Louisiana’s single season named-storm/hurricane deductible law prohibits a homeowner from paying more than one named-storm/hurricane deductible in the same hurricane season, the state insurance department is reminding vulnerable policyholders in advance of Hurricane Delta.
Louisiana Insurance Commissioner Jim Donelon wants policyholders affected by Hurricane Laura and who may be impacted by Hurricane Delta to be aware of that statute.
According to the Louisiana Department of Insurance, if a policyholder has already filed a claim for hurricane damage during the 2020 season and met their named-storm/hurricane deductible, they will not have to pay that named-storm/hurricane deductible again if their home sustains damage from Hurricane Delta or any other storm this season.
If any previous claims for named-storm/hurricane damage fell below the named-storm/hurricane deductible, the remainder of that deductible will apply to the second storm if the remainder is greater than the standard policy deductible.
“After Hurricane Gustav struck Louisiana in 2008 and Hurricane Ike threatened the same area, I worked to protect consumers from the burden of having to pay two named-storm/hurricane deductibles in one season,” Commissioner Donelon said in a media release. “We partnered with the Legislature in 2009 to enact the single-season named-storm/hurricane deductible law to limit policyholder exposure to active hurricane seasons like the one we are seeing now.”
Homeowners policies carry a basic policy deductible typically ranging from $500 to $2,000 depending on the insurance company. However, after Hurricanes Katrina and Rita, separate hurricane, named-storm and wind and hail deductibles became common in coastal states. These deductibles typically run between two and five percent of your insured value, not two to five percent of your damage from a named-storm or hurricane.
For example, if your home has an insured value of $150,000 with a two percent named-storm/hurricane deductible, you would pay $3,000 out of pocket before the company would pay toward hurricane or named-storm damage. That means if the damage to your home is $3,000 or less, the insurance company will not be responsible for paying on your claim.
If the damage to your home is $5,000, in this example a policyholder would pay the first $3,000 out of pocket and the insurance company would pay the remaining $2,000. Policyholders can find out how much your deductibles are by checking the first page of their homeowners policy or by calling their agent or company for more information.
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