Hurricane deductibles are an important part of a Florida condominium or homeowner association’s insurance program, yet they are often not fully understood until after a storm occurs. Understanding how the deductible works before hurricane season allows boards and property managers to plan appropriately and helps reduce uncertainty and unexpected expenses during an already stressful time.
Depending on the policy, in the event of a named hurricane, the deductible typically applies as a percentage of the total insured value (TIV). For example, if an association’s building is insured for $2,000,000 and carries a 5% hurricane deductible, the association would be responsible for the first $100,000 of hurricane-related damage to that building before the insurance policy responds. The hurricane deductible percentage can be influenced by factors such as the association’s location, construction type, roof age and condition, prior loss history, and overall conditions in the Florida insurance marketplace at the time of renewal. For condominium and HOA boards in Sarasota, Manatee, and Charlotte counties, reviewing these factors with Atlas Insurance can help provide greater clarity ahead of hurricane season.
For most Florida condominium associations, hurricane deductibles are applied on a per-building basis. This means the percentage deductible applies separately to each building that sustains damage, which can significantly increase the association’s financial responsibility if multiple buildings are impacted by the same storm.
In summary, hurricane deductibles are a known exposure for Florida associations. By understanding how and when the deductible may apply, managers, board members, and unit owners can plan more effectively and reduce the likelihood of unexpected surprises following a storm. Atlas Insurance works with condominium and homeowner associations to help navigate hurricane deductibles.
