Must I pay more than one deductible during hurricane season?

Louisiana is one state that is working to ensure that homeowners are not overpaying for their insurance. Due to the likeliness of hurricanes in the state, most homeowners have hurricane insurance coverage on their homes. While most insurance companies require a deductible for every insurance claim, hurricane insurance doesn’t work this way.

One deductible for the whole season

When someone sustains a personal injury due to a hurricane, he or she will submit a claim to his or her insurance provider. When a person suffers multiple injuries throughout the hurricane season, he or she may falsely believe that he or she must pay a deductible for each injury. That is not the case.

Louisiana has a hurricane deductible law, also known as the named-storm law, that prohibits policyholders from paying their deductible more than once per season. It’s important to realize that you must pay the entire amount before you become exempt from spending money in the future. If you only paid a partial amount of your total deductible during your previous claim, you would still owe the remaining deductible amount before you’re considered exempt from paying again for the same season.

What does a deductible cost?

Traditionally, insurance providers charge anywhere from $500 to $2,000 for a typical deductible for hurricane insurance. However, with the occurrence of devastating hurricanes over the past few years like Hurricane Katrina, insurance providers have changed their deductible amounts. Now policyholders can expect to pay anywhere between 2% and 5% of their home’s insured value. For example, if your house is insured for $150,000, and you’re charged 2%, your deductible would be $3,000.

Hurricane insurance is a great investment for those who live near the coast. Taking the time to understand what your deductible is and how often you’ll need to pay it can help save you money. For residents living in Louisiana, insurance deductibles only need to be paid once throughout the season.