Hurricane vs Wind Deductibles.

Wind or hurricane deductibles are nothing new, but they are being used now more than ever. So what is the difference between the two? Glad you asked. A wind deductible is a separate deductible on your home/condo or possibly business owners policy that is applied when you suffer a loss that is caused by wind. This is usually shown as a percentage (1-5% or even 10%) on your declaration page of your insurance policy. A hurricane deductible is applied only when you suffer a loss caused by a named storm or in this case a hurricane and is also shown as a percentage.

The best way to explain this is with an example. Let’s say your home insured for $300,000 and you have a $500 deductible and a 2% wind deductible. If you have a loss caused by wind damage your homeowner’s insurance policy would not pay any damages until the amount surpasses your wind deductible. In this case it would be $6,000 (2% x $300,000). Most people are not aware of this and need to make sure they have a reserve fund to pay this potentially high deductible. 

Now let’s say your home is insured for $300,000 and you have a $500 deductible and a 2% hurricane deductible. In the example I used previously, if your home was damaged by wind from a storm other than a hurricane then your deductible would be only $500.

The moral of this story is to always check your policy and talk to your agent. It also pays to shop around. Not all insurance companies include a wind or hurricane deductible on their policy. For homes located in Massachusetts we do have insurance companies who will write a policy for you with no wind or hurricane deductible, even if you live right next to the ocean.

Feel free to email me at steve@hannon-ryan.com, or call our office at 781-293-5500 (Pembroke Office) 508-746-0030 (Plymouth Office) 508-428-6919 (Cape office) or if you prefer you can fill out a home insurance quote form here.

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