Hurricane Deductible

Most homeowners policies have a deductible. If you make a claim, you have to pay a certain amount before the insurance kicks in.

Say you have a $1,000 deductible. A coordinated squirrel attack caused $3,000 in damage to your roof. You pay the first $1,000 out of pocket, then the insurance company takes the next $2,000.

That deductible works for most damage. However, some policies have a separate deductible for hurricane damage. Hurricanes can cause tremendous damage. They're also difficult to predict. So insurance companies often treat them differently.

Hurricane deductibles are often calculated as a percentage of the home’s value. Say you have a $400,000 home with a 2.5% hurricane deductible. That situation equates to a $10,000 deductible for any hurricane damage.

So, squirrel attack: you pay $1,000 and insurance takes care of the rest. Hurricane damage: you pay $10,000...and only then does the insurance kick in.