Recently, I was asked by Local NBC 15 reporter Darwin Singleton to appear on his “Hurricane Preparedness” segment to help Mobile and Baldwin County residents prepare for hurricane season. Besides getting in a few laugh with Darwin’s “social distancing microphone” (see above photo). We discussed one very important thing that people need to realize regarding their homeowner insurance ahead of hurricane season.
In this blog, we are going to break that down.
Do you have a wind, named storm, or hurricane deductible?
To the naked, extremely bored eye while reading an insurance policy, it may seem that the difference between a wind, named storm, or hurricane deductible is very minuscule. We can assure you that is not even close to being true. Why is this important, because these three deductibles are always higher than the normal All other perils deductible. I break the difference between these three down below.
Wind Deductible: Applies in the event of any wind event. Meaning, if you have any wind caused damage then this higher deductible will apply.
Named Storm Deductible: Only applies in the event of a tropical storm and/or hurricane. In this case, if you have regular wind damage not related to a “named storm” you are in pretty good shape and the lower All other perils deductible should apply. Also, just because your grandson has a name and feels like a “storm when he comes to your house…any damage he causes would not trigger the higher deductible ;).
Hurricane Deductible: Only applies in the event of a Hurricane.
As you can see, there are huge differences between these deductibles. But the question remains, “Do people with wind deductibles have an insufficient policy?”
The answer depends.
The point of my article was not to put down policies with wind deductibles, it is to make you aware that you may have one, and as long as you know and your deductible meets your risk tolerance, you are ok! If you aren’t comfortable with your deductible ask your insurance agent to find you a policy that has a named storm or hurricane deductible at renewal.
If you are not sure what deductible you have, call your insurance agent or let Portal do an insurance policy stress test here. We would be happy to take a look.