What percentage-based deductibles mean — and why knowing yours matters now, not later.
One of the biggest surprises clients face after a hurricane is discovering their deductible isn’t what they expected.
Unlike a standard property deductible — typically a flat dollar amount like $1,000 or $2,500 — many hurricane and windstorm deductibles are calculated as a percentage of your insured value. That difference can translate into thousands of dollars in unexpected out-of-pocket costs at claim time.
Let’s break it down.
What Is a Hurricane Deductible — and How Is It Triggered?
A hurricane or windstorm deductible applies only when specific conditions are met — usually involving a named storm designated by the National Weather Service and damage caused within a defined window (e.g., 72 hours of landfall). Once triggered, this deductible replaces your standard one.
Unlike a flat deductible, hurricane deductibles are most often 1% to 5% of your total insured value.
Example: What That Looks Like in Real Dollars
If your home is insured for $500,000 and your policy includes a 2% hurricane deductible, you’ll be responsible for the first $10,000 in storm-related damage before insurance coverage begins.
For commercial properties, that number can be significantly higher — especially if your limits are based on replacement cost for buildings, contents, and equipment.
Why This Matters More Than Ever
- Underestimating your deductible can delay repairs. Many clients don’t realize how much they’ll need to pay upfront before insurance steps in.
- Rebuild costs are higher than ever. With construction inflation, a deductible set two years ago may represent a much larger financial burden today.
- Deductible terms vary by carrier and state. Some deductibles are storm-specific, others apply to all wind damage. Triggers, percentages, and rules can differ widely.
3 Things You Can Do Today
1. Know your number
Look at your declarations page or contact your Liberty advisor to confirm your hurricane deductible percentage and how it applies.
2. Plan financially
If your deductible is percentage-based, consider setting aside emergency savings or discussing whether a different deductible structure may make sense.
3. Check your commercial exposure
If you manage multiple properties or a complex risk portfolio, consider how aggregate deductibles and per-location terms could impact recovery.
Peace of Mind Comes from Clarity
When a hurricane hits, the last thing you want is uncertainty about what’s covered and what’s not. Knowing your deductible structure ahead of time can help you plan, budget, and act confidently — even under pressure.
Don’t wait until you file a claim to understand your deductible. Reach out to your Liberty advisor for a policy walkthrough — or connect with our team anytime at https://libertycompany.com/contact/.
