Hurricane or catastrophic (CAT) deductibles are often added to property insurance policies in coastal regions of the country. This includes the east coast and the gulf regions of the United States. It's a special deductible that only applies to the dwelling or coverage A of a home policy. In commercial insurance, it would apply to the specific structure scheduled. To apply, it needs to meet certain conditions. For example, in NY, the storm must make landfall in the state as a named storm AND have sustained winds of a category 1 hurricane or greater.
the deductible would typically be a percentage of the dwelling. Most large brand companies impose an extremely high hurricane deductible such as 5% of coverage A. This means if your coverage A is $500,000 and you have a 5% deductible ($25,000), the insurance company will not contribute to the repairs of the home until you exceed $25,000 in repairs out of pocket. Only then, will the insurance company pay any additional costs over the hurricane deductible.
Many of the insurance companies we work with are highly rated, well established regional carriers that offer better options for our clients. Many of our partner carriers will give you an option to take 5%, 3% 2% or eliminate the hurricane deductible altogether. Typically, the total premium is less AND they'll offer you a discount for having your auto insurance through Concepts Agency Group!
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