Which of the following are available as HO hurricane deductibles?

• A. All of the above
• B. 2%
• C. 5%
• D. $500

Answer: (A)

Hurricane deductibles are special deductibles that apply only to hurricane-related windstorm losses and can be set up in more than one way. In Florida, you’ll commonly see them offered as either a percentage of the dwelling coverage or as a fixed dollar amount. A 2% deductible means you’d pay 2% of your insured dwelling amount toward a hurricane loss, while a 5% deductible would be 5% of that same amount. Some policies also offer a fixed dollar deductible, like $500, regardless of your dwelling value. Because both percentage-based options (2% and 5%) and fixed-dollar options (such as $500) are available on many HO hurricane policies, all of the listed formats can be offered. For context, if your dwelling coverage is $300,000, a 2% hurricane deductible would be $6,000, whereas a $500 fixed deductible would be $500.