|
Deductibles: Higher Deductible Applies Only in Named Hurricane Events |
|
|
|
|
08/19/2008 |
ATTENTION: All Florida Association of Insurance Agents
SUBJECT: Hurricane Deductibles (TS Fay)
FROM: FAIA
DATE: August 19, 2008
It appears Tropical Storm (TS) Fay will not reach hurricane status.
However, hurricane warnings were posted in Florida, creating confusion
for some that such a warning triggers application of a “hurricane”
deductible. This alert is to assist agents in communicating to carriers
and others that such is not the case.
In 2001, the Department of Insurance (now the Office of Insurance Regulation) issued a bulletin, addressing this identical situation
with TS Barry. Therefore, assuming TS Fay never reaches hurricane
strength, resulting damage should receive application of the
appropriate All Other Perils (AOP) deductible.
Note: some policies may contain a separate "windstorm" (not hurricane) deductible, in which case that deductible would apply.
The following is relevant wording from the previous DOI bulletin for TS Barry:
The Panhandle of Florida recently endured damaging wind and rain from
Tropical Storm Barry. Property along the Gulf Coast of Florida bore the
brunt of this Tropical Storm. All property and casualty insurers are
reminded that hurricane deductibles are only applicable when a storm
system has been declared a hurricane by the National Hurricane Center.
Tropical Storm Barry never reached hurricane strength. Accordingly, the
only deductible that will be applicable is the "all other perils"
deductible.
The Department will monitor the industry's use of deductibles relative
to Tropical Storm Barry to ensure compliance with the provisions of
each company's policies and the Florida Insurance Code.
|
