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Higher home insurance deductibles may be in place for hurricane coveragePosted On Tue, August 30, 2011
Those filing insurance claims in the wake of Hurricane Irene may not be aware of the new deductibles included in many current homeowners insurance policies, according to the Consumer Federation of America.
In general, the policies require homeowners to pay for a percentage of the damage caused by a hurricane, with deductibles ranging from 1 to 5 percent. The group says these issues could cause financial issues for many.
"Families will have to dig deeper into their pockets because insurers have been steadily increasing hurricane wind coverage deductibles and imposing other policy limitations," said J. Robert Hunter, Director of Insurance for CFA. "This liability shift to consumers may take some by surprise, since disclosures are often buried in renewal paperwork that consumers may not understand or even read."
The CFA also reminded homeowners that while wind damage is part of a policy when consumers research home insurance rates, flood damage is not and coverage for that must be purchased separately.
The hurricane struck the U.S. over the weekend, causing at least 40 deaths spread across nearly a dozen states. It also dumped at least 10 inches of rain in some areas.
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