What Are Hurricane Deductibles?

New Jersey has had more than its fair share of storms in recent years.

Last week, Storm Isaias reminded us that in addition to all the current challenges we are dealing with, it is still hurricane season.

New Jersey is particularly vulnerable to storm damage, with its location on the eastern seaboard, making it a good idea to consider reviewing your Homeowners Insurance policy’s Hurricane Deductible. 

The National Oceanic and Atmospheric Administration (NOAA) recently updated its prediction that the remainder of the season – until about Nov 30th – will be very active.

Before the next storm hits, it is a good idea to be aware of your insurance deductibles. 

Most homeowner and renters policies have an individual deductible for hurricanes which are separate from the standard dollar deductible amount you choose when buying a policy. A deductible for a hurricane is generally based on a percentage amount of your home value, ranging between 3 to 5 percent. 

Check out this infographic from the Insurance Information Institute to learn more.

New Jersey Hurricane Facts

• New Jersey ranks 3rd for potential exposure to hurricanes
• Total potential damage from a single storm is estimated at $95.5 billion dollars
• The most devastating hurricanes to affect the state in recent years include:
  • Hurricane Sandy
  • Hurricane Irene
  • Hurricane Ivan and Hurricane Jeanne

Does Hurricane Insurance Cover Flood Damage?

Insurance coverage for hurricanes can be found in most, but not all homeowner’s or renters insurance policies. However, this coverage generally only extends to wind damage and/or subsequent damage caused by accompanying rain from above. It does not provide coverage for any flooding caused by rain or storm surge flooding, or water damage caused by an overflowing river.

To protect your home or business, you will need a separate flood insurance policy to cover any damage caused by flooding. Flood insurance is provided through the NFIP (National Flood Insurance Program) and we can assist you in getting coverage.

*Note that there is a 30-day waiting period before flood coverage takes effect, so you should purchase a policy well in advance of a hurricane or flood warning.

To review your policy or learn more about your coverage, contact The Ross Maghan Agency. We’ve been your local, independent insurance agency for more than 84 years and we are here to help.