Rising temperatures in the air mean rising temperatures at sea, creating fuel for some of the most powerful storms on earth.
Much of the United States is susceptible to these powerful storms, and in many states, homeowners must deal with a high deductible for resulting damage. Unfortunately, many homeowners don't learn how such a deductible works until after the damage occurs, and they are financially unprepared.
Homeowners are often confused because the policy includes one deductible that is applicable to most types of losses—fire, lightning, etc.—and is a flat dollar amount, such as $500 (often called an "all other perils" deductible). However, in some cases, the policy will include a separate "windstorm," "hurricane" or "named storm" deductible that is calculated based on the value of the home at the time of the damage. For example, a deductible of 5% applied to a home with an insurance value of $200,000 at the time of the storm would equal $10,000. The homeowner is responsible for this dollar amount regardless of the severity of the damage. In some cases, the cost of damage may be expensive but not exceed the high deductible, leaving the homeowner on the hook for all repair costs.
Know your deductible and set aside a pot of money so you are prepared if you need to make a claim.
For more information or answers to your insurance questions, contact us at Allan Block Insurance Agency, www.ambins.com, located in Tarrytown, NY in the heart of Westchester County, a key business district near New York City. We write auto, home, renters, condo, co-op, personal, business, life and group insurance for clients locally and in NYC, CT, NJ, PA, MA and many other states. The Professional Agency with the Personal Touch.