It's Time To Prepare For Hurricane Season

Hurricane Season has officially started (June 1st through November 30th).

The National Weather Service predicts to have a total of 12 named storms, 6 hurricanes, and 3 major hurricanes ("major hurricane is defined as a Category 3 or stronger).  Here are a few things to keep in mind for insuring a home against these dangers:

When a named hurricane or storm approaches Florida, insurance companies monitor the storm very closely to see if and when they might suspend binding of new policies.  Often when a named hurricane enters the "box" (see below) North of 15 degrees North Latitude, South of 35 degrees North Latitude, West of 70 degrees West Longitude and East 95 degrees West Longitude, insurance companies suspend binding new policies and all changes to existing policies are also suspended.  Coverages and/or deductibles cannot be changed until the storm has passed.  This applies to auto policies as well.

Most homeowners policies have an "all other peril" (AOP) deductible for losses caused by perils such as vandalism, fire, lightening, and theft and a separate deductible for hurricane losses.

The hurricane deductible is mandated by Florida Statutes.  The hurricane deductible can be as low as $500 but is typically expressed as a percentage, 2-5%, but higher percentages are available.  It is a percentage of the coverage amount, not a percentage of the loss.

For an example, a structure insured for $200,000 with a two percent deductible would have a deductible of $4,000 for damage caused by a hurricane.  The hurricane deductible applies only for a hurricane defined in Florida Statutes.  According to Florida Statute 627.4025, a hurricane means a storm system that has been declared a "hurricane" by the National Hurricane Center or the National Weather Service.  Note, a named tropical storm does not trigger the hurricane deductible.  According to the Florida Statutes, the duration of a hurricane in which the hurricane deductible would apply includes the time period:

• Beginning at the time a hurricane watch or warning is issued for any part of Florida by the National Hurricane Center;
• Continuing for the time period during which the hurricane conditions exist anywhere in Florida; and
• Ending 72 hours following the termination of the 1st hurricane watch or hurricane warning issued.

Many, if not most, insurance policies require that the customer report all hurricane losses, even those that are clearly below the deductible.  Please remember that all policies are different; it is key to read the specific policy in question to see how deductibles are structured.  Also, hurricane deductibles on policies typically can only be changed at the renewal date of the policy.

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