Windstorm vs. Catastrophic Windstorm Deductible
Do you know the difference between a standard windstorm deductible and a catastrophic windstorm deductible on your homeowners or property insurance? These deductibles can be 2%, 5% or even 10% of the value of your dwelling or property. This means if you have a $500,000 home with a 5% windstorm deductible you're not covered for the first $25,000 of wind damage!
A catastrophic windstorm deductible (also known as the hurricane deductible) only applies wind deductible in the event of a named hurricane. But, not all hurricane deductibles are created equal!
Some only apply that higher hurricane deductible, if it's a category one storm (sustained winds over 74 MPH). There are some policies that only apply the higher wind deductible for a much greater category two storm (sustained winds over 96 MPH). Obviously a policy with a “Cat 2” hurricane deductible is better than one with a “Cat 1” deductible.
A standard wind deductible applies the windstorm deductible even if there's no hurricane. The wind damage could be caused by a thunderstorm or nor'easter!
Take a look at your policy for three things:
1. Do you have a windstorm deductible or do you have a catastrophic windstorm deductible?
2. If you have a catastrophic windstorm deductible or a hurricane deductible is it triggered by a category one
or a category two storm?
3. What percentage of your dwelling or property would be applied as a deductible. Is it 2%, 5% or 10%?