Hurricane and percentage deductible calculator
Percentage deductibles surprise many homeowners after a storm. Enter the dwelling limit from the declarations page, the deductible percentage and the amount of the damage to see the deductible in dollars and the claim payment.
The formula
Deductible = Coverage A limit × Deductible percentage, and Claim payment = Covered loss − Deductible (never less than zero).
Worked example
A home is insured for $350,000 with a 2% hurricane deductible. A hurricane causes $22,000 of covered damage.
- Deductible: $350,000 × 2% = $7,000
- Payment: $22,000 − $7,000 = $15,000
With the regular $1,000 deductible the payment would have been $21,000, so the percentage deductible shifted $6,000 of this loss to the homeowner.
What adjusters check on storm claims
- Which deductible the policy triggers: hurricane, named storm, windstorm or hail, or all other perils.
- Whether the storm met the policy's or the state's definition, which often depends on National Hurricane Center watches and warnings.
- Whether the deductible already applied earlier in the calendar year, where state law works that way.
- Flood damage, which is excluded from the homeowners policy and paid, if insured, under a separate flood policy with its own deductibles.
Frequently asked questions
How is a hurricane deductible calculated?
Most hurricane, named storm and wind or hail deductibles are a percentage of the dwelling limit (Coverage A) shown on the declarations page, not a percentage of the loss. A 2% deductible on a home insured for $350,000 is $7,000, no matter how large or small the damage.
Is the hurricane deductible applied per storm or per year?
It depends on the state and the policy. Florida law applies the hurricane deductible on a calendar-year basis for personal residential policies (s. 627.701(5), F.S.): if a second hurricane damages the home in the same year, the insurer may apply the greater of the remaining hurricane deductible or the all-other-perils deductible. Other states and policies apply it per occurrence. Check your declarations page and your state's rules.
What is the difference between a hurricane deductible and a named storm deductible?
A hurricane deductible applies only when the National Hurricane Center has declared a hurricane, under the trigger defined in the policy or state law. A named storm deductible is broader and can apply to any named tropical storm. Wind and hail deductibles apply to any windstorm or hail loss.
Can I lower my hurricane deductible?
Often yes, for a higher premium. Many insurers offer several percentage options, and some states require insurers to offer a flat-dollar option. Ask your agent for a quote comparison.