Hurricane vs. Named Storm vs. Wind/Hail Deductibles
A deductible is what you pay out of pocket in a claims scenario before the insurance company starts footing the bill. Home insurance deductibles can change for different types of damage. The most common deductibles are:
- AOP Deductible (all other perils)
- Wind/Hail Deductible
- Hurricane Deductible
- Named Storm Deductible
- Water Damage Deductible
- Earthquake Deductible
- Flood Deductible
Use the deductible associated with the peril that caused the damage. While some deductibles are very obvious, there is more confusion around the Hurricane vs. Named Storm vs. Wind Deductibles, especially in specific coastal home insurance policies.
- Wind Deductible - if wind damages your property from a storm that is not a named storm or hurricane, use this deductible.
- Named Storm Deductible - if a named storm damages your property, use the named storm deductible. (unless that named storm is a hurricane AND you have a hurricane deductible). Storms are "named" by the US National Weather Service, the US National Hurricane Center, or the US National Oceanic and Atmosphere Administration (NOAA).
- Hurricane Deductible - if a hurricane damages your property, use this deductible. A hurricane must have sustained winds at 74 mph or more to be at least a Category 1 Hurricane. Any category 1-5 hurricane would fall under this deductible. Note: some states require at least a Cat 2 hurricane for the hurricane deductible to be activated.
Now keep in mind that hurricane damage is a subset of wind damage. So if your policy does not have a hurricane deductible, the wind deductible would apply if you have hurricane damage. To see how these relate more visually:
Notice hurricanes are a subset of named storms. So if you have two policy choices that are nearly identical in price and coverage, but one has a high named storms deductible, and one has a high hurricane deductible, choose the high hurricane deductible. The high hurricane deductible policy offers more coverage because the high deductible for named storms will activate more frequently than hurricanes.
An example of named storm that is NOT a hurricane is Tropical Storm Sandy.
An example of a hurricane that is also a named storm would be Hurricane Harvey.
Homeowners would like to avoid high deductibles, so go for the smallest circle you can.
Now you have a better understanding of home insurance deductibles!
At your service,