In the state of Florida, most insurance companies have a split deductible on their homeowner’s policies. One deductible is called the All Other Perils deductible and the other deductible is called the Hurricane Deductible.
The All Other Perils deductible typically starts around $500-$1000 and will apply in situations such as fire, theft, lightning, etc. Hurricane deductibles typically starts around 2% and will apply when an insured sustains losses from a hurricane or named storm.
So the question we often hear is – What does the 2% Hurricane deductible mean?
The Hurricane Deductible is 2% of dwelling coverage. Dwelling coverage is listed as Coverage A on your homeowner’s insurance policy and should be equal to the replacement cost of your home. For example, if the replacement cost of your home is $250,000, then Coverage A on your homeowner’s insurance should be no less than $250,000. If you have a 2% hurricane deductible and have $250,000 of dwelling coverage, then your Hurricane deductible will equal $5,000 (e.g. $250,000 X 2%).
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