FLOOD INSURANCE
Hurricane Deductibles
Hurricane: A storm system that has been declared a "hurricane" by the National Hurricane Center.
Hurricane Coverage: Insurance coverage for damage caused by a windstorm during a hurricane. This does not include coverage for flooding.
Hurricane Deductible Definition: The dollar amount paid by the policyholder before an insurance company pays anything. Hurricane deductibles are typically 2, 5 or 10 percent of the amount of insurance covering the dwelling at the time of loss. In Florida, you only have to pay one hurricane deductible within the calendar year, provided you are insured with the same insurance company or group of companies for the second or subsequent hurricanes during the same calendar year.
When Does A Hurricane Deductible Apply?
The hurricane deductible applies:
-Beginning when a hurricane watch or warning is issued by the National Hurricane Center for any part of Florida. There must be a named hurricane at the time the first watch or warning
is issued, if not, the hurricane deductible starts as soon as the storm becomes a named hurricane.
-Ending 72 hours after the last hurricane watch or warning is lifted by the National Hurricane Center for any part of Florida.
Insurance Claims: Wind Damage Versus Floodwater Damage
What You Need to Know When Filing a Claim
Natural disasters such as hurricanes, tropical storms and nor'easters can cause wind and floodwater damage to your property. Your National Flood Insurance Program (NIP) policy works with your homeowners or commercial property insurance to cover any sustained damage. You will likely need to file insurance claims with both entities and work with multiple adjusters.
Distinguishing the Cause of Damage
Your flood insurance policy only covers physical damage directly caused by a flood. For
example, an NIP policy covers damage caused by water entering your home from the
ground up due to storm surge, heavy rainfall or the overflow of a body of water, such as a lake or river. Other policies, such as homeowners policies, do not cover water damage from flooding but may cover damage from other perils, such as wind-driven rain or fire.
If river overflow or rain causes flash flooding that enters your home, this is considered a direct result of flooding and would likely be covered under your flood insurancepolicy. However, if rain is propelled into a covered structure by wind, that is considered wind-driven rain and is not covered under your flood insurance policy. The same is true if your roof is damaged and water enters through the ceiling. That is water damage as a result of wind damage and is not covered under your flood insurance policy.