June 28, 2010
By: Jana Bell
With the Atlantic hurricane season getting underway, a leading insurance industry organization is reminding people to check up on their home insurance policy's hurricane deductibles.
According to the Insurance Information Institute, hurricane deductibles are incorporated into many home insurance policies written in 18 coastal states, as well as the District of Columbia. States along the Gulf Coast and Eastern Seaboard, including New York and New Jersey, allow hurricane deductibles.
"In the face of increased coastal development, combined with an increased risk of a hurricane, hurricane deductibles were created to help keep private sector property insurance coverage available and affordable by having the policyholder share more of the risk with their insurer," said Michael Barry, the III's vice president of media relations.
The announcement also noted that many home insurance policies have deductibles of $500 or $1,000, while hurricane deductibles can vary based on a home's insured value.
Scientists with the National Oceanic and Atmospheric Administration have predicted that the Atlantic hurricane season will be very active this year. According to the NOAA, current projections suggest that there could be as many as 23 named storms and 14 hurricanes this year, up to seven of which could be major.
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