Understanding your wind deductible on your homeowners policy.

There is no standard deductible on a homeowners insurance policy in Louisiana for wind damage.

Some companies offer a wind deductible.

Others offer a hurricane deductible and other policies may have a named storm deductible.

Three common deductible options issued on Louisiana Homeowners Insurance policies

  • Wind or Hail Deductible
  • Named Storm Deductible
  • Hurricane Deductible
wind damage on house
Tree Down in Wind Damage

HOMEOWNERS INSURANCE DEDUCTIBLE TYPES

 

Wind Deductible

This deductible is applied to all wind and hail events regardless if caused by a named storm or hurricane. Just a windy day and a tree falls on your roof, the claim would be subject to the wind deductible.

The amount could be a value such as 1000, 2500 or a % of the insured amount.

Your policy might have a 1%, 2%, 3%, or 5% Wind deductible

Example)   200,000 house with a 2% wind deductible would result in a wind claim subject to a $4,000 deductible.  So a $4,000 deduction off of your claim check would apply to a wind loss.

 

Named Storm Deductible

This deductible applies when a weather event has been declared by the U.S. National Weather Service to be a tropical storm or a hurricane.

The force of wind must have been caused or resulted from the “Named Storm” event. Only when the storm is a given a name will the named storm deductible apply.

If you sustain just strong winds and there is damage to your house, your all other perils deductible would apply and not the named storm deductible.

This deductible is only triggered if damaged is sustained from a named tropical storm or a hurricane.

The most common Named Storm deductibles are 1%, 2%, 3% or 5%

Example)   200,000 house with a 3% named storm deductible would result in a wind claim subject to a $6,000 deductible as a result of a “Named Storm”

 

Hurricane Deductible

This deductible applies when a weather event has been declared by the U.S. National Weather Service to be a Hurricane only.

Deductibles usually range from 1%-5% as well and some companies depending on the location of your house will offer a flat deductible as low as 1000.

Example)  200,000 house with a 5% Hurricane Deductible would result in a wind claim subject to a $10,000 deductible as a result of a Hurricane claim.

If you have a Named Storm Deductible or a Hurricane Deductible and you sustain wind or hail damage not as a result of a Named Storm or Hurricane, your policy would be subject to the “All Other Perils” deductible which usually start at $500.

If your homeowners insurance policy has a hurricane deductible and your property sustains wind damage from a Tropical Storm, your claim check would not be subject to the Hurricane deductible deduction. Only the all other perils deductible would apply. 

It is best you check your home insurance policy and determine what type of  wind deductible you have.

This may not be an issue if you don’t live in a coastal area where wind damage is very common.

Hurricanes, tropical storms and hail damage are very common in Louisiana.

Depending on the type of wind deductible you have could determine the difference in you getting your roof replaced or basically self-insuring your roof out of your own pocket.

wind damaged roof

CHOOSING THE RIGHT DEDUCTIBLE FOR YOU

If you have a wind deductible, you should consider a policy with a named storm or a hurricane deductible.

Depending on the location of your house will determine the deductible options available to you.

You don’t have to wait until your policy expires to move to another homeowners insurance company offering a lower wind deductible in your area.

Some companies may also lure you in with a low wind deductible only to raise your deductible at renewal.

Something to consider is ask how long the insurance company has been writing in your area and how long they have been offering a low wind deductible.

Underwriting guidelines can change very quickly.

Rate stability and claims paying ability are key factors you need to consider when you are considering moving your homeowners insurance.

At this time if you have a 5% hurricane deductible, you should consider moving your homeowners insurance.

Unless you live in a coastal area such as Grand Isle or Lafitte, 

you should be able to get a much lower hurricane deductible.

 

If you need help when choosing your deductible, here is a guide to help you.

http://www.fmagencygroup.com/homeowners-insurance-deductible-guide/

Understanding your deductible on your homeowners policy is important.

 

Examples of Deductibles on home insurance policies.

Here are some types of deductibles offered in South Louisiana

2%, 3% or 5% hurricane deductible

2%, 3% or 5% named storm deductible

2%, 3% or 5% wind/hail deductible

Let’s assume you have a quote for 250,000 dwelling amount on the proposal.

The home quote includes a 2% Hurricane deductible.

The Hurricane deductible is 2% of 250,000.

If you have to make a claim for damage as a result of a hurricane, your deductible will be $5,000.

The insurance company will deduct $5,000 from your homeowners insurance claim estimate.

 

 

Take a look at your insurance cover declarations page and determine the insured value of your policy and the % of your hurricane, named storm or wind/hail deductible.

Check your policy to determine not only the percentage % of your deductible but the type.

Does your neighbor have a tree that could fall on your house?

If you think your neighbor’s homeowners insurance policy will pay the damage to your house,  you are more than likely wrong.

If you have a high wind/hail or a named storm deductible and would like a low hurricane deductible, we have a variety of home insurance options for you.

Unless you live in a coastal area, you should not have a 5% hurricane, named storm or wind/hail deductible on your policy.

 

 

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