Hurricane Deductibles in Florida, Explained

What a hurricane deductible is

Your policy's regular deductible, often called the all-other-perils deductible, applies to things like fire, theft or a burst pipe. Damage caused by a hurricane uses a separate hurricane deductible instead. For most Florida homes it's a percentage of your dwelling coverage (Coverage A), so it grows as your home's insured value grows.

How much it can be

Florida insurers are required to offer hurricane deductible options of $500, 2%, 5% and 10% of dwelling coverage, although which options are available can depend on the home and the carrier. The percentage makes a big difference:

• A home insured for $350,000 with a 2% hurricane deductible: you pay the first $7,000 of hurricane damage.
• The same home with a 5% hurricane deductible: you pay the first $17,500.
• With a 10% hurricane deductible: you pay the first $35,000.

When it applies

Under Florida law, the hurricane deductible applies to hurricane losses during a specific window: it starts when the National Hurricane Center issues a hurricane watch or warning for any part of Florida, and it ends 72 hours after the last hurricane watch or warning for the state is lifted. Damage from a storm that never brings a hurricane watch or warning, such as many tropical storms, is handled under your regular deductible.

Once per season, not once per storm

Florida applies the hurricane deductible once per calendar year when you stay with the same insurer. If a second hurricane damages your home in the same year, you pay whichever is greater: the part of your hurricane deductible you haven't used yet, or your regular deductible. You don't start over with a full hurricane deductible for every storm.

How to choose the right deductible

A higher hurricane deductible lowers your premium, but you need to be able to pay it after a storm, at the same time as other costs like temporary housing. A good rule of thumb is to choose a deductible you could cover from savings. Your mortgage lender may also limit how high it can be.

Other ways to lower your premium without raising your risk:

• A wind mitigation inspection. Florida insurers must offer discounts for features like impact windows, shutters, roof shape and stronger roof-to-wall connections, and the report is generally valid for five years.
• A newer roof, which many carriers price significantly better.
• Comparing carriers. Rates and deductible options vary a lot between companies, which is where an independent broker helps.

What the hurricane deductible doesn't cover

Flooding, including storm surge, is excluded from homeowners policies and needs a separate flood policy with its own deductible. And in some coastal areas, a homeowners policy may exclude wind entirely, with wind coverage written separately, sometimes through Citizens Property Insurance. Check your declarations page so you know exactly what you have.

Frequently asked questions