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III reminds homeowners to review their hurricane deductiblesPosted On Fri, July 1, 2011
With the recent formation of the first named hurricane of the season, the Insurance Information Institute says it's the perfect time for homeowners to review their home insurance plans to see how much their hurricane deductible is for.
"Due to increased coastal development and greater hurricane risk, hurricane deductibles were created to help keep private sector property insurance coverage available and affordable by having the policyholder share more of the risk with their insurer," said Loretta Worters.
III says a hurricane deductible is different from a standard home insurance deductible, as it's calculated as a percentage of the insured value of the property. Further, while every home insurance policy has a deductible states don't always allow insurers to incorportate hurricane deductibles into policy plans. The states that do are those where hurricane risk is high, such as Louisiana, Florida, Maine, Maryland, Massachusetts and several others on the Atlantic coast.
As the name implies, III says hurricane deductibles apply to damage resulting from hurricanes only and usually range in value between 1 percent and 5 percent of the home's insured value.
Hurricane deductibles weren't used as frequently last year, as the National Hurricane Center reports that of the 12 named, none made landfall.
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