What are the significant differences between your AOP and hurricane deductible?

What Are The Significant Differences Between Your AOP And Hurricane Deductible?

Many people who move to FL from other states are infrequently blown away with the two deductible ideas we have got here in FL in regard to our homeowner insurance. For those among us who have lived here for some time we have kind of gotten used to these changes since our system slowly changed after hurricane Andrew in 1992.

first of all what's an all other premium ( AOP ) deductible? This deductible is for non-hurricane related claims like fire, theft, vandalism, accidental water discharge and acts of The Lord God like lightning, tornados, hail to cite a couple. If a windstorm that is not a named typhoon causes damage, this is usually subject to your AOP deductible. These deductibles are usually five hundred, one thousand or 2500 with most carriers.

Your hurricane deductible is much dissimilar and only applies to named typhoons classified as hurricanes. With many carriers, if your home is valued over $100,000 then the standard hurricane deductible is two percent of your coverage'A' amount on your policy. Coverage'A' is your structure or dwelling coverage. Some folks become bewildered thinking they need to only pay 2 percent of the damage which is an enormous difference from how it is actually paid.





As an example lets say your home is costed at 250,000. If you've got a 2% hurricane deductible then you'll be responsible for the 1st 5000 of damage to you home. Anything over that deductible the insurance firm will pay as much as your policy limits to fix your home.

Some carriers will set your deductible at 2% but let you buy down to as low as a 500 deductible. In deciding this you just have to weigh the pros and cons of your exposure vs. The add'l value of lowering your deductible. If you are nearer to the coast then this is going to be something to strongly consider. keep in mind that the closer you are to the coast ; less carriers will be offering the facility to buy down your deductible. Some even make it mandatory for you to go with a five percent or perhaps 10% hurricane deductible to lower their exposure. I'm hoping this information was helpful in explaining your deductibles!

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Henry Fleet

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