Definition
Named storm deductibles are typically higher percentages (2-5%) rather than fixed amounts. In hurricane areas, this can mean $8,000-$20,000 out-of-pocket costs.
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Named storm deductibles are percentages (2-5%) of home value rather than fixed amounts, resulting in higher out-of-pocket costs. These deductibles apply to wind, hail, and sometimes water damage from storms. Understanding named storm deductibles is critical in hurricane-prone areas. Deductible amount significantly affects claims payouts.
Pro Tip
In hurricane areas, calculate potential named storm deductible costs. This can be substantial.
Example
A 2% named storm deductible on a $400,000 home means $8,000 out-of-pocket for hurricane damage.