How percentage hurricane and wind deductibles work, what triggers them, and how to work out the dollar amount before a storm.
Most home insurance deductibles are a flat amount, such as $1,000. In many coastal and storm-prone states, policies also carry a separate hurricane, named-storm or wind/hail deductible written as a percentage — commonly 1% to 5%, and sometimes 10%.
The percentage is of your dwelling coverage (Coverage A), not of the damage. On a home insured for $400,000, a 2% deductible is $8,000. A 5% deductible is $20,000.
With $25,000 of roof and siding damage and a 2% deductible on $400,000, insurance pays $17,000 and you pay the first $8,000. With a 5% deductible, you would pay $20,000 and insurance only $5,000.
Smaller storm claims may fall entirely below the deductible, so you pay the whole repair yourself.
The trigger is written in your policy and set partly by state rules. A hurricane deductible usually applies when the National Weather Service names a storm or issues a hurricane watch or warning. A wind/hail deductible may apply to any windstorm. Read the definition on your policy or ask your agent.
Lower percentages cost more. Compare the extra premium each year with the extra amount you would pay after a storm, and above all make sure you could pay the deductible from savings.
Because the deductible grows as your dwelling limit rises, review it each renewal.