HURRIACNE AND SEA TEMPS

Why hurricanes are named.

When you are told “named storm, its not covered” it means you need to check your wind and your hurricane deductible.

A storm is called a hurricane when it forms over the Atlantic and the eastern and central Pacific Oceans; a cyclone
when it forms over the southern Pacific and Indian Oceans; and a typhoon when it forms over the western Pacific Ocean.

Names are given to tropical storms and hurricanes to give people a quick reference point and to reduce confusion.

“Unlike other storms, hurricanes can be around for weeks,” says Dennis Feltgen, a public affairs specialist and meteorologist
 for the National Hurricane Center. “We’ve also had cases where up to five named storms formed at the same time.
For these reasons, we name hurricanes and not other types of storms.”

Some early naming conventions included naming hurricanes after the saint’s day on which they fell and the phonetic alphabet.
 It wasn’t until 1953 that the National Weather Service (NWS) began naming hurricanes after simple, easy-to-remember women’s names. (Men’s names were later added in 1978.)

Deductible drama around named storms.

Another reason people opposed naming winter storms had to do with named-storm deductible clauses in insurance policies.
These clauses stipulate that an insurer can charge a higher deductible than normal once a weather event becomes a named storm.

Though this fear proved groundless with respect to winter storms, it still applies to hurricane and wind damage coverage. Many named-storm deductible clauses work by requiring a deductible that’s a certain percentage of a home’s value—anywhere from
 one to 10 percent—instead of a fixed dollar amount. That means instead of paying a $500 or $1,000 deductible, a house that’s insured for the U.S. average of $161,100 would shell out $16,100 if their named-storm deductible was 10 percent.

Explanation of Terms:

Beach Plan, FAIR (Fair Access to Insurance Requirements) Plan; and other involuntary or residual markets: insurers of last resort,
state-run pools that provide insurance to people who are unable to obtain insurance in the voluntary market. Beach Plans
operate in specific coastal territories, defined by zip codes, counties or geography; FAIR Plans are generally statewide.


Explanation of Terms:

Deductible: amount of loss paid by the policyholder before insurance kicks in.

Dollar deductibles: a flat dollar amount.

Mandatory deductibles: may be set by insurance rules, regulations or state law, or by an insurer.

Market Assistance Plan (MAP): a voluntary clearinghouse and referral system designed to put people looking for insurance
 in touch with companies that have agreed to take on more business.

Optional deductibles: mostly used in less vulnerable areas. Policyholders may opt for these higher deductibles in order to
pay a lower premium.

Percentage deductibles: calculated as a specified percentage, for example 2 percent, of the insured value of the property.

Standard deductibles: an indication of the usual homeowners insurance deductibles in the state or area.

Trigger: an event that is needed for a hurricane deductible to be applied. Hurricane deductibles are “triggered” only when there
 is a hurricane, or a tropical storm. Triggers vary by state and insurer and may apply when National Weather Service (NWS)  "names" a tropical storm, declares a hurricane watch or warning or defines the hurricane's intensity. Triggers generally include a timing factor, i.e., damage occurring within 24 hours before storm is named or a hurricane makes landfall up to as long as 72 hours after hurricane is downgraded to a lesser storm or a hurricane watch canceled.

How Hurricane Deductibles Work

There are two kinds of wind damage deductibles: hurricane deductibles, which apply to damage solely from hurricanes, and windstorm or wind/hail deductibles, which apply to any kind of wind damage. Percentage deductibles typically vary from 1 percent  of a home's insured value to 5 percent. In some coastal areas with high wind risk, hurricane deductibles may be higher.

The amount that the homeowner will pay depends on the home's insured value and the "trigger" selected by the insurance company, which determines under what circumstances the deductible applies. In some states, policyholders may have the option of paying a higher premium in return for a traditional dollar deductible, depending on how close to the shore they live. In some high-risk coastal areas, insurers may not give policyholders this option, making the percentage deductible mandatory.

greenbutton