Some carriers include "Named Storm Deductibles" in their home insurance policies. These may also be called "Tropical Cyclone Deductibles".
Pay close attention to these. Some can be anywhere from 1% -10% of the Dwelling Coverage (Coverage A).
As an example, if you have $500,000 on your structure, (Coverage A), with a 5% named storm deductible, this means that damage caused by a "named storm" (i.e. Tropical storm Henry) will cost you $25,000 before coverage from your carrier kicks in. Most people do not know what these are or how they work on a policy until a claim occurs.
If you live in a "Coastal" area, you may not have a choice. Many Coastal areas, if not all, incorporate these due to the higher risk of "named storms" in these areas. however, if you are not in a "Coastal area", pay close attention to this in your policy.
You may wonder why one policy is less premium than another. This could be the reason. Not many people have this amount of cash set aside to pay this type of deductible.
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