Policyholders Are Subject to Only One Hurricane Deductible Per Season
NEW ORLEANS – Louisiana’s single season named-storm/hurricane deductible law prohibits a homeowner from paying more than one named-storm/hurricane deductible in the same hurricane season, said Louisiana Insurance Commissioner Jim Donelon in a statement. And if any previous claims for named-storm/hurricane damage fell below the named-storm/hurricane deductible, the remainder of that deductible will apply to the second storm if the remainder is greater than the standard policy deductible.
“After Hurricane Gustav struck Louisiana in 2008 and Hurricane Ike threatened the same area, I worked to protect consumers from the burden of having to pay two named-storm/hurricane deductibles in one season,” said Donelon. “We partnered with the Legislature in 2009 to enact the single-season named-storm/hurricane deductible law to limit policyholder exposure to active hurricane seasons like the one we are seeing now.”
Homeowners policies carry a basic policy deductible typically ranging from $500 to $2,000 depending on the insurance company. However, after Hurricanes Katrina and Rita, separate hurricane, named-storm and wind and hail deductibles became common in coastal states. These deductibles typically run between two and five percent of a home’s insured value, not two to five percent of the damage from a named-storm or hurricane.