Tag Archives: Deductible

No Waving of Deductibles Bill: Texas HB 2102

The Problem: Waiving insurance policy deductibles (“you scratch my back and I’ll scratch yours”) has been common place in Texas since 1989 and came about as the result of a poorly worded statute passed that same year that contractors have basically ignored. Contractors who have broken the 1989 law by waving deductibles (primarily roofing contractors) … Continue Reading

Why Do I Have To Pay A Large Named Windstorm Deductible? Confusion With Named Windstorm Deductibles Versus Flood Deductibles In Hurricane Scenarios

Named Windstorm deductibles are fairly common in areas prone to hurricanes. Instead of a policyholder being responsible for deductibles which can regularly rise to several thousand dollars, in the event of a named storm, which tropical storms and hurricanes become, a higher Named Windstorm Deductible applies and usually results in a very high deductible. Many … Continue Reading

Insurance Department Guidance on Application of Named Storm / Hurricane Deductibles

Louisiana’s Department of Insurance, through its Commissioner, James J. Donelon, issued an Advisory Letter No. 2018-01 on June 18, 2018, to inform all property and casualty insurers how the separate named storm deductibles or hurricane deductibles are to be interpreted and applied to claims resulting from a subtropical storm named by the National Hurricane Center … Continue Reading

New Insurance Product May Help Cover Gaps in Traditional Commercial Policies for Hurricanes

Commercial insurance policies are as varied as they are numerous. One thing they all generally have in common is coverage exclusions and high hurricane deductibles. New Paradigm Underwriters, LLC is offering a new insurance product called Hurricane PM. Hurricane PM is part deductible buyback policy part gap coverage that gets the insured paid from dollar … Continue Reading

Florida Hurricane Deductibles

Hurricane Danny was named the first hurricane of the Atlantic 2015 hurricane season. It is still far from Florida, however, if you are a Floridian, you might take the time to pull out your homeowners or commercial property insurance policy to review your coverage and what your duties are after a loss.… Continue Reading

Was Superstorm Sandy a “Named Storm?”

Property insurance policies commonly contain a “Named Storm” deductible, which provides for a substantially higher deductible than other causes of loss. For example, the policy in AFP 104 Corp. v. Columbia Casualty Company1 contained a base deductible of $10,000 and a Named Storm deductible of $1 million per occurrence.… Continue Reading

Proposed New York Legislation Seeks To Eliminate Surprise To Policyholders From Large Hurricane Percentage Deductibles

Knowing is half the battle…Do you know the specific amount of your hurricane deductible in your insurance policy? Do you know specifically if that hurricane deductible would apply to a Super-Storm Sandy claim? A Bill recently introduced this New York Legislative Session would specifically answer both these questions. It seems to simplify the amount and … Continue Reading

How Many Deductibles? Proper Application Of Deductible Under A Blanket Policy On Commercial Properties

A blanket property insurance policy covers different types of property at one or more locations and does not specify the valuation of the items protected under the blanket, but instead allocates an overall limit to the policy, upon which premiums are based. The expression “blanket policy” is a term of art in the field of … Continue Reading

Florida Statute §627.701 Requires Insurance Carriers to Warn Policyholders of Higher Hurricane Deductible

A deductible is an important element of every insurance policy. It is the amount the policyholder agrees to pay before insurance coverage kicks in, or the portion of the risk the policyholder agrees to self insure. It is no secret that insurance carriers prefer to issue policies with higher deductibles for certain perils, including hurricane … Continue Reading

Shell Game as to which Deductible Applies

There were many insurance claims filed after the 2005 hurricanes that devastated Florida, Louisiana and Mississippi. Although many different legal issues arose in the ensuing insurance litigation, a bad faith case in Louisiana revolved around the issue of whether the insurance company applied the correct deductible. This week I will explain the Fifth District Court … Continue Reading

A Business Income Deductible is a Concept of Time – Understanding Business Interruption Claims, Part 54

Many clients and claim professionals often have questions about their deductible responsibility toward their business income claim. Typically, if the property has sustained physical loss or damage, the insured will be required satisfy the applicable peril-deductible to receive benefits to repair or replace the damaged property and trigger the business income coverage. However, insureds should … Continue Reading

According To Florida Statute, An Insurer Cannot Apply A Policy Hurricane Deductible More Than Once During A Calendar Year For Personal Lines Residential Claims

As many people are aware, property insurance policies often have a large deductible for hurricane losses. In Florida, the hurricane deductible can be a percentage of the dwelling policy limit: 2%, 5%, or even 10%. These percentage deductibles can be very large on personal lines residential claims where a policyholder’s house may be insured for … Continue Reading

When Calculating Insurance Payments, Take the Deductible From the Repair Value and Not the Policy Limits

One wrongful adjustment method that occurs from time to time is the practice of taking the deductible from the policy limit. For insurers, this is a way to never pay the policy limit. When this occurs, the underwriter essentially charges unearned premium for the amount of the deductible, and the policyholder never has a chance … Continue Reading