[pastor1189]

How do you read it:

mine is Hurricane Deductible 10%= $11,850
Sinkhole Deductible= 11,850

it just indicates 10%= not 10% of

So what is it? Is it 10% of $11,850

[ebaines]

I would assume that the 10% deductible means 10% of the insured value of the property. So if your house is insured for $118,500 the 10% deductible amount is $11,850. However you should read the terms of the policy carefully - it should define how the deductible is calculated.

[pastor1189]

You may be correct the dwelling is $118,500 10% of that is $11,850 So it looks I would have to pay $11,850 before they pay anything.

[pastor1189]

You may be correct the dwelling is $118,500 10% of that is $11,850 So it looks I would have to pay $11,850 before they pay anything.

Just got an update from a property adjuster: He said:
They would deduct the 11K out of your payment. Does not come out of your pocket.

Sincerely,
Richard P. “Rick” Tutwiler, P.C.L.S.
Licensed Public Adjuster / Loss Appraiser / Certified Windstorm Umpire

[ScottGem]

They would deduct the 11K out of your payment. Does not come out of your pocket.

That doesn't make sense. So if you have $20K in damages, they deduct $11.8K and give you a check for $8,200. How does the $11.8 NOT come out of your pocket?

[pastor1189]

That is the way I see it too. What if the damages were limited to $10,000(A Roof) with the $11,000 dectible.
I would have to pay the whole thing.

[smearcase]

From Consumer Insurance Guide:

"Hurricane deductibles apply solely to damage caused by hurricanes, and typically vary from 1 percent to 5 percent of the insured value of a home. For example, a policyholder whose home is insured for $200,000 with a 2 percent hurricane deductible would have to pay the first $4,000 needed to repair the home, if the loss were caused by a hurricane."

[pastor1189]

From Consumer Insurance Guide:

"Hurricane deductibles apply solely to damage caused by hurricanes, and typically vary from 1 percent to 5 percent of the insured value of a home. For example, a policyholder whose home is insured for $200,000 with a 2 percent hurricane deductible would have to pay the first $4,000 needed to repair the home, if the loss were caused by a hurricane."

Mine is 10%=$11,000 Premium is 2,682 annually. Property adjuster said they would deduct that amount out
of my payoff. I would be out if the damage is under $11,000.

[smearcase]

You would be out the amount of the loss for anything under $ 11,000, and you would be out $ 11,000 for any loss over $ 11K.
BUT-- for a $ 110K loss, you are covered for 90% of the big loss, if I did the math right. For a $ 200K loss, you are covered for $ 189K, or 94.5% of your loss.
We were in the bullseye for this recent hurricane even though we live in a non-hurricane clause state (central PA). I didn't look at our policy but I believe that the provision only applies in coastal states.
We got lucky and suffered no damage but considering what could have happened I think we would have been happy to try and come up with $ 11K as long as we knew the rest would have been covered.
I guess the big question is-should people who live in risky areas pay more or should it be part of everyone's premium and apparently the decision was made that those in risky areas (from a hurricane standpoint) are going to pay higher premiums and have higher deductibles.

[pastor1189]

Very good information. Too bad they do not have a national catastrophe fund

[joypulv]

Very good information. Too bad they do not have a national catastrophe fund

FEMA is that fund. Of course they are the ones who goofed big time after Katrina.

[pastor1189]

Thanks

[smearcase]

Some experts say that since 1900, the 3 worst storms have occurred within the past 3 or so years, and those 3 storms have been 100 year storms. A 100 year storms is roughly defined as a storm that can be expected to occur on the average of once every 100 years, but we have had 3 of them in about the past 3 years. I am not a scientist but that sounds like 100 year storms under the old definition are becoming 1 year storms. Previously a person might have lived their entire life and never seen a fierce 100 year storm. Now everyone may see many of them if this is a trend. I think that we can expect that those hurricane deductibles and premiums will get even higher and less "catastrophic funds" will be available every year in the U.S.

[pastor1189]

Sad commentary

[ebaines]

You need to be very careful when talking about 100 year storms. With the prevalence of news coverage it can seem like major storms are happening all the time, but it's not clear that they are happening more frequently than in the past. The three storms you are referring to occurred in the same area (northeast), but actually not in the same place. Irene was a 100 year storm for parts of Vermont and NH, but damage in NJ and NY was minimal; Hurricane Sandy was a 100 year storm for the coast of NJ (and indeed the last hurricane to make landfall in NJ was in 1903, or a bit over 100 years ago), but not in New England; and I'm not sure what the 3rd storm was - they may be referring to a blizzard that crippled NYC two years ago, but I don't believe that was considered a 100-year storm. The "expert" you are referreing to is a politician (Governor Cuomo), not a climatologist. However, climatologists do agree that storms are expected to become more "freakish" with global warming, and hence what used to be a 100-year storm may now be more like a 25 or 50 year storm.

[pastor1189]

Headlines today in Florida newspapers. Insurance rates may increase in Florida because of
Sandy