If you experience storm damage, such as destruction caused to property and infrastructure, a deductible will be in effect. You will encounter a hurricane, hail, and AOP (all other perils) deductible for storm damage.

However, hurricane and tropical storm insurance is complex and can be hard to grasp. Since each state has a different approach to regulating coverage, you must increase your understanding of the topic. In this article, we look into hurricane deductibles and whether they apply to tropical storms.

First, what are hurricane deductibles?

A hurricane deductible is a mandatory higher deductible you pay out of pocket before insurance coverage kicks in. In other words, you must pay these deductibles before insurance proceeds are disbursed after a covered loss. These deductibles are triggered after a hurricane or a tropical storm.

Hurricane deductibles are not always a fixed amount. Instead, they comprise a percentage of the home's insured value. For instance, it can be a 2, 5, or 10 percent deductible on the home's replacement value. You also have the choice to pick a higher percentage, though it puts you responsible for most repair costs if there is a loss.

The hurricane deductible amount depends on state law requirements. Insurance companies often file their deductible amounts with the state.

So, what are the deductibles for tropical storms?

The best way to understand how deductibles apply to tropical storm scenarios is to differentiate hurricanes from tropical storms. Hurricanes are more powerful than tropical storms. For example, a storm with a maximum sustained wind of 39-73 miles per hour qualifies as tropical. However, it becomes a hurricane when the sustained winds exceed 74 miles per hour.

It's important to note that naming a tropical storm can impact your insurance coverage. Usually, when a tropical storm upgrades into a hurricane, it retains its name.

As a homeowner, you should focus more on the AOP deductible. It comprises all your home insurance policy deductibles. Determine whether your policy has a hurricane deductible; consider the AOP deductible.

When do hurricane deductibles apply to a tropical storm?

If you wanted a short answer, then yes, hurricane deductibles can apply to tropical storm scenarios. As mentioned, a hurricane deductible will apply to tropical storm scenarios based on the storm's name. If a state has policies for hurricane and tropical storm deductibles, the hurricane deductible will apply to a tropical storm scenario.

There are exceptions, though. For instance, if there is a hurricane deductible only, a storm must reach a hurricane status and won’t apply as a tropical storm deductible. Also, the deductible will only apply when a hurricane warning is issued. Once there is a warning for a possible hurricane, but instead it downgrades to a storm, a hurricane deductible still applies within 72 hours of the warning..

Another factor is whether you have elected your deductibles to come into effect on a per-occurrence or calendar-year basis. An occurrence deductible will apply whenever a separate storm causes damage that requires insurance protection. It differs from a calendar-year basis, which is the best choice as it protects the entire calendar year without making extra claims after storm damage.

Why you should work with an insurance company

The best way to understand hurricane deductibles is to work with an insurance agency specializing in homeowner's insurance. Since regulations and guidelines vary from state to state, a home insurance agency can help you understand the insurance policy nuances.

Increasing your understanding of the deductibles can help when seeking to protect your home from damage. Ensure you understand homeowners' insurance coverage and triggers that can impact hurricane or tropical storm coverage. New Brookins can help you know hurricane deductibles. They can be your insurance agency and your insurance carrier.