How a percentage deductible works
A percentage deductible is calculated on your dwelling limit (Coverage A), not on the size of the loss. On an illustrative $425,000 limit, a 2% deductible is $8,500. If the storm damage is $18,750, the policy would pay about $10,250 — compared with $17,750 if a $1,000 flat deductible applied.
When it applies
Trigger language varies by insurer: some apply the percentage only to a named hurricane, some to any named storm, and some for a set period around a storm watch or warning. A nor’easter, a derecho or a summer thunderstorm usually falls under the regular deductible. Read the endorsement — and check whether the insurer applied the right one.
Appraisal and deductibles
Appraisal sets the amount of loss; the deductible is then applied according to the policy. If the loss is close to the deductible, small valuation differences decide whether anything is paid at all.
Questions about this tool
Can my insurer apply the hurricane deductible to a tropical storm?
It depends on your endorsement’s trigger wording. Some forms apply to named storms of any strength; others only to hurricanes. Compare the wording with the official storm advisories for your date of loss.
Is flood damage subject to this deductible?
Flood is generally excluded from homeowners policies and covered separately, usually through the National Flood Insurance Program, with its own deductible.