What is the definition of Hurricane Deductible?

Hurricane Deductible refers to the dollar amount or to the percentage that limits the risk covered by the insurance policy.

This deductible is what the policy owner has to pay first before the insurance company will pay for the rest of the claim.

The hurricane deductible is higher for hurricane-prone areas, such as Florida and the rest of the eastern seaboard. This is usually computed as a percentage of the insured value of the house. The amount or percentage of the deductible may vary from state to state. In hurricane-prone states, this deductible may even be mandated and limited by law.

For example, a house is insured for $150,000 under a policy with a hurricane deductible of 2%. The insured will pay the first $3,000 and the balance of that will be paid by the insurance company.

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