Florida will never forget Hurricane Andrew. Not only was this storm a monster, it also prompted insurance companies to reevaluate hurricane coverage and move to a percentage-based hurricane deductible. While over a dozen states have hurricane deductibles, Florida's is regulated by state law, Florida Statute 627.701. This law requires insurers to offer a choice of $500, 2 percent, 5 percent, and 10 percent deductible amounts.
If your Florida property insurance policy has a $500 deductible, you'll be responsible for paying $500 out of pocket toward the claim. You also likely pay a high premium for this type of coverage. If you have a percentage-based deductible, then you will pay less in premiums each month, but much more out of pocket should a hurricane damage your property.
Percentage-based deductibles are based on a percentage of the coverage on the dwelling. For example, if your home is insured for $300,000 and you have a 10 percent hurricane deductible, you would be responsible for paying $30,000 out of pocket toward the claim. In Florida, these deductibles apply after the National Weather Service declares a hurricane watch or warning for any part of the state. They remain in effect for up to 72 hours after the hurricane watch or warning ends as well as when hurricane conditions are present in the state.
The Florida hurricane deductible applies just once during a hurricane season. For example, if you meet the hurricane deductible after a June hurricane and your home is damaged yet again by a hurricane in August, you do not have to start over and fund a second deductible.
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Source: The Florida Legislature, "The 2012 Florida Statutes: Insurance Rates and Contracts, 627.701, Liability of Insureds, Coinsurance, Deductibles," retrieved on July 17, 2013