Short answer: Florida's hurricane deductible applies once per calendar year, not once per storm, as long as you stay with the same insurer or insurer group. Under section 627.701, Florida Statutes, insurers must offer hurricane deductibles of $500, 2%, 5% and 10% of the dwelling limit, with exceptions for higher-value homes. The dollar amount must appear on your policy.
The options insurers must offer
Section 627.701 requires insurers, before issuing a personal residential policy, to offer hurricane deductibles of $500, 2%, 5% and 10% of the dwelling limit, unless a percentage works out to less than $500. The Florida Department of Financial Services' hurricane deductible page lists the exceptions:
- Dwellings insured for $250,000 or more: the insurer doesn't have to offer the $500 option but must offer 2%, 5% and 10%.
- Dwellings insured for $100,000 to $249,999: instead of a $500 option, an insurer may offer a policy that promises not to nonrenew to reduce hurricane exposure for one renewal period, with a hurricane deductible of up to 2%.
- Dwellings insured for $1 million to $3 million: options may be 3%, 5% and 10%.
- Over $3 million: only 5% and 10% need to be offered.
The hurricane deductible has to be shown as a dollar amount, even when it's set as a percentage.
One deductible per calendar year
For losses covered by the same insurer or insurer group, the hurricane deductible applies once to all covered hurricane losses in a calendar year. If a second hurricane damages your home the same year:
- If the first storm used up the full hurricane deductible, the second claim uses your regular all-other-perils deductible.
- If it was only partly used, you pay the greater of the remaining hurricane deductible or your regular deductible.
Switching to an unrelated insurer mid-year can restart the hurricane deductible, so ask before you move a policy during hurricane season.
What the percentage means in dollars
A 2% deductible on a $400,000 dwelling limit is $8,000. That's per year, not per storm, but it's still cash you need on hand. Check your declarations page for the dollar figure.
Bottom line
Choose your hurricane deductible with your savings in mind, and avoid changing insurers mid-season without checking how the deductible carries over. See wind and hail insurance.
Questions? Contact Alishahi Insurance or call (877) 711-4545. Vea insurance in Florida.
Frequently asked questions
Is Florida's hurricane deductible per storm or per year?
Per calendar year, for losses covered by the same insurer or insurer group.
What hurricane deductible options must Florida insurers offer?
$500, 2%, 5% and 10% of the dwelling limit, with exceptions for homes insured at $250,000 or more and above $1 million.
What happens if a second hurricane hits in the same year?
If the hurricane deductible was fully met, the regular deductible applies; if partly met, you pay the greater of the remaining amount or the regular deductible.
Must the hurricane deductible be shown in dollars?
Yes. Florida requires the deductible to be listed as a dollar amount even if set as a percentage.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.