Hurricane Deductibles & Your Home
Hurricane insurance can be complicated to navigate and you may be left wondering where the extra cost comes from after a hurricane. Hurricane deductibles are a consequence of Hurricane Andrew, which affected Florida in 1992. The devastation and the billions that it cost insurers led to the addition of another percentage-based deductible separate from Florida’s main homeowners policy. For this reason, it is important to ensure your next home in Winter Garden, FL. Southern Heritage Realty can help you find the perfect home in Winter Garden and provide you the expertise you need to make sure you are prepared to protect your beautiful, new home.
How they work
Due to the devastating nature of the hurricane, you will be expected to pay for two to five percent of the value of your home before the coverage from your insurance kicks in. These costs can be much higher than what you’d be expected to pay in the event of a fire or burglary. Therefore, depending on the cost of your home, you may be expected to pay tens of thousands of dollars out-of-pocket; whereas, in a non-hurricane situation, you would only be expected to pay a few hundred.
These deductibles can hit in the event of a hurricane but there are also similar ones for windstorms that carry a percentage-based deductible as well. This means that even if the storm that hit your house was not officially a hurricane when it made landfall it can still result in high costs for you. Due to the discrepancies, we advise you to read over your insurance policy to ensure your policy does not include a windstorm deductible.
What that means for your home
What this means for your home and your homeowners insurance policy can be different depending on the policy you have and what their technical terms dictate. If your policy says that the hurricane insurance deductible only kicks in when the National Weather Service issues a hurricane watch for your area, then you only have to worry about the deductible in those particular circumstances. However, some policies dictate that they only trigger when a hurricane reaches a certain category. You must be certain of the terms listed in your homeowners insurance policy to be prepared should you ever face the costs of rebuilding your home after a hurricane.
On the other hand, hurricane insurance deductibles can save you money by giving you less costly insurance when there are no hurricanes in sight. Thus, while a storm may result in an extreme expense, you can save money in the present and have funds ready in the event that a hurricane should occur.
Navigating home insurance can be a difficult task; especially when you’re in the process of purchasing new homes Winter Garden FL and elsewhere where hurricanes are frequent. Know what the possible expenses are in your insurance policy and talk to your realtor about how they can impact your home purchasing process. Southern Heritage Realty, a business dedicated to helping you find new homes Winter Garden FL, can assist you in finding the perfect home in Winter Garden and give you the confidence you need in the event of a storm.