3 Ways to Prevent the Shock of Hurricane Deductibles
Typically home insurance deductibleis a flat amount such as $500.
When a loss occurs, the homeowner pays the deductible and the insurance company pays the rest of the claim.
A hurricane deductible is based on a percentage of the home's insured value.
This percentage varies from state to state and sometimes deductibles are set by state law.
Washington DC, Alabama, Connecticut, Delaware, Florida, Georgia, Hawaii, Louisiana, Maine, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, Texas, and Virginia allow hurricane deductibles that may range anywhere from 1% to 15%.
If you have a house insured for $250,000 in one of these states and have a 5% hurricane deductible, you will pay $12,500 before the insurance company pays anything.
If you are not prepared, this can cause a serious shock to you.
Here are the 3 things you can do to prepare:
A few hurricane prone states have taken action to limit the hurricane deductible to at most once per year.
If you have to file home insurance claim, please visithttp://www.
ReClaimsInc.
com/can-reclaims-help-youfor an excellent free tool that helps you find out whether you got full settlement in 5 minutes of less.
You will find additional insights into home insurance claims.
You can also ask an expert any questions about your home insurance claim.
When a loss occurs, the homeowner pays the deductible and the insurance company pays the rest of the claim.
A hurricane deductible is based on a percentage of the home's insured value.
This percentage varies from state to state and sometimes deductibles are set by state law.
Washington DC, Alabama, Connecticut, Delaware, Florida, Georgia, Hawaii, Louisiana, Maine, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, Texas, and Virginia allow hurricane deductibles that may range anywhere from 1% to 15%.
If you have a house insured for $250,000 in one of these states and have a 5% hurricane deductible, you will pay $12,500 before the insurance company pays anything.
If you are not prepared, this can cause a serious shock to you.
Here are the 3 things you can do to prepare:
- Know your hurricane deductible and how your insurance company invokes it.
Typically the damage due to a hurricane named by the National Hurricane Center will be considered hurricane damages and the hurricane deductibles apply.
Some insurance companies may treat the damage as hurricane when the wind speeds exceed certain limit. - As with traditional insurance deductibles, you can adjust a hurricane deductible.
Lowering it, means you're asking the insurer to assume more of the risk at a higher premium.
Raising it, means you take on more of the risk.
Make sure you are comfortable with the risk you are taking on. - Since the deductible could be quite high, consider setting up a reserve line of credit or another funding source in case you are impacted.
A few hurricane prone states have taken action to limit the hurricane deductible to at most once per year.
If you have to file home insurance claim, please visithttp://www.
ReClaimsInc.
com/can-reclaims-help-youfor an excellent free tool that helps you find out whether you got full settlement in 5 minutes of less.
You will find additional insights into home insurance claims.
You can also ask an expert any questions about your home insurance claim.