Named Storm Deductibles
The heavy rainfall, high winds and storm surges associated with hurricanes and other intense storms can devastate any home, even those located hundreds of miles off of a coast. And, because these storms have the potential to cause tens of billions of dollars in damage, insurance providers generally use special, “named storm deductibles,” to provide coverage in the event of a loss.
Named storm deductibles are typically higher than traditional fixed-dollar deductibles, but are only triggered under specific circumstances and can vary based on location. However, it’s important to know the details of these deductibles so your family and home are prepared in the event of a severe storm.
What’s in a Name?
Named storm deductibles are triggered by just that—a tropical depression, tropical storm or hurricane that is severe enough to be named by the National Weather Service (NWS).
The NWS first started to name storms to make it easier for the public to track and follow severe storms as they developed. However, after large hurricanes and tropical storms began to cause large amounts of damage, insurance providers began looking for ways to mitigate their losses. Named storm deductibles, tied to the time periods surrounding NWS-named storms, ensure that insurance providers are responsible for a smaller portion of any loss caused by a named storm.
It’s important to note that other organizations have started to name storms. The Weather Channel, a privately owned weather organization, recently began naming winter storms in order to make tracking them easier for its viewers. However, insurance providers only apply named storm deductibles to storms named by the NWS.
The Triggers for Named Storm Deductibles
The triggers for named storm deductibles can vary based on the insurance provider and location, although almost all triggers generally include a timing window, such as 24 hours before a storm is named by the NWS to 48 hours after it is downgraded to a tropical storm. During this window, your named storm deductible will apply to any damage instead of a normal wind and hail deductible.
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