19 July, 2018
Do You Have a Hurricane Deductible?By
Basics of a Hurricane Deductible
Hurricane season is upon us, and now is a good time for homeowners to become familiar with how their insurance protects their property. Many homeowners don’t realize that a hurricane, tropical storm, or even a windstorm can bump up your standard home insurance deductible by thousands of dollars. Do you know if your insurance has a hurricane deductible and how it works? Read on for more information.
A hurricane deductible is an amount a homeowner must pay before insurance will cover the damage caused by a hurricane. This deductible is separate from regular homeowners insurance deductibles and is based on a percentage of a home’s value, typically ranging from 1 percent to 5 percent of the insured value of the home.
Hurricane deductibles have been added to many homeowners’ policies as a result of increased development along the coasts and a greater risk of hurricanes. With hurricane deductibles, consumers now share more of the hurricane risk with insurance companies.
Connecticut insurers are able to tack hurricane deductibles onto home insurance policies, helping homeowners to lower the cost of property insurance on a year-to-year basis because they assume more of the risk. In essence, a hurricane deductible allows you to pay less today, but more in out-of-pocket costs if a hurricane hits.
Every homeowner should make sure they understand what is and is not covered under their home insurance policy. Homeowners who have questions about their insurance policy should contact their insurance agent for clarification and to help bridge any gaps in coverage.
For help finding the right personal insurance in Connecticut, and the surrounding cities, contact the independent insurance professionals at North American Underwriters. Serving New Britain, Bristol, Farmington, Plainville, and all of Connecticut; we will work with you to ensure you have the right amount of protection for your specific situation, all at the right price.