They are calculated as a percentage of the dollar amount of coverage on the dwelling. The trigger for hurricane deductibles, or the point at which they apply, varies by company. Triggers have some common characteristics:
After these extraordinary losses, reinsurance companies, insurers that share the cost of claims with primary companies, such as homeowners insurers, said that they could not assume so much risk and that primary companies must reduce their potential losses.
During the Atlantic hurricane season, which lasts from June to November, every coastal state from Florida to Maine could potentially be hit by a storm. Increasing development along the coastal areas of these states has put more and more homes at risk of severe windstorm damage.
To limit their exposure to catastrophic losses from natural disasters, insurers in these states sell homeowners insurance policies with percentage deductibles for storm damage instead of the traditional dollar deductibles, which are used for other types of losses such as fire damage and theft.
The details of hurricane deductibles are spelled out on the declarations page of homeowners policies. Nineteen states and the District of Columbia have hurricane deductibles: Listed below are reports for these states detailing hurricane deductibles.
Beach Plans operate in specific coastal territories, defined by zip codes, counties or geography; FAIR Plans are generally statewide. Policyholders may opt for these higher deductibles in order to pay a lower premium.
Triggers generally include a timing factor, i.
How Hurricane Deductibles Work There are two kinds of wind damage deductibles: In some coastal areas with high wind risk, hurricane deductibles may be higher. In some states, policyholders may have the option of paying a higher premium in return for a traditional dollar deductible, depending on how close to the shore they live.
In some high-risk coastal areas, insurers may not give policyholders this option, making the percentage deductible mandatory. Hurricane and Windstorm Deductibles by State State regulations change periodically; please reference the state-specific links provided for the latest information.
Alabama Hurricane Deductibles State law mandates that insurers offer discounts to policyholders who strengthen their homes against wind damage. See Department of Insurance website for details. The plan offers discounts on policies covering residential dwellings built to, or retrofitted to fortified wind resistive standards, as certified by the IBHS.
See website for details. Alabama Department of Insurance Connecticut Hurricane Deductibles The trigger for hurricane deductibles, or the point at which they apply, is by law when the National Weather Service NWS declares a hurricane that records winds of 74 miles per hour or more anywhere in Connecticut.
The hurricane deductible is in effect until 24 hours following termination of the last hurricane warning issued for any part of Connecticut by the NWS; or 24 hours after the hurricane is downgraded from a hurricane by the NWS for any part of Connecticut.
The insurance department has guidelines for shutter mitigation requirements and details The Connecticut FAIR Plan insures homeowners who have not been able to find coverage elsewhere.
Dwellings located within 2, feet of the shoreline will have two deductibles—one deductible for named perils and a separate hurricane deductible of 5 percent.Alabama Insurance Underwriting Association (Beach Plan): The Alabama Insurance Underwriting Association (AIUA) provides a wind and hail only policy for homes, condominiums, mobile homes and commercial businesses located in the Beach and Seacoast territories of Baldwin and Mobile Counties.
The territories are determined . We would like to show you a description here but the site won’t allow us. Georgia Underwriting Association offers property insurance to those in Suwanee and the rest of Georgia. This includes insurance for businesses and homes.
With the help of the Georgia Underwriting Association families and business owners receive compensation if and when disaster strikes. TIP: Any high risk home insurance policy should be considered last resort.
Make sure you thoroughly shop around before you settle for a high risk policy. To ensure continued economic growth in their territories, states need to assure that there is some type of home insurance coverage available.
We would like to show you a description here but the site won’t allow us. Georgia Underwriting Association login and bill pay links, customer care, service, support and contact info. Find Georgia Underwriting Association phone numbers, email addresses, and links.