by: Caroline Hallett Owner, Hallett Insurance
Does your homeowner’s hurricane deductible go down every year on your current homeowner’s policy?
Did you even know a diminishing hurricane deductible was an option?
Most hurricane deductibles are 2% of the coverage you have on your Dwelling (home). To put this is real numbers… if your Home is insured for $250,000 and you have a 2% hurricane deductible, your hurricane deductible for any one hurricane loss is $5,000!
That is a lot of cash that the insured will have to pay out before the insurance company begins to cover a hurricane claim.
How do these diminishing deductibles work? Starting on the day you sign up; your hurricane deductible begins to disappear.
You’ll get 5% off in the first year, followed by an increased reduction in each claim free year. After you have been claim-free for five years your hurricane deductible will be ZERO!
As you may already know most homeowner’s policies have two types of deductible; All Other Peril Deductible and Hurricane Deductible.
The All Other Peril deductible applies to covered homeowner’s losses that are not a result of hurricane damage. A good example might be fire or lightning damage.
At least one Florida insurance carrier also offers a diminishing deductible for the All Other Peril deductible. It works much like the hurricane deductible as it diminishes each year that you are claim- free. After you have been claim-free for five years your All Other Peril deductible will also be ZERO.
These diminishing deductibles go a long way in off setting the cost to the insured when dealing with a loss to their home.
If you have any questions or require further explanation, please feel free to give Caroline or Fletcher a call at Hallett Insurance. We welcome your phone call.