With Florida facing multiple hurricanes impacts in one season, homeowners should know that if they made a hurricane claim and then sustain damage from additional hurricanes, their Hurricane Deductible will generally apply only once that year.
The hurricane deductible of a typical residential policy applies yearly to all covered hurricane damage that occurs during the calendar year (January-December).
In general, if damage from the first hurricane meets or exceeds the hurricane deductible, the All-Other Perils deductible (typically a lower dollar amount) would apply to covered windstorm damage from a second hurricane that year. However, if damage from the first hurricane was less than the hurricane deductible and a second or subsequent hurricane causes damage, the deductible for the second hurricane claim will be the amount left over from the first hurricane deductible or the All Other Perils deductible, whichever is greater, so long as the homeowner is with the same insurance company or within the same insurance group for the second or subsequent windstorm. This is discussed in Florida Statute 627.701(5)(a). In these scenarios, homeowners are not paying full hurricane deductibles more than once per year when they have damage from multiple hurricanes.
On the other hand, homeowners who made a hurricane claim with one insurance company but then changed to a different carrier not in the same insurer group, and had hurricane damage from a subsequent hurricane the same year, would be subject to the full hurricane deductible of the new insurance policy.
Florida’s Chief Financial Officer’s website encourages homeowners to always file claims, even when the windstorm damage is less than their hurricane deductible. When homeowners file a hurricane claim, their insurance company has a record of it, and can apply the amount of damage to the hurricane deductible, even if the initial damage reported is less than the hurricane deductible. The CFO’s website says “very common” to find more hurricane damage once repair work begins. Failing to report hurricane damage timely to the insurance company, or not reporting hurricane damage at all, can potentially lead to delays and denial of claims.
Other rules and policy provisions apply for residential and commercial policies, including policies for condos, apartment buildings, and businesses. Policyholders should review their insurance policies and can contact their insurance company to see if their hurricane damage is covered and how the hurricane deductible applies for their claim. An experienced property damage attorney can answer questions about hurricane claims and deductibles, and assist every step of the way in this process.
