Hurricane deductible

A hurricane deductible is a separate deductible that applies to covered damage caused by a hurricane. It is almost always a percentage of the dwelling limit, commonly 1% to 5% and sometimes as high as 10% in the riskiest coastal areas, though a few policies use a flat dollar figure.

Say your dwelling limit is $300,000 and the hurricane deductible is 2%. That is $6,000 out of pocket before the policy pays any hurricane wind damage. A $25,000 roof and interior loss pays $19,000; a $5,000 loss pays nothing.

The trigger is the detail to read. Policies define when the deductible applies, for example when the National Hurricane Center classifies the storm as a hurricane, when a hurricane watch or warning is in effect for your area, or when winds reach hurricane force. A storm that stays a tropical storm may fall under your regular deductible instead, unless the policy uses a named storm deductible. Many states also regulate how often the deductible can apply, such as once per season or calendar year.

Flood and storm surge are excluded from homeowners policies regardless, so they need separate flood coverage. Our guide to hurricane and named-storm deductibles covers state rules, and the hurricane and percentage deductible calculator converts a percentage into dollars.