Did you Know? Named Storms & Their Impacts on Policy Deductibles

Did you know that insurance companies have named-storm deductibles? That’s right, insurers place clauses within policies that allow them to charge a higher deductible than normal, once a storm is named by the National Weather Service.  Named storm deductible can apply to a weather event that is declared a hurricane, typhoon, cyclone, or tropical storm.

What’s a Named Storm Deductible?

Named-storm deducible clauses require a homeowner to pay a certain percentage of their home’s value, ranging from anywhere between 1% and 10%.  This percentage replaces the fixed dollar amount deductible.  This could mean a difference of thousands of dollars for a homeowner.  A policy that typically has a $500 deductible, can skyrocket to potentially $5,000.00 on a home that is insured for $500,000.00.  This can mean a huge and significant burden for the homeowner, on top of having to rebuild other losses.  However, insurers should not increase named storm deductibles on homeowners if the policy has been in effect for more than three years.  In addition, insurers may not impose on a homeowner, more than one named storm deductible per hurricane season.

Does New York Have a Named Storm Clause?

Currently, nineteen states have some form of hurricane or named storm deductible in place.  New York is one of those nineteen states that may have such a clause.  It is important to understand your insurance policy, and any clauses, in the event of a loss.

If you have questions about your insurance policy, and what a named-storm clause may mean for you, you may want to consult with an experienced insurance law attorney who can provide you with assistance.

The Law Office of Craig A. Blumberg is an experienced New York City insurance law firm. If you require quality assistance after having suffered property loss, please contact our firm to schedule a free initial consultation.