There are two kinds of wind damage deductibles: hurricane deductibles, which apply to damage solely from hurricanes, and windstorm or wind/hail deductibles, which apply to any kind of wind damage. Percentage deductibles typically vary from 1% of a home’s insured value to 5%. In some coastal areas with high wind risk, hurricane deductibles may be higher. The amount the homeowner pays depends on the home’s insured value and the “trigger” selected by the insurance company, which determines under what circumstances the deductible applies.
In some states, policyholders may have the option of paying a higher premium in return for a traditional dollar deductible, depending on how close to the shore they live. In some high-risk coastal areas, insurers may not give policyholders this option, making the percentage deductible mandatory.
In the Central Pacific there are three types of tropical cyclones, each defined by their associated wind speeds.
- Tropical Depression – Winds up to 38 mph and designated by a number (ex. TD-01)
- Tropical Storm – Winds of 39 to 73 mph and designated by a name
- Hurricane – Winds equal to or greater than 74 mph and designated by a name. Hurricanes are broken down further into five categories of increasing wind threat with category 5 being the strongest.
In Hawaii, most homeowner’s insurance provide property coverage for all perils and liability but exclude hurricane insurance. Homeowners must purchase hurricane insurance separately from specialized companies.
This is why it’s important to talk to a knowledgeable insurance professional who can help you determine if you should purchase hurricane insurance. Our concierge insurance agents will take the time to explain your options and tailor a hurricane insurance policy suited just for you. Ensuring the protection of your assets.