As we work through all of the claims that came in from March’s Nor’easters, we have had to share disappointing news with some of our clients. Some policies have a separate deductible for wind claims, which is higher than the regular deductible. You may not even know that you have a different windstorm deductible. You don’t want to find out after a loss.
Why Do They Do This?
When there’s a big wind event, like March’s Nor’easters, insurance companies won’t just have a claim from you; they’ll have one from practically everybody else in the affected area. Higher wind deductibles offset the financial burden that comes with having to pay several losses all at once.
How Do You Know If You Have A Higher Wind Deductible?
Look at your declarations page, usually the first page of the policy – the one with your name and address on it. You’ll see your regular deductible and nearby, the wind deductible if you have one. Your wind deductible may be a flat figure, like $2,000. Or it may have a percentage of 2%. The percentage is of the limit of liability for your dwelling. For example, if your dwelling coverage is $200,000, your 2% windstorm deductible is $4,000.
Check your Policy.
Higher wind deductibles fall into the bad surprise category, especially if the deductible is higher than the actual claim, in which case, you get zero. Take a look at your policy and find out if you have a wind deductible. If you do, contact your agent to see if there’s any way to lower it. With hurricane season right around the corner, don’t compound the trauma of a loss with the shock of a zero-dollar settlement.