With the most active months of hurricane season quickly approaching, it’s a smart idea to review your homeowners’ policy to verify your coverage and deductibles. You’ll notice on your declarations page that there are two deductibles – All Other Peril (AOP) and Hurricane. These stand out as something you know you will have to pay out of pocket in the event of a covered loss. What determines the amount of the deductible and what’s the difference?
The All Other Peril, or AOP, deductible is usually a flat dollar amount. The AOP deductible applies to covered damages to your property such as lightning, fire, hail, vandalism, and theft to name a few. This deductible applies per occurrence. Let’s say you have a theft claim in March, a hail claim in July, and a lightning claim in August. Each of these claims will be subject to the full amount of the deductible that’s been set.
The Hurricane deductible applies only to “named hurricanes” and is usually a percentage of your Coverage A amount, or the dwelling coverage limit. The average hurricane deductible is 2% of Coverage A which means if your home is valued at $180,000, your hurricane deductible would be $3,600. This deductible is only applied once per calendar year no matter how many hurricane claims you need to file.
While 2% is the average amount for a hurricane deductible, carriers can also offer 5% or 10% deductibles and some are now starting to offer even lower flat hurricane deductibles for qualified risks.
The hurricane deductible applies:
1. 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.
2. Ending 72 hours after the last hurricane watch or warning is lifted by the National Hurricane Center for any part of Florida.
If you would like to review your policy, and your current AOP and hurricane deductibles. Or if you would like to see if you may qualify for a lower hurricane deductible, please call our office at 863-683-2228 and talk to your licensed customer service representative.