Hurricane Deductibles,
Explained Before the Storm.
Your hurricane deductible is probably not $1,000. In Florida it is usually a percentage of your dwelling coverage, and the time to understand it is before a storm is in the Gulf.
The Short Version
- Most Florida homeowners policies have two deductibles: one for hurricanes and one for everything else.
- Hurricane deductibles are usually a percentage of your dwelling (Coverage A) limit, such as 2%, 5% or 10%.
- On a home insured for $350,000, a 2% deductible is $7,000. A 5% deductible is $17,500.
- In Florida, the hurricane deductible generally applies on a calendar-year basis, not per storm.
- A higher deductible lowers your premium, but only choose one you could actually pay.
After Hurricane Michael, we sat down with a lot of families in Panama City, Mexico Beach and Port St. Joe who were surprised by their deductible. They remembered a $1,000 deductible from the day they bought the policy. That was their regular deductible. The hurricane deductible was a percentage, and it was much bigger.
Two deductibles, not one
Most Florida homeowners policies have an all other perils (AOP) deductible, often $1,000 to $2,500, for things like fire, theft or a burst pipe. They also have a separate hurricane deductible that applies to damage caused by a hurricane.
How the percentage works
The hurricane deductible is usually a percentage of your dwelling coverage, not of the damage. Here is what that looks like:
| Dwelling coverage | 2% | 5% | 10% |
|---|---|---|---|
| $250,000 | $5,000 | $12,500 | $25,000 |
| $350,000 | $7,000 | $17,500 | $35,000 |
| $500,000 | $10,000 | $25,000 | $50,000 |
When does it apply?
Your policy defines it, but in Florida the hurricane deductible generally applies to losses from a hurricane during the period when the National Hurricane Center has a hurricane watch or warning in effect for any part of Florida, through a set time after it ends. Florida also applies the hurricane deductible on a calendar-year basis. If you have more than one hurricane claim in the same year, later claims generally use the remaining hurricane deductible or your AOP deductible, whichever is greater. Keep records of every claim.
How to choose
- Look at your savings. Pick a deductible you could cover from savings or an emergency fund.
- Compare the premium difference. Sometimes moving from 2% to 5% saves a lot. Sometimes it barely moves the price.
- Check your lender. Some mortgage companies limit how high your deductible can be.
- Revisit every year. As your dwelling limit rises with building costs, your percentage deductible rises too.
Lower the premium another way
If the premium is the problem, a wind-mitigation inspection or a fresh comparison across carriers may save more than raising your deductible. That is exactly what an independent agency is for.
Frequently Asked Questions
What is a hurricane deductible?
A separate deductible on Florida homeowners policies that applies to hurricane damage. It is usually a percentage of your dwelling coverage.
Is the hurricane deductible per storm?
In Florida it generally applies on a calendar-year basis. Later hurricane claims in the same year generally use the remaining hurricane deductible or your regular deductible, whichever is greater.
Does the hurricane deductible apply to flood damage?
No. Homeowners policies do not cover flood. Flood damage is covered only by a separate flood policy with its own deductible.
Can I lower my hurricane deductible?
Many carriers offer lower options, such as 2% or a flat amount, for a higher premium. Your agent can show you the price difference.
Know your number before the next storm.
We will review your hurricane deductible, compare options with 20+ carriers and help you find the right balance.
This article is general information, not legal or financial advice. Coverage is subject to policy terms, underwriting and availability. Rules and programs can change, so confirm details with your agent.
