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Can Your Wind Deductible Be Eliminated?

Can Your Wind Deductible Be Eliminated?

Many years ago homeowners and business owners in coastal areas could buy the same policies as everyone else. Property coverage was included and the deductible was the same amount no matter what happened to the building, and life was good. Several years of active hurricane seasons have changed everything. Property insurance in coastal areas is harder to come by, and often includes a higher deductible for wind and hail, named storm, and/or hurricane damage. What Is Your Deductible? If you live in a coastal area, you may have noticed that your policy includes a strong warning that there is a separate deductible for wind-related events. For example, your regular deductible for all other perils might be $1,000, but your deductible for wind/hail, named storm or hurricane might be $5,000. Some areas have even instituted a percentage deductible of 2%, 3%, 5%, or even 10%. The percentage deductible is typically applied to the amount of your insurance, NOT the amount of your damage. For instance, if you have a 5% deductible and you have a building insured for $1,000,000 that sustained $100,000 in damage, your deductible amount would be $50,000, meaning the insurance company would only reimburse you for $50,000 in damage. When Does Your Deductible Apply? Your wind event deductible will apply as it is described in the policy: Wind or Hail: If the damage is incurred due to any event involving wind or hail, such as a tornado or even extremely strong winds, the higher deductible will apply. Named Storm: This is a better option, as the higher deductible will only apply if damage is incurred due to...