What Is a Flat Wind Deductible?
A flat wind deductible is a fixed dollar amount specified on your insurance policy's declaration page.
Example: If your flat wind deductible is $5,000, you’ll pay this amount out-of-pocket before your insurance kicks in for any wind-related damage.
What Is a Hurricane Deductible?
A hurricane deductible is typically a percentage of your home’s replacement cost value and is higher than your standard deductible for other types of damage.
Example: With a 5% hurricane deductible and a home replacement cost of $500,000, your out-of-pocket cost would be $25,000.
Key Point: This deductible applies specifically to damage caused by hurricanes, as defined by your insurance policy.
What Is a Named Storm Deductible?
A named storm deductible works similarly to a hurricane deductible but applies only if the storm has been officially named by the National Weather Service.
Example: If your home’s replacement cost is $500,000 and your named storm deductible is 5%, your deductible would again be $25,000.
Understanding these differences can help you choose the right insurance coverage and prepare for potential out-of-pocket costs. Always review your insurance policy and speak with your insurance agent to clarify the terms specific to your coverage.