Property Damage Deductible
Deductibles come in all shapes and sizes, and you may be astounded at how large your hurricane insurance deductible is in Florida. A deductible is basically the amount for which you self-insure yourself. Deductibles are also found in car insurance and health insurance.
Most homeowner insurance policies in Florida carry a small deductible – usually anywhere from $1,000 up to $5,000. If you make a homeowner insurance claim or file a property insurance lawsuit, when you recover money from the insurance company, it will be paid to you minus the deductible. For instance, if you recover $50,000 from the insurance company but have a $2,500 deductible, you would be entitled to $47,500 ($50,000 less the $2,500 deductible).
However, that is only for your liability coverages – insurance that covers you for roof leaks, broken pipes, kitchen sink leaks, shower pan leaks – and things of that nature. If you look at your windstorm coverage, you may find a much, much larger deductible. Windstorm deductibles have climbed astronomically since Florida was hit with multiple hurricanes in 2005. Most windstorm deductibles are now a percentage of the insurable value of your home or commercial building. If you do the math, you’ll see that you are self-insuring yourself for a very large amount of damage. With the average price of a house in South Florida being over $300,000, the windstorm deductible could be as high as $30,000!
This is just another reason to consult with the best property damage attorney before a loss occurs or a storm hits, to make sure you are properly insured, and can afford to cover any deductible you might have.