What is a hurricane deductible and how is it triggered?

In our last blog, we touched on water and tropical storms. Tropical storms also bring heavy winds, so let's take a look at how hurricane deductibles work.

Over the last 10 years, insurers in Connecticut have added hurricane deductibles in an attempt to control pricing by putting some of the risk for catastrophic events back on the policyholder. The hurricane deductible is usually a percentage of the building coverage ranging from one to five percent. For instance, if a building is insured for $250,000 with a 2% hurricane deductible, the hurricane deductible is $5,000.

Prior to Tropical Storm Irene in 2011, insurance companies in Connecticut had different wording for  what triggered hurricane deductibles in a policy. In an effort to bring uniformity, the Sate of Connecticut enacted a law that spelt out what would trigger the deductible. The law states that there must be a named storm with sustained winds of 74 miles per hour or greater anywhere in the State. To be "sustained" the winds must last at least one minute in duration.

During Super Storm Sandy, there were no sustained winds anywhere in the State of 74 miles per hour or greater. Thus, the hurricane deductibles were not triggered. 

If you would like to learn more about homeowners insurance, or any other insurance policy, please contact The Russell Agency. We are located in Southport and serve customers in Westport, Fairfield and all of Connecticut.



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Welcome Tropical Storm Andrea! Thank you for coming, but could you please leave quickly and quietly!