A homeowner in Pinecrest has a $500,000 dwelling limit and a 5 percent hurricane deductible. In September, a hurricane tears off part of her roof and damages the ceiling below, about $35,000 in all. She pays the first $25,000, and her carrier pays the rest. Six weeks later a second hurricane brushes Miami-Dade and knocks down her fence and part of the pool cage, around $12,000 in damage. She assumes she is facing another $25,000 deductible and almost does not file. In fact, Florida law says she has already met her hurricane deductible for the year, and her second claim carries only her much smaller all-other-perils deductible.
The hurricane deductible is the largest number most Florida homeowners will ever pay out of pocket on a claim, and it works differently from every other deductible on the policy. In Miami, where a single season can bring more than one storm, knowing how it is calculated, when it applies and what happens with a second hurricane is worth understanding before the next storm, not during the claim.
What a Hurricane Deductible Is
A hurricane deductible is a separate deductible that applies only to damage from a hurricane. Your regular all-other-perils deductible, usually a flat amount such as $1,000 or $2,500, applies to everything else, such as a burst pipe or a kitchen fire. The hurricane deductible is usually a percentage of your dwelling limit, commonly 2, 5 or 10 percent, so it grows with the value of your home. On a $500,000 dwelling limit, 2 percent is $10,000, 5 percent is $25,000 and 10 percent is $50,000. Your declarations page shows the percentage and, on most policies, the dollar amount, as our article on how to read your Florida homeowners declarations page explains.
When It Applies
The hurricane deductible applies during a window defined by the National Hurricane Center rather than by what happens on your street. Under Florida law, the window opens when a hurricane watch or warning is issued for any part of Florida and closes 72 hours after the last hurricane watch or warning for any part of the state ends. Damage that happens during that window from the hurricane falls under the hurricane deductible, and during that time no other deductible on the policy applies. A tropical storm that never becomes a hurricane does not trigger it, and storms that change strength near landfall can raise questions that turn on the timing and the policy language, which is worth asking your agent about before the season.
The Calendar-Year Rule
This is the protection most Miami homeowners do not know they have. For personal residential policies, Florida law makes the hurricane deductible apply once per calendar year, January 1 through December 31, to all covered hurricane losses under policies from the same insurer or an insurer in the same group. If a second hurricane causes damage in the same year, the deductible for that claim is the greater of whatever is left of your hurricane deductible or your all-other-perils deductible.
In the Pinecrest example, the homeowner met her full $25,000 hurricane deductible on the first storm, so her second claim carries only her all-other-perils deductible, say $2,500, and the carrier pays the rest. If her first claim had used only part of the hurricane deductible, the unused balance would apply to the second claim instead, as long as it was larger than her all-other-perils deductible.
File Even When the Damage Is Below the Deductible
Because the calendar-year rule gives credit for hurricane losses already paid toward the deductible, it pays to report hurricane damage even when it looks smaller than your deductible. Filing creates a record of the loss, so the amount counts toward your annual deductible if another hurricane strikes later in the year, and it leaves room to add damage you find later, such as a roof leak that shows up weeks after the storm.
Switching Carriers Mid-Year Can Reset It
The calendar-year credit applies only while you stay with the same insurer or an insurer in the same group. If you move your policy to an unrelated company after a hurricane claim, a second hurricane later that year can bring the full hurricane deductible again, with no credit for what you already paid. That matters in Miami, where takeout offers and non-renewals move many homeowners between carriers. If you are changing companies during hurricane season after a claim, weigh the price difference against that risk, as our article on Citizens versus private carriers covers.
Choosing 2, 5 or 10 Percent
Florida law requires insurers to offer several hurricane deductible options, and the choices depend on the dwelling limit. Most Miami homes see 2, 5 and 10 percent, homes with dwelling limits between $1 million and $3 million may be offered 3 percent instead of 2 and homes above $3 million may be offered only 5 and 10 percent. A deductible above 10 percent on a home under $500,000 requires a signed statement from the policyholder and the lender’s approval if there is a mortgage.
A higher percentage lowers the premium, and for some homeowners that trade makes sense. The question to ask is whether you could actually pay the deductible within weeks of a hurricane, when contractors are scarce and prices are high. Convert each option into dollars, compare the premium savings with the extra amount you would carry and choose the one you could pay without borrowing. Lowering the risk itself is often a better way to reduce the premium, and our articles on wind mitigation inspections and how to save money on homeowners insurance in Florida cover how.
What the Hurricane Deductible Does Not Cover
The hurricane deductible applies to wind damage covered by your homeowners policy. It has nothing to do with flood, which is excluded from every homeowners policy and has its own deductible on a separate flood policy, so storm surge and rising water in a hurricane are a flood claim, not a hurricane claim. Condo owners should also know that the association’s hurricane deductible is separate from their own, and a large building deductible can come back to unit owners as an assessment, as our articles on hurricane damage and condo insurance and condo and HOA assessments explain. Our flood insurance page covers the flood side.
What Miami Homeowners Should Confirm
-
What is your hurricane deductible as a percentage and in dollars?
-
What is your all-other-perils deductible?
-
Could you pay the hurricane deductible within weeks of a storm?
-
If you have had a hurricane claim this year, how much of the deductible have you already met?
-
Are you planning to change carriers, and would that reset your deductible this year?
-
Do you have a separate flood policy, and what is its deductible?
Homeowners Insurance in Miami With Prestige Insurance Group
Prestige Insurance Group writes homeowners coverage across Miami, Pinecrest, Kendall, Coral Gables, Doral and the rest of Miami-Dade, as well as in Orlando and across our nine-state footprint for clients who moved out of state and stayed with us. With access to over twenty homeowners carriers in Florida, we can show you how the premium changes at each deductible option and help you choose one you could actually pay. Send us your declarations page, and see our hurricane season insurance checklist and our South Florida homeowners insurance page for more. Call the office nearest you. Se habla español.
Miami: 305-969-8776 Orlando: 407-993-2331
Frequently Asked Questions
Does my hurricane deductible apply to every hurricane?
No. Under Florida law, it applies once per calendar year to covered hurricane losses with the same insurer or insurer group. For a later hurricane that year, you pay the remaining hurricane deductible or your all-other-perils deductible, whichever is greater.
When does the hurricane deductible apply?
From the time a hurricane watch or warning is issued for any part of Florida until 72 hours after the last watch or warning for the state ends. A tropical storm that never becomes a hurricane does not trigger it.
What happens if I switch insurance companies after a hurricane claim?
If the new company is not in the same insurer group, a second hurricane that year can bring the full hurricane deductible again, with no credit for what you already paid.
Should I file a claim if the damage is less than my hurricane deductible?
Usually, yes. Filing records the loss so it counts toward your annual deductible if another hurricane strikes that year, and it leaves room to add damage you discover later.
General information only, not legal advice. Hurricane deductible rules are set by Florida statute and can change, and deductible options, policy language and carrier practices vary. Refer to your actual policy for the terms that apply to your home.
