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Understanding wind/hail percentage deductables

When it comes to insuring homes in Louisiana, one of the most confusing items that customers come across is the percentage deductible. I am going to try to help clear up what the percentage deductible is and how to calculate what the actual dollar amount is on your policy.
First, the percentage deductible has 2 basic forms:
1) Hurricane(named storm) deductible
2) Wind/Hail deductible.
There is a MAJOR difference between these 2 types of deductibles!
A named storm deductible applies to damages that arise as a result of a hurricane or named storm event. For example if a hurricane approaches and the wind blows the shingles off your roof or if a tree is blown onto your home during a named storm then your named storm deductible would apply to your damages(I will discuss calculating the deductible in a minute).
A wind/hail deductible is a much broader deductible. This deductible would apply WHENEVER the wind blows or you suffer hail damage. So for example a severe thunderstorm rolls through your area and your home is damaged by wind or limbs falling from a tree during the storm, your wind/hail deductible would apply. If you ever have a choice between these 2 types of deductibles you would want to choose the more restrictive deductible which would be the named storm deductible.
Now lets talk about how to calculate these percentage deductibles if you have one on your policy. One common misconception about the percentage deductible is that it is a percentage of the amount of your loss which is NOT correct. The percentage deductible is calculated based off the amount of coverage you have on Coverge A which is the dwelling coverage. So if, for example, the coverage amount shown on the declarations page for your home is $250,000 and your named storm or wind/hail deductible is shown as 5% then the deductible amount for a loss suffered during one of those events would be $12,500. It is calculated like this:
$250,000 x .05 = $12,500. There are some companies that are putting mandatory percentage deductibles on your home no matter where you live in the state and some of these deductibles are as high as 5%! If you are unsure if you have one of these deductibles I would be more than happy to review your policy with you, I have over 10 years experience as a property and casualty agent with Dart Insurance Agency which has been in business since 1911.