Most homeowners think of their deductible as a single flat dollar amount — say $1,000. But for certain storm losses, many policies apply a separate deductible calculated as a percentage of the home's insured value. This catches people off guard at exactly the wrong time.
How a percentage deductible works
Instead of a flat amount, the deductible is a percentage — often 1% to 5% — of the dwelling coverage limit (Coverage A), not the size of the claim.
- Home insured for $400,000 with a 2% wind/hail deductible
- 2% of $400,000 = $8,000 deductible
- You absorb the first $8,000 of a covered wind or hail loss
That's a much larger out-of-pocket figure than a typical flat deductible.
Named-storm and hurricane deductibles
In coastal and hurricane-prone areas, policies frequently carry a separate hurricane or named-storm deductible that applies only when the storm is officially named. It's distinct from the regular all-other-perils deductible and is almost always a percentage.
What clients should check
- Whether wind/hail has its own deductible separate from the standard one
- Whether a hurricane/named-storm deductible applies and what triggers it
- The actual dollar figure that percentage represents on their home
Knowing the real number ahead of a storm prevents a painful surprise during the claim.
Educational only — confirm against the actual policy and your carrier's guidelines.